The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.10583
Open: 1.10421
% chg. over the last day: -0.14
Day’s range: 1.10337 – 1.10457
52 wk range: 1.0879 – 1.1572
The technical picture on the EUR/USD currency pair is ambiguous. At the moment the trading instrument is being consolidated. Investors are waiting for additional drivers. The local support and resistance levels are 1.10300 и 1.10500, respectively. Today, participants in financial markets will assess important economic releases from the United States. We recommend opening positions from key levels.
The Economic News Feed for 05.02.2020:
Composite business activity index from Markit (EU) – 11:00 (GMT+2:00);
Retail sales volume (EU) – 12:00 (GMT+2:00);
Change in the employment numbers in the non-agricultural sector from ADP (US) – 15:15 (GMT+2:00);
ISM’s supply manager index for the non-agricultural sector (US) – 17:00 (GMT+2:00);
The indicators do not give an accurate signal: 50 MA started crossing 100 MA.
MACD is in the negative zone, which indicates a bearish sentiment.
The Stochastic Oscillator is in the oversold area, the %K line is above the %D line, which gives a signal to buy EUR/USD.
Trading recommendations
Support levels: 1.10300, 1.10100, 1.09900
Resistance levels: 1.10500, 1.10650, 1.10950
If the price fixes above 1.10500, EUR/USD quotes are expected to rise to 1.10700-1.10900.
Alternatively, the quotes could descend toward EUR/USD currency pair to 1.10100-1.09900.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.29894
Open: 1.30316
% chg. over the last day: -0.27
Day’s range: 1.30088 – 1.30379
52 wk range: 1.1959 – 1.3516
GBP/USD quotes have retreated from local lows. At the moment the technical pattern is ambiguous. Sterling tests local support and resistance levels: 1.30050 and 1.30450, respectively. The trading instrument has potential for further recovery. Investors are waiting for important economic releases from UK. We also recommend you to pay attention to the news background on the US economy. Positions should be opened from key levels.
The UK news feed is calm.
Indicators do not give accurate signals: the price consolidates near 50 MA.
MACD is near the 0 mark.
The Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, indicating a correction in GBP/USD quotes.
Trading recommendations
Support levels: 1.30050, 1.29800, 1.29450
Resistance levels: 1.30450, 1.30850, 1.31100
If the price fixes below 1.30050, you should consider selling GBP/USD.
Alternatively, the quotes could grow toward 1.30800-1.31000
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.32869
Open: 1.32765
% chg. over the last day: -0.02
Day’s range: 1.32758 – 1.32981
52 wk range: 1.2949 – 1.3566
USD/CAD currency pair has stabilized after a long rally. At the moment, the CAD is in sideways motion. The local support and resistance levels are: 1.32650 and 1.33000, respectively. Technical correction is not ruled out in the nearest future. Today we recommend you to pay attention to the dynamics of oil quotations, as well as to economic releases from the United States. Positions should be opened from key levels.
The Economic News Feed for 05.02.2020:
Trade balance (CAD) – 15:30 (GMT+2:00)
The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.
Histogram of MACD is in the positive zone, which indicates a bullish sentiment.
The Stochastic Oscillator is located near the overbought zone, the %K line is above the %D line, which indicates that the price is above 50 MA and 100 MA.
Trading recommendations
Support levels: 1.32650, 1.32450, 1.32200
Resistance levels: 1.33000, 1.33400
If the price fixes above 1.33000, expect further growth toward 1.33300-1.33500.
Alternatively, the quotes could correct toward 1.32300-1.32100.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 108.687
Open: 109.515
% chg. over the last day: +0.69
Day’s range: 109.317 – 109.516
52 wk range: 104.45 – 113.53
Yesterday aggressive purchases were observed on USD/JPY currency pair. The growth of quotations exceeded 80 points. The trading instrument has set new local maximums. Demand for currencies save haven currencies has shrunk as investors have been encouraged by the Chinese government’s measures to to contain the coronavirus and limit its economic impact. At the moment, the USD/JPY currency pair is consolidating in the range 109.250-109.550. We do not rule out further weakening of the yen against USD. Positions should be opened from of key levels.
The news background on the Japanese economy is quite calm.
The indicators signal the strength 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. It’s a weak signal to buy USD/JPY.
The Stochastic Oscillator is located in the neutral zone, the line %K is below the line %D, which indicates a bearish sentiment.
Trading recommendations
Support levels: 109.250, 109.100, 108.800
Resistance levels: 109.550, 109.750, 110.000
If the price fixes above 109.550, expect further growth of USD/JPY quotes toward 110.000.
Alternatively, the USD/JPY pair may decline to 109.000-108.800.
