The Analytical Overview of the Main Currency Pairs on 2020.07.21

July 21, 2020

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14102
  • Open: 1.14439
  • % chg. over the last day: +0.13
  • Day’s range: 1.14230 – 1.14697
  • 52 wk range: 1.0777  – 1.1494

The EUR/USD currency pair has become stable. At the moment, the trading instrument is consolidating. The key range is 1.1415-1.1470. EU leaders have agreed on a plan and budget for economic recovery in the region, which has been affected by the coronavirus pandemic. Sentiment in financial markets has improved after Oxford University reported significant advances in the development of a vaccine for COVID-19. The demand for risky assets is still high. Further growth of EUR/USD quotes is possible. We recommend opening positions from key levels.

The publication of important economic releases is not planned today.

EUR/USD

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

The MACD histogram is near the 0 mark.


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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: 1.1415, 1.1370, 1.1325
  • Resistance levels: 1.1470, 1.1500

If the price fixes above 1.1470, further growth in EUR/USD quotes is expected. The movement is tending to 1.1500-1.1520.

An alternative could be a decline in the EUR/USD currency pair to 1.1380-1.1360.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25530
  • Open: 1.26567
  • % chg. over the last day: +0.72
  • Day’s range: 1.26502 – 1.27162
  • 52 wk range: 1.1466  – 1.3516

There are aggressive purchases on the GBP/USD currency pair. During yesterday’s and today’s trading sessions, the British pound added more than 160 points in price against the greenback. The trading instrument has set new local highs. At the moment, GBP/USD quotes are consolidating in the range of 1.2665-1.2715. The demand for risky assets is still high. The pound has the potential for further growth. Positions should be opened from key levels.

The news feed on the UK economy is calm.

GBP/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 GBP/USD.

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: 1.2665, 1.2625, 1.2590
  • Resistance levels: 1.2715, 1.2750

If the price fixes above 1.2715, further growth in GBP/USD quotes is expected. The movement is tending to 1.2750-1.2770.

An alternative could be a decline in the GBP/USD currency pair to 1.2630-1.2600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35690
  • Open: 1.35359
  • % chg. over the last day: -0.29
  • Day’s range: 1.34847 – 1.35364
  • 52 wk range: 1.2949  – 1.4668

USD/CAD quotes show a negative trend. During yesterday’s and today’s trading sessions, the loonie added more than 80 points in price. At the moment, the trading instrument is testing the local support of 1.3485. The 1.3520 mark is already a “mirror” resistance. A further decline in the USD/CAD currency pair is possible. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), a report on retail sales will be published in Canada.

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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3485, 1.3450, 1.3420
  • Resistance levels: 1.3520, 1.3540, 1.3565

If the price fixes below 1.3485, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3460-1.3440.

An alternative could be the growth of the USD/CAD currency pair to 1.3540-1.3560.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.092
  • Open: 107.204
  • % chg. over the last day: +0.15
  • Day’s range: 107.127 – 107.367
  • 52 wk range: 101.19  – 112.41

The technical pattern on the USD/JPY currency pair is still ambiguous. The trading instrument is in a sideways trend. The key support and resistance levels are 107.10 and 107.40, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of the US government bonds yield. Positions should be opened from key levels.

Japan’s national core consumer price index remained unchanged in June.

USD/JPY

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 107.10, 106.95, 106.80
  • Resistance levels: 107.40, 107.60, 108.00

If the price fixes below 107.10, USD/JPY quotes are expected to fall. The movement is tending to 106.80-106.60.

An alternative could be the growth of the USD/JPY currency pair to 107.60-107.90.

by JustForex