The Analytical Overview of the Main Currency Pairs on 2020.07.10

July 10, 2020

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13270
  • Open: 1.12834
  • % chg. over the last day: -0.37
  • Day’s range: 1.12549  – 1.12903
  • 52 wk range: 1.0777  – 1.1494

Demand for risky assets has weakened amid a record number of new COVID-19 cases in the United States. Investors are concerned about possible introduction of new restrictive measures in the United States and other countries. During yesterday’s and today’s trading sessions, the drop in EUR/USD quotes has exceeded 60 points. At the moment, the trading instrument is consolidating in the range of 1.1260-1.1290. The single currency is tending to decline. Positions need to be opened from key support and resistance levels.

The news feed on 2020.07.10:
  • – The US producer price index at 15:30 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals: the price has crossed 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 above the %D line, which gives a signal to buy EUR/USD.


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Trading recommendations
  • Support levels: 1.1260, 1.1220, 1.1195
  • Resistance levels: 1.1290, 1.1305, 1.1330

If the price fixes below the level of 1.1260, a drop in the EUR/USD quotes is expected. The movement is tending to 1.1230-1.1200.

An alternative could be the growth of the EUR/USD currency pair to 1.1310-1.1340.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25959
  • Open: 1.26063
  • % chg. over the last day: +0.03
  • Day’s range: 1.25668  – 1.26109
  • 52 wk range: 1.1466  – 1.3516

The GBP/USD currency pair has stabilized after a prolonged rally. The pound sterling is currently consolidating. Local levels of support and resistance are: 1.2570 and 1.2625, respectively. In the near future, the technical correction of GBP/USD quotes is possible. Demand for risky assets has weakened. Positive data on jobless claims provides additional support for the greenback. Positions must be opened from key levels.

The news feed on the UK economy is calm.

GBP/USD

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

The MACD histogram is in the negative zone, which gives a 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: 1.2570, 1.2520, 1.2470
  • Resistance levels: 1.2625, 1.2675

If the price fixes below 1.2570, a correction of GBP/USD quotes is expected. The movement is tending to the round level of 1.2500.

An alternative could be the growth of the GBP/USD currency pair to 1.2670-1.2700.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35107
  • Open: 1.35872
  • % chg. over the last day: +0.43
  • Day’s range: 1.35752  – 1.36313
  • 52 wk range: 1.2949  – 1.4668

Purchases prevail on the USD/CAD currency pair. During yesterday’s and today’s trading sessions, the growth of quotations has exceeded 100 points. The trading instrument has reached local extremes. Loonie is currently testing the resistance level of 1.3630. The mark of 1.3585 is already a “mirror” support. USD/CAD quotes are tending to grow. We recommend you to pay attention to the dynamics of prices of “black gold”. Positions must be opened from key levels.

At 15:30 (GMT+3:00), a report on the labor market of Canada will be published.

USD/CAD

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

The MACD histogram is in the positive zone, which gives a signal to buy USD/CAD.

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

Trading recommendations
  • Support levels: 1.3585, 1.3555, 1.3520
  • Resistance levels: 1.3630, 1.3660, 1.3700

If the price fixes above 1.3630, the USD/CAD quotes are expected to rise. The movement is tending to 1.3660-1.3680.

An alternative could be a decrease in the USD/CAD currency pair to 1.3560-1.3530.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.262
  • Open: 107.149
  • % chg. over the last day: -0.04
  • Day’s range: 106.806  – 107.264
  • 52 wk range: 101.19  – 112.41

The USD/JPY quotes show a negative trend. The trading instrument has set new local lows. The USD/JPY currency pair has found support at 106.80. The mark of 107.05 is already a “mirror” resistance. Demand for “safe haven” currencies is still high. The yen is tending to grow. We recommend you to pay attention to the dynamics of yield on US government bonds. Positions must be opened from key levels.

The news feed on the Japanese economy is calm.

USD/JPY

Indicators point to 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 oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 106.80, 106.50
  • Resistance levels: 107.05, 107.20, 107.35

If the price fixes below 106.80, a further drop in the USD/JPY quotes is expected. The movement is tending to 106.50-106.20.

An alternative could be the growth of the USD/JPY currency pair to 107.20-107.40.

by JustForex