The Analytical Overview of the Main Currency Pairs on 2020.07.28

The EUR/USD currency pair

• Prev Open: 1.16419
• Open: 1.17456
• % chg. over the last day: +0.87
• Day's range: 1.16987 – 1.17737
• 52 wk range: 1.0777 – 1.1781

During yesterday's trading session, the greenback weakened against the basket of world currencies. At the moment, the dollar index is stable. Investors have started partially fixing positions before the Fed meeting. On Monday, Senate Republicans unveiled a $1 trillion stimulus plan for the economy with the White House, laying the groundwork for negotiations with Democrats. At the moment, EUR/USD quotes are consolidating in the range of 1.1685-1.1740. A technical correction is possible in the near future. We expect economic reports from the US. We recommend opening positions from key levels.

• – CB consumer confidence index in the US at 17:00 (GMT+3:00).

Indicators do not give accurate signals: the price is testing 50 MA.

The MACD histogram has been declining, which indicates a possible correction of EUR/USD quotes.

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

• Support levels: 1.1685, 1.1625, 1.1580
• Resistance levels: 1.1740, 1.1780, 1.1800

If the price fixes above 1.1740, further growth of EUR/USD quotes is expected. The movement is tending to 1.1780-1.1800.

An alternative could be a decline in the EUR/USD currency pair to 1.1640-1.1600.

The GBP/USD currency pair

• Prev Open: 1.27854
• Open: 1.28799
• % chg. over the last day: +0.69
• Day's range: 1.28381 – 1.29043
• 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair has become stable after prolonged growth. At the moment, the British pound is consolidating. Local support and resistance levels are 1.2840 and 1.2900, respectively. A technical correction is possible in the near future. Today we recommend paying attention to economic releases from the US. Positions should be opened from key levels.

The news feed on the UK economy is calm.

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

• Support levels: 1.2840, 1.2805, 1.2760
• Resistance levels: 1.2900, 1.2950

If the price fixes above 1.2900, further growth in GBP/USD quotes is expected. The movement is tending to 1.2940-1.2960.

An alternative could be a decline in the GBP/USD currency pair to 1.2800-1.2770.

The USD/CAD currency pair

• Prev Open: 1.34217
• Open: 1.33544
• % chg. over the last day: -0.47
• Day's range: 1.33313 – 1.33905
• 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair is in a sideways trend. The technical pattern is ambiguous. Investors expect additional drivers. At the moment, the local support and resistance levels are 1.3340 and 1.3390, respectively. USD/CAD quotes are tending to recover. 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 is testing 50 MA.

The MACD histogram is near the 0 mark.

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

• Support levels: 1.3340, 1.3300
• Resistance levels: 1.3390, 1.3440, 1.3480

If the price fixes below 1.3340, a further fall in USD/CAD quotes is expected. The movement is tending to 1.3310-1.3290.

An alternative could be a recovery of the USD/CAD currency pair to 1.3440-1.3480.

The bearish sentiment still prevails on the USD/JPY currency pair. The trading instrument has updated its local lows again. At the moment, USD/JPY quotes are consolidating. Local support and resistance levels are 105.40 and 105.80, respectively. The yen has the potential for further growth. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Today, the news feed on Japan's economy is calm.

Indicators do not give accurate signals: the price is testing 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, which indicates the bearish sentiment.

• Support levels: 105.40, 105.10
• Resistance levels: 105.80, 106.15, 106.45

If the price fixes below 105.40, a further drop in USD/JPY quotes is expected. The movement is tending to 105.10-104.80.

An alternative could be the growth of the USD/JPY currency pair to 106.10-106.30.

JustMarkets, 28.07.2020

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.