The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.11278
Open: 1.10741
% chg. over the last day: -0.48
Day’s range: 1.10667 – 1.10799
52 wk range: 1.0884 – 1.1623
Yesterday, the US dollar strengthened significantly against its main competitors. The fall of EUR/USD quotes exceeded 50 points. The trading tool has reached key extremes. USD demand rose amid growing prospects for a settlement of the trade conflict between Washington and Beijing. According to media reports, the parties are considering the possibility of mutual concessions in order to sign the first stage of the agreement in November. Additional support for the US currency was provided by positive data on business activity in the US non-manufacturing sector from ISM. Currently, EUR/USD quotes are consolidating in the range of 1.10650-1.10850. The EUR/USD currency pair can decline further. We recommend opening positions from key levels.
The Economic News Feed for 06.11.2019:
Composite PMI by Markit (EU) – 11:00 (GMT+2:00);
Retail Sales Volume (EU) – 12:00 (GMT+2:00);
Pay attention to the speeches by FOMC representatives.
Indicators signal the strength 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 EUR/USD.
The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also indicates a bearish sentiment.
Trading recommendations
Support levels: 1.10650, 1.10250, 1.10000
Resistance levels: 1.10850, 1.11000, 1.11200
If the price consolidates below 1.10650, expect a further drop in the EUR/USD quotes toward 1.10300-1.10100.
Alternatively, the quotes could grow toward 1.11000-1.11200.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.28834
Open: 1.28835
% chg. over the last day: -0.03
Day’s range: 1.28687 – 1.28851
52 wk range: 1.1959 – 1.3385
An ambiguous technical pattern has developed on the GBP/USD currency pair. Sterling is consolidating. There is no defined trend. At the moment, the local support and resistance levels are 1.28650 and 1.29000, respectively. Investors expect additional drivers. Demand for the US dollar remains at a fairly high level. GBP/USD quotes can decline yet. We recommend opening positions from key levels.
The Economic News Feed for 06.11.2019 is quite calm.
The price fixed below 50 MA and 100 MA, which signals the strength of sellers.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.
The Stochastic Oscillator is in the neutral zone, the %K line began to cross the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.28650, 1.28400, 1.28100
Resistance levels: 1.29000, 1.29250, 1.29700
If the price consolidates below 1.28650, expect a further decline in GBP/USD quotes.
Alternatively, the quotes could grow toward 1.29200-1.29400.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.31496
Open: 1.31550
% chg. over the last day: +0.06
Day’s range: 1.31411 – 1.31704
52 wk range: 1.2727 – 1.3664
The USD/CAD currency pair continues to trade flat. Unidirectional trends are not observed. Financial market participants took a wait and see attitude before the release of important statistics from Canada. Looney is currently testing local support and resistance levels: 1.31400 and 1.31750, respectively. USD / CAD quotes have upside potential. We recommend paying attention to the dynamics of oil quotes. Positions must be opened from key levels.
At 17:00 (GMT+2:00) Ivey will publish a Canadian PMI.
Indicators do not give accurate signals, 50 MA has crossed 100 MA.
The MACD histogram has moved into the positive zone, which indicates the growth of USD/CAD.
The Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.31400, 1.31150, 1.31000
Resistance levels: 1.31750, 1.32000
If the price consolidates above 1.31750, expect the quotes to rise toward 1.32000-1.32200.
Alternatively, the quotes could decrease toward 1.31150-1.31000.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 108.586
Open: 109.170
% chg. over the last day: +0.52
Day’s range: 108.909 – 109.118
52 wk range: 104.97 – 114.56
A pronounced upward trend is observed on the USD/JPY currency air. The trading tool has reached the key extremes. The quotes are consolidating at 108.850-109.100. The demand for safe have currencies has weakened. JPY can decline further against the USD. Keep an eye on the US government bonds and open positions from the key levels.
During the Asian trading session, Japan has published a weak report on business activity in the service industry.
The price fixed above 50 MA and 100 MA, which signals the power of buyers.
The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment.
Trading recommendations
Support levels: 108.850, 108.650, 108.500
Resistance levels: 109.100, 109.250, 109.500
If the price consolidates above 109.100, expect further growth toward 109.300-109.500.
Alternatively the quotes could decrease toward 108.650-108.500.
