The Analytical Overview of the Main Currency Pairs on 2020.10.06

The EUR/USD currency pair

• Prev Open: 1.17110
• Open: 1.17816
• % chg. over the last day: +0.52
• Day's range: 1.17745 – 1.18002
• 52 wk range: 1.0637 – 1.2012

During yesterday's trading session, the greenback weakened against its main competitors. EUR/USD quotes have reached the round level of 1.1800. The 1.1765 mark is already a "mirror" support. The demand for the US currency has weakened amid worries about Donald Trump’s health and the US elections. Investors continue to monitor the progress of negotiations in the US Congress on a new stimulus package. The trading instrument has the potential for further growth. We recommend opening positions from key levels.

• – JOLTS job openings at 17:00 (GMT+3:00).

We also recommend paying attention to the speeches by the presidents of the ECB and the Fed.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

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

• Support levels: 1.1765, 1.1740, 1.1700
• Resistance levels: 1.1800, 1.1850

If the price fixes above 1.1800, further growth in EUR/USD quotes is expected. The movement is tending to 1.1840-1.1860.

An alternative could be a decline in the EUR/USD currency pair to 1.1740-1.1710.

The GBP/USD currency pair

• Prev Open: 1.29321
• Open: 1.29728
• % chg. over the last day: +0.37
• Day's range: 1.29627 – 1.30070
• 52 wk range: 1.1409 – 1.3516

GBP/USD quotes show a positive trend. The British pound has updated its two-week highs. The trading instrument found resistance near the round level of 1.3000. The 1.2950 mark is already a "mirror" support. The demand for greenback is still quite low. The GBP/USD currency pair has the potential for further growth. Positions should be opened from key levels.

At 11:30 (GMT+3:00), the UK construction PMI will be published.

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

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

• Support levels: 1.2950, 1.2900, 1.2830
• Resistance levels: 1.3000, 1.3050

If the price fixes above 1.3000, further growth of the GBP/USD currency pair is expected. The movement is tending to 1.3040-1.3060.

An alternative could be a drop in GBP/USD quotes to the round level of 1.2900.

The USD/CAD currency pair

• Prev Open: 1.32982
• Open: 1.32587
• % chg. over the last day: -0.21
• Day's range: 1.32419 – 1.32733
• 52 wk range: 1.2949 – 1.4669

The bearish sentiment prevails on the USD/CAD currency pair. USD/CAD quotes have updated local lows again. At the moment, the loonie is consolidating in the range of 1.3245-1.3280. The demand for the US dollar is still quite low. The trading instrument has the potential for further decline. We recommend paying attention to the dynamics of oil prices. Positions should be opened from key levels.

The news feed on Canada's economy is calm.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

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

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

• Support levels: 1.3245, 1.3200
• Resistance levels: 1.3280, 1.3300, 1.3330

If the price fixes below 1.3245, a further fall in USD/CAD quotes is expected. The movement is tending to the round level of 1.3200.

An alternative could be the growth of the USD/CAD currency pair to 1.3300-1.3330.

The USD/JPY currency pair has stabilized near two-week highs. At the moment, the technical pattern is ambiguous. Investors expect additional drivers. The key support and resistance levels are 105.50 and 105.80, respectively. USD/JPY quotes are tending to decline. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is quite calm.

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

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

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

• Support levels: 105.50, 105.40, 105.25
• Resistance levels: 105.80, 106.00

If the price fixes below 105.50, USD/JPY quotes are expected to fall. The movement is tending to 105.25-105.00.

An alternative could be the growth of the USD/JPY currency pair to 106.00-106.20.

by JMarkets, 2020.10.06

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.