The Analytical Overview of the Main Currency Pairs on 2019.08.05

August 5, 2019

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10804
  • Open: 1.11039
  • % chg. over the last day: +0.22
  • Day’s range: 1.10996– 1.11326
  • 52 wk range: 1.1034 – 1.1817

The EUR/USD currency pair began to recover after a long fall. The trading tool has updated the local highs. Currently, EUR/USD quotes are consolidating iaround 1.10950-1.11300. On Friday, the United States published mixed reports on the US labor market in July. Investors expect up-to-date information regarding the trade negotiations between Washington and Beijing. In the near future, we do not exclude the further restoration of the EUR. We recommend opening positions from key support and resistance levels.

The Economic News Feed for 05.08.2019:

  • – Some business activity indicators (GER, EU) – 10:55, 11:00 (GMT+3:00);
  • – Non-manufacturing PMI by ISM (US) – 17:00 (GMT+3:00);
EUR/USD

Indicators point to the strength of buyers: the price has fixed above 100 MA.

The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy EUR/USD.


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

Trading recommendations
  • Support levels: 1.10950, 1.10600, 1.10250
  • Resistance levels: 1.11300, 1.11600, 1.11850

If the price consolidates above 1.11300, expect further correction toward 1.11600-1.11850.

Alternatively, the price could descend toward 1.10700-1.10500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21512
  • Open: 1.21199
  • % chg. over the last day: -0.29
  • Day’s range: 1.20903 – 1.21447
  • 52 wk range: 1.2080 – 1.3385

Yesterday, the Bank of England, as expected, kept its key interest rate unchanged at 0.75%. The regulator is concerned about the hard Brexit scenario. The Central Bank also worsened the forecast for UK GDP growth for 2019-2020. At the moment, the GBP/USD currency pair is in lateral movement. The trading tool tests the key support and resistance levels 1.20800 and 1.21600. Investors are expecting a report on the US labor market. We recommend opening positions from key levels.

At 11:30 (GMT+3:00), the UK will publish the business activity index for the construction sector.

GBP/USD

The price fixed below 50 MA and 100 MA, which signals the strength of sellers.

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

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

Trading recommendations
  • Support levels: 1.20800, 1.20200
  • Resistance levels: 1.21600, 1.22500, 1.23000

If the price consolidates below 1.20800, expect a further drop toward 1.20500-1.20200.

Alternatively, the price could recover toward 1.22000-1.22300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32122
  • Open: 1.32110
  • % chg. over the last day: -0.05
  • Day’s range: 1.31916 – 1.32425
  • 52 wk range: 1.2727 – 1.3664

The technical picture on the USD/CAD currency pair is still ambiguous. The trading instrument is in lateral movement. CAD is currently testing local support and resistance levels at 1.32000 and 1.32350. USD/CAD quotes have the potential for further growth. We recommend paying attention to the dynamics of oil quotes. Positions must be opened from key levels.

Today, Canada’s financial markets are closed due to the holiday.

USD/CAD

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

The MACD histogram is in the positive zone and continues to rise, indicating bullish sentiment.

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

Trading recommendations
  • Support levels: 1.32000, 1.31800, 1.31500
  • Resistance levels: 1.32350, 1.32650, 1.32800

If the price consolidates above 1.32350 expect further growth toward 1.32650-1.32800.

Alternatively, the price could drop toward 1.31800-1.31500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.334
  • Open: 106.528
  • % chg. over the last day: -0.70
  • Day’s range: 105.786 – 106.682
  • 52 wk range: 104.97 – 114.56

The USD/JPY currency pair continues to show a pronounced downtrend. The trading instrument approached annual lows. Demand for “safe” assets remains high due to the escalation of the trade conflict between the US and China. At the moment, USD/JPY quotes are consolidating in the range of 105.800-106.300. In the near future, technical correction is not ruled out. Today we recommend paying attention to economic releases from the USA. Positions must be opened from key levels.

The Economic News Feed for 05.08.2019 is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 105.800, 105.500
  • Resistance levels: 106.300, 106.800, 107.200

If the price consolidates below 105.800, expect further descend toward 105.500-105.300.

Alternatively, the price could rise toward 106.700-107.000.

by JustForex