The Analytical Overview of the Main Currency Pairs on 2020.09.10

The EUR/USD currency pair

• Prev Open: 1.17740
• Open: 1.18008
• % chg. over the last day: +0.20
• Day's range: 1.18203 – 1.18265
• 52 wk range: 1.0637 – 1.2012

During yesterday's trading session, the EUR/USD currency pair turned back and moved to growth before the ECB meeting. Today, the regulator will announce its decision on the key interest rate. According to analysts' forecasts, the Central Bank will keep the key marks of monetary policy at the same level. We recommend paying attention to the comments by the ECB representatives. Investors will also assess important US economic releases. At the moment, the key support is the round level of 1.1800, the nearest resistance is at 1.1840. We recommend opening positions from these levels.

• – ECB interest rate decision at 14:45 (GMT+3:00);
• – Initial jobless claims at 15:30 (GMT+3:00);
• – Producer price index in the US at 15:30 (GMT+3:00).

Indicators do not give accurate signals: the price is consolidating near 50 MA and 100 MA.

The MACD histogram is in the positive zone and above the signal line, which indicates the development of bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell EUR/USD.

• Support levels: 1.1800, 1.1755
• Resistance levels: 1.1840, 1.1880, 1.1900

If the price fixes above 1.1840, further growth in EUR/USD quotes is expected. The movement is tending to 1.1880-1.1900.

An alternative could be a decline in the EUR/USD currency pair to 1.1760-1.1730.

The GBP/USD currency pair

• Prev Open: 1.29806
• Open: 1.29853
• % chg. over the last day: -1.36
• Day's range: 1.29978 – 1.30113
• 52 wk range: 1.1409 – 1.3516

During yesterday's trading session, the GBP/USD currency pair has moved away from local lows. The British pound is still under pressure due to Brexit uncertainty. At the moment, quotes are moving in a flat in the range of 1.2980-1.3030. A further correction of the trading instrument is possible. Positions should be opened from key levels. We recommend following up-to-date information concerning the UK-EU Brexit deal.

The news feed on the UK economy is calm.

Indicators do not give accurate signals: the price has crossed the 50 MA.

The MACD histogram is near the 0 mark, which also does not give signals.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

• Support levels: 1.2980, 1.2900
• Resistance levels: 1.3030, 1.3080, 1.3140

If the price fixes below 1.2980, GBP/USD quotes are expected to fall. The movement is tending to 1.2900-1.2880.

An alternative could be a further correction of the GBP/USD currency pair to 1.3080-1.3140.

The USD/CAD currency pair

• Prev Open: 1.32325
• Open: 1.31453
• % chg. over the last day: -0.69
• Day's range: 1.31419 – 1.31500
• 52 wk range: 1.2949 – 1.4669

During yesterday's trading session, there were aggressive sales on the USD/CAD currency pair. The decline in quotes exceeded 100 points. At the moment, the trading instrument is consolidating in the range of 1.3130-1.3160. The Bank of Canada meeting was held yesterday, during which the regulator left the key interest rate unchanged at 0.25% per annum. Positions should be opened from key levels.

Today, the news feed in Canada is calm. We recommend paying attention to economic releases from the US.

Indicators do not give accurate signals: the price is being traded between 50 MA and 100 MA.

The MACD histogram is in the negative zone, below the signal line, which gives a strong signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

• Support levels: 1.3130, 1.3100, 1.3070
• Resistance levels: 1.3170, 1.3200, 1.3230

If the price fixes below 1.3130, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3100-1.3070.

An alternative could be the growth of the USD/CAD currency pair to 1.3210-1.3240.

The technical pattern on the USD/JPY currency pair is still ambiguous. The yen is still being traded in a prolonged flat. Financial market participants expect additional drivers. At the moment, the local support and resistance levels are: 106.00 and 106.35, respectively. Today we recommend paying attention to the economic reports from the US. Positions should be opened from key support and resistance levels.

Today, the news feed on Japan's economy is calm.

Indicators do not give accurate signals: the price has crossed the 50 MA and 100 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

• Support levels: 106.00, 105.80, 105.60
• Resistance levels: 106.35, 106.50, 106.90

If the price fixes above 106.35, USD/JPY quotes are expected to grow. The movement is tending to 106.70-107.00.

An alternative could be a decline in the USD/JPY currency pair to 105.70-105.50.

by JMarkets, 2020.09.10

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.