The Analytical Overview of the Main Currency Pairs on 2020.09.03

The EUR/USD currency pair

• Prev Open: 1.19112
• Open: 1.18507
• % chg. over the last day: -0.48
• Day's range: 1.17891 – 1.18547
• 52 wk range: 1.0637 – 1.2012

The greenback continues to recover against its main competitors. Since the beginning of this week, the drop in EUR/USD quotes has exceeded 90 points. The trading instrument has reached key lows. At the moment, the single currency is consolidating in the range of 1.1785-1.1825. Financial market participants have taken a wait-and-see attitude before the US labor market report for August, which will be published tomorrow. Further recovery of the US currency is possible. We recommend opening positions from key levels.

• – A number of indicators on economic activity in the Eurozone at 11:00 (GMT+3:00);
• – Initial jobless claims in the US at 15:30 (GMT+3:00);
• – ISM non-manufacturing PMI at 17:00 (GMT+3:00).

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 a further correction of the EUR/USD currency pair.

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

• Support levels: 1.1785, 1.1755
• Resistance levels: 1.1825, 1.1855, 1.1880

If the price fixes below 1.1785, further correction of EUR/USD quotes is expected. The movement is tending to 1.1750-1.1720.

An alternative could be the growth of the EUR/USD currency pair to 1.1860-1.1890.

The GBP/USD currency pair

• Prev Open: 1.33848
• Open: 1.33425
• % chg. over the last day: -0.22
• Day's range: 1.32769 – 1.33564
• 52 wk range: 1.1409 – 1.3516

There is a correction movement on the GBP/USD currency pair. The British pound has updated local lows. At the moment, GBP/USD quotes are consolidating. The key range is 1.3280-1.3355. The technical pattern signals a further decline in the trading instrument. Today, we recommend paying attention to economic reports from the UK and the US. Positions should be opened from key levels.

At 11:30 (GMT+3:00), statistics on economic activity will be published in the UK.

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 has started exiting the oversold zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

• Support levels: 1.3280, 1.3220, 1.3165
• Resistance levels: 1.3355, 1.3400, 1.3480

If the price fixes below 1.3280, further correction of GBP/USD quotes is expected. The movement is tending to 1.3220-1.3200.

An alternative could be the growth of the GBP/USD currency pair to 1.3400-1.3440.

The USD/CAD currency pair

• Prev Open: 1.30608
• Open: 1.30418
• % chg. over the last day: -0.15
• Day's range: 1.30367 – 1.30991
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair is in a flat. There is no defined trend. The loonie is testing key support and resistance levels: 1.3040 and 1.3100, respectively. The trading instrument is tending to recover. Today, we recommend paying attention to economic reports from the US, as well as the dynamics of "black gold" prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), data on Canada's trade balance will be published.

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

The MACD histogram has started rising, indicating the bullish sentiment.

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

• Support levels: 1.3040, 1.2995
• Resistance levels: 1.3100, 1.3135, 1.3165

If the price fixes above 1.3100, USD/CAD quotes are expected to grow. The movement is tending to 1.3130-1.3160.

An alternative could be a decrease in the USD/CAD currency pair to 1.3010-1.2990.

The USD/JPY currency pair continues to consolidate. The technical pattern is ambiguous. Investors expect additional drivers. At the moment, the local support and resistance levels are 106.10 and 106.35, respectively. The trading instrument is tending to recover. Today, we recommend paying attention to economic releases, as well as the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is quite calm.

Indicators signal the power of buyers: the price has fixed above 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 below the %D line, which gives a signal to sell USD/JPY.

• Support levels: 106.10, 105.80, 105.60
• Resistance levels: 106.35, 106.55, 106.90

If the price fixes above 106.35, further growth in USD/JPY quotes is expected. The movement is tending to 106.60-106.90.

An alternative could be a decline in the USD/JPY currency pair to 105.80-105.60.

by JustMarkets, 2020.09.03

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.