The Analytical Overview of the Main Currency Pairs on 2020.07.24

The EUR/USD currency pair

• Prev Open: 1.15687
• Open: 1.15915
• % chg. over the last day: +0.22
• Day's range: 1.15912 – 1.16213
• 52 wk range: 1.0777 – 1.1494

The bullish sentiment prevails on the EUR/USD currency pair. Quotes have updated local highs again. The demand for the single currency is still high. It should be recalled that earlier EU leaders agreed on a stimulus package for the recovery of the region's economy. Positive data on economic activity in Germany and the Eurozone support the euro. Relations between the US and China continue to escalate. China has ordered US consulate closure in Chengdu in response to Washington's demand to close the PRC consulate in Houston. We recommend opening positions from key levels.

• – New home sales in the US at 17:00 (GMT+3:00).

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: 1.1575, 1.1540, 1.1500
• Resistance levels: 1.1625, 1.1660

If the price fixes above 1.1625, further growth of EUR/USD quotes is expected. The movement is tending to 1.1650-1.1670.

An alternative could be a decline in the EUR/USD currency pair to 1.1540-1.1500.

The GBP/USD currency pair

• Prev Open: 1.27159
• Open: 1.27323
• % chg. over the last day: +0.06
• Day's range: 1.27163 – 1.27736
• 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair continues to consolidate. There is no defined trend. The British pound is testing local support and resistance levels: 1.2715 and 1.2765, respectively. The demand for greenback is still low. GBP/USD quotes have the potential for further growth. We recommend paying attention to the news feed on the US economy. Positions should be opened from key levels.

The UK published positive data on economic activity.

The 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 above the %D line, which indicates the bullish sentiment.

• Support levels: 1.2715, 1.2670, 1.2635
• Resistance levels: 1.2765, 1.2800

If the price fixes above 1.2765, further growth in GBP/USD quotes is expected. The movement is tending to 1.2800-1.2830.

An alternative could be a decline in the GBP/USD currency pair to 1.2670-1.2640.

The USD/CAD currency pair

• Prev Open: 1.34118
• Open: 1.34107
• % chg. over the last day: -0.01
• Day's range: 1.33770 – 1.34451
• 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable after a prolonged fall. The loonie is currently consolidating. Local support and resistance levels are 1.3400 and 1.3445, respectively. The technical pattern signals a possible correction of a trading instrument. We recommend paying attention to the dynamics of "black gold" prices. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram has moved into the positive zone, which indicates a possible correction.

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

• Support levels: 1.3400, 1.3350
• Resistance levels: 1.3445, 1.3480, 1.3500

If the price fixes below 1.3400, USD/CAD quotes are expected to fall further. The movement is tending to 1.3350-1.3320.

An alternative could be a recovery of the USD/CAD currency pair to 1.3480-1.3520.

USD/JPY quotes show a negative trend. The trading instrument has set new local lows. At the moment, the USD/JPY currency pair is consolidating in the range of 106.20-106.45. Demand for safe-haven currencies is still high amid growing tensions between Washington and Beijing. The yen has the potential for further growth against the greenback. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Today, Japan's financial markets are closed due to the holiday.

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.

• Support levels: 106.20, 105.80
• Resistance levels: 106.45, 106.70, 106.90

If the price fixes below 106.20, a further fall in USD/JPY quotes is expected. The movement is tending to 105.80-105.60.

An alternative could be the growth of the USD/JPY currency pair to 106.70-106.90.

JustMarkets, 24.07.2020

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.