The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.12087
Open: 1.11714
% chg. over the last day: -0.37
Day’s range: 1.11640 – 1.11785
52 wk range: 1.0879 – 1.1572
The EUR/USD currency pair has been declining. The trading instrument has set new local lows. At the moment, EUR/USD quotes are testing local support of 1.11650. Round level of 1.12000 is the nearest resistance. The current technical pattern signals a further correction of the EUR/USD currency pair. Sentiment in financial markets has improved amid prospects for a settlement of the trade conflict between Washington and Beijing. Donald Trump set January 15 as the date of signing the phase one trade deal with China. We expect important economic releases. We recommend opening positions from key levels.
The Economic News Feed for 03.01.2020:
Labor market report in Germany at 10:55 (GMT+2:00);
ISM manufacturing PMI in the US at 17:00 (GMT+2:00).
The price has fixed below 100 MA, which signals the power of sellers.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.
Trading recommendations
Support levels: 1.11650, 1.11400, 1.11100
Resistance levels: 1.12000, 1.12350
If the price fixes below 1.11650, further correction of the EUR/USD quotes is expected. The movement is tending to 1.11400-1.11200.
An alternative could be the growth of the EUR/USD currency pair to 1.12250-1.12500.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.32482
Open: 1.31367
% chg. over the last day: -0.81
Day’s range: 1.31054 – 1.31602
52 wk range: 1.1959 – 1.3516
The bearish sentiment is prevailing on the GBP/USD currency pair. During yesterday’s and today’s trading sessions, the drop in quotes exceeded 130 points. The trading instrument has reached local lows. The British pound is currently consolidating in the range of 1.31000-1.31600. The GBP/USD currency pair has the potential for further decline. Market participants expect up-to-date information on Brexit. Positions should be opened from key levels.
At 11:30 (GMT+2:00), construction PMI will be published in the UK.
Indicators do not give accurate signals: the price has crossed 100 MA.
The MACD histogram is in the negative zone and continues to decline, which indicates the bearish sentiment.
Stochastic Oscillator has reached the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.31000, 1.30550, 1.30000
Resistance levels: 1.31600, 1.32250
If the price fixes below the round level of 1.31000, further decline in GBP/USD quotes is expected. The movement is tending to 1.30600-1.30400.
An alternative could be the growth of the GBP/USD currency pair to 1.32000-1.32300.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.29858
Open: 1.29851
% chg. over the last day: -0.01
Day’s range: 1.29755 – 1.29993
52 wk range: 1.2949 – 1.3566
The USD/CAD currency pair has become stable after a continuous fall. The trading instrument is currently consolidating. Unidirectional trend is not observed. The key range is 1.29600-1.30100. Demand for the Canadian dollar is still at a fairly high level amid positive dynamics of oil prices. We do not exclude a further decline in the USD/CAD currency pair. We recommend opening positions from key levels.
The news feed on the Canada’s economy is calm.
Indicators do not give accurate signals: the price has crossed 50 MA.
The MACD histogram is near the 0 mark. There are no signals at the moment.
Stochastic Oscillator is near the overbought zone, the %K line has crossed the %D line. There are no accurate signals.
Trading recommendations
Support levels: 1.29600, 1.29200
Resistance levels: 1.30100, 1.30500, 1.30800
If the price fixes below the support level of 1.29600, a further drop in the USD/CAD quotes is expected. The movement is tending to 1.29300-1.29100.
An alternative could be the growth of the USD/CAD currency pair to 1.30400-1.30600.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 108.727
Open: 108.558
% chg. over the last day: -0.14
Day’s range: 108.005 – 108.630
52 wk range: 104.45 – 113.53
There are aggressive sales on the USD/JPY currency pair. During yesterday’s and today’s trading session, the drop in quotes exceeded 60 points. At the moment, the trading instrument is testing a round level of 108.000. The 108.300 mark is already a “mirror” resistance. Demand for “safe haven” currencies is still high due to rising tensions in the Middle East. The USD/JPY quotes have the potential for further decline. Today, we recommend paying attention to economic reports from the US. Positions should be opened from key levels.
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 and below the signal line, which gives a strong signal to sell USD/JPY.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.
Trading recommendations
Support levels: 108.000, 107.600
Resistance levels: 108.300, 108.500, 108.850
If the price fixes below the round level of 108,000, a further drop in the USD/JPY quotes is expected. The movement is tending to 107.700-107.500.
An alternative could be the growth of the USD/JPY currency pair to 108.500-108.700.
