The Analytical Overview of the Main Currency Pairs on 2020.08.19

The EUR/USD currency pair

• Prev Open: 1.18697
• Open: 1.19296
• % chg. over the last day: +0.51
• Day's range: 1.19279 – 1.19527
• 52 wk range: 1.0777 – 1.1781

The greenback continues to lose ground against a basket of world currencies. The dollar index (#DX) has updated two-year lows. At the moment, EUR/USD quotes are consolidating. The key range is 1.1920-1.1965. Financial market participants have taken a wait-and-see attitude before the publication of the FOMC minutes. This report may have a significant impact on the further alignment of forces on the currency majors. Former Vice President of the United States, Joe Biden, was elected as the Democratic presidential candidate. Positions should be opened from key levels.

• – Consumer price index in the Eurozone at 12:00 (GMT+3:00);
• – Publication of the FOMC minutes at 21:00 (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, which indicates 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.

• Support levels: 1.1920, 1.1880, 1.1855
• Resistance levels: 1.1965, 1.2000

If the price fixes above 1.1965, further growth of EUR/USD quotes is expected. The movement is tending to 1.2000-1.2020.

An alternative could be a decline in the EUR/USD currency pair to 1.1880-1.1860.

The GBP/USD currency pair

• Prev Open: 1.30985
• Open: 1.32299
• % chg. over the last day: +1.02
• Day's range: 1.32272 – 1.32673
• 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 growth of quotes exceeded 150 points. The British pound has overcome and fixed above the key extremes. At the moment, the trading instrument is consolidating in the range of 1.3225-1.3270. In the near future, a technical correction is possible. We expect the FOMC minutes. Positions should be opened from key levels.

The UK has published quite optimistic inflation data.

Indicators point to the power of buyers: the price has fixed above 50 MA and 100 MA.

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy GBP/USD.

• Support levels: 1.3225, 1.3200, 1.3170
• Resistance levels: 1.3270, 1.3300

If the price fixes above 1.3270, further growth in GBP/USD quotes is expected. The movement is tending to 1.3300-1.3340.

An alternative could be a decline of the GBP/USD currency pair to 1.3180-1.3140.

The USD/CAD currency pair

• Prev Open: 1.32118
• Open: 1.31622
• % chg. over the last day: -0.36
• Day's range: 1.31515 – 1.31747
• 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable. The loonie is consolidating. The FOMC minutes are in the spotlight. At the moment, the local support and resistance levels are 1.3150 and 1.3190, respectively. We also recommend paying attention to the report on inflation in Canada and the dynamics of "black gold" prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), inflation data will be published in Canada.

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

The MACD histogram is in the negative zone, which indicates 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: 1.3150, 1.3130, 1.3100
• Resistance levels: 1.3190, 1.3230, 1.3270

If the price fixes below 1.3150, USD/CAD sales should be considered. The movement is tending to the round level of 1.3100.

An alternative could be the growth of the USD/CAD currency pair to 1.3220-1.3250.

USD/JPY quotes have become stable after a prolonged fall. At the moment, the trading instrument is consolidating. The key support and resistance levels are 105.15 and 105.60, respectively. In the near future, a technical correction is possible. We expect the FOMC minutes. We also recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Japan has published ambiguous statistics on the trade balance.

Indicators signal the power of sellers: the price has fixed below 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 USD/JPY.

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

• Support levels: 105.15, 104.80
• Resistance levels: 105.60, 105.85, 106.05

If the price fixes below 105.15, a further fall in USD/JPY quotes is expected. The movement is tending to 104.80-104.60.

An alternative could be the growth of the USD/JPY currency pair to 105.90-106.10.

by JustMarkets, 2020.08.19

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.