The Analytical Overview of the Main Currency Pairs on 2020.05.28

May 28, 2020

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09814
  • Open: 1.10009
  • % chg. over the last day: +0.21
  • Day’s range: 1.09991 – 1.10351
  • 52 wk range: 1.0777 – 1.1494

The single currency has continued its growth against the greenback. EUR/USD quotes have overcome the key mark of 1.1000. The European Commission has proposed a package of measures 1.85 trillion euros worth to restore the economy from the COVID-19 epidemic. According to the Fed’s Beige Book, economic activity has slowed down sharply in most regions. Investors continue to monitor the conflict between Washington and Beijing. Today, important economic reports from the United States are in the focus of attention. We recommend opening positions from key levels.

News Feed on the US Economy for 2020.05.28:
  • – Report on durable goods orders at 15:30 (GMT+3:00);
  • – Preliminary data on the country’s GDP at 15:30 (GMT+3:00);
  • – Initial jobless claims at 15:30 (GMT+3:00);
  • – Pending home sales at 17:00 (GMT+3:00).
EUR/USD

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 has started exiting the oversold zone, the %K line is above the %D line, which indicates the bullish sentiment.


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Trading recommendations
  • Support levels: 1.0990, 1.0940, 1.0915
  • Resistance levels: 1.1035, 1.1060

If the price fixes above the level of 1.1035, further growth of EUR/USD quotes is expected. The movement is tending to 1.1060-1.1080.

An alternative could be a decrease in the EUR/USD currency pair to 1.0950-1.0930.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23337
  • Open: 1.22588
  • % chg. over the last day: -0.66
  • Day’s range: 1.22484 – 1.22812
  • 52 wk range: 1.1466 – 1.3516

Yesterday, there were aggressive sales on the GBP/USD currency pair. The British pound is under pressure due to rumors of negative interest rates. At the moment, the technical pattern is ambiguous. GBP/USD quotes are consolidating in the range of 1.2240-1.2280. Financial market participants expect important economic releases from the US. We recommend opening positions from key levels.

The news on the UK economy is calm.

GBP/USD

Indicators do not give accurate signals: the price has fixed between 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 GBP/USD.

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

Trading recommendations
  • Support levels: 1.2240, 1.2205, 1.2160
  • Resistance levels: 1.2280, 1.2325, 1.2360

If the price fixes above 1.2280, GBP/USD quotes are expected to grow. The movement is tending to 1.2320-1.2350.

An alternative could be a decrease in the GBP/USD currency pair to 1.2210-1.2180.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.37758
  • Open: 1.37504
  • % chg. over the last day: -0.19
  • Day’s range: 1.37342 – 1.37811
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable after a sharp drop since the beginning of this week. The loonie is currently consolidating. There is no defined trend. The local support and resistance levels are 1.3730 and 1.3780, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of “black gold” prices. We do not exclude a further decline in the USD/CAD currency pair. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

USD/CAD

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

The MACD histogram is in the negative zone, indicating the bearish sentiment.

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

Trading recommendations
  • Support levels: 1.3730, 1.3700
  • Resistance levels: 1.3780, 1.3820, 1.3870

If the price fixes below 1.3730, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3700-1.3670.

An alternative could be the growth of the USD/CAD currency pair to 1.3820-1.3850.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.563
  • Open: 107.730
  • % chg. over the last day: +0.21
  • Day’s range: 107.687 – 107.901
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is still being traded in a prolonged flat. The technical pattern is ambiguous. At the moment, the local support and resistance levels are 107.65 and 107.90, respectively. Investors expect additional drivers. The conflict between the US and China remains in the spotlight. Today, financial market participants will assess important economic reports from the US. Positions should be opened from key levels.

The news feed on Japan’s economy is calm.

USD/JPY

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

The MACD histogram is in the positive zone, indicating the bullish sentiment.

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

Trading recommendations
  • Support levels: 107.65, 107.40, 107.10
  • Resistance levels: 107.90, 108.95

If the price fixes above 107.90, USD/JPY quotes are expected to grow. The movement is tending to 108.10-108.30.

An alternative could be a decrease in the USD/JPY currency pair to 107.40-107.20.

by JustForex