The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.08955
Open: 1.08954
% chg. over the last day: -0.01
Day’s range: 1.08912 – 1.09387
52 wk range: 1.0777 – 1.1494
The EUR/USD currency pair has been growing. The trading instrument has updated local highs. The demand for risky assets has grown amid the gradual lifting of restrictions imposed to fight the COVID-19 epidemic worldwide. Novavax, an American biotechnology company, said it has started clinical trials of the COVID-19 vaccine, which also supports the demand for risky assets. At the moment, EUR/USD quotes are consolidating in the range of 1.0905-1.0940. We do not exclude further growth of the single currency against the greenback. We expect important economic releases from the US. Positions should be opened from key levels.
The Economic News Feed for 26.05.2020:
US consumer confidence index at 17:00 (GMT+3:00);
New home sales in the US at 17:00 (GMT+3:00).
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy EUR/USD.
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: 1.0905, 1.0870, 1.0840
Resistance levels: 1.0940, 1.0975, 1.1000
If the price fixes above 1.0940, further growth of EUR/USD quotes is expected. The movement is tending to 1.0970-1.1000.
An alternative could be a decrease in the EUR/USD currency pair to 1.0875-1.0840.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.21726
Open: 1.21825
% chg. over the last day: +0.05
Day’s range: 1.21742 – 1.22683
52 wk range: 1.1466 – 1.3516
Purchases prevail on the GBP/USD currency pair. The British pound has updated local highs. The demand for risky assets has grown significantly. At the moment, GBP/USD quotes are testing the supply zone of 1.2275-1.2300. The 1.2225 mark is already a “mirror” support. The technical pattern signals a further growth of the GBP/USD currency pair. Tensions between Washington and Beijing are still in the focus of investors’ attention. We recommend opening positions from key levels.
Indicators signal the power of buyers: the price has fixed above 100 MA.
The MACD histogram is in the positive zone and above the signal line, indicating the bullish sentiment.
Stochastic Oscillator is in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.
Trading recommendations
Support levels: 1.2225, 1.2190, 1.2160
Resistance levels: 1.2275, 1.2300, 1.2335
If the price fixes above 1.2275, further growth of GBP/USD quotes is expected. The movement is tending to 1.2300-1.2330.
An alternative could be a decrease in the GBP/USD currency pair to 1.2200-1.2170.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.39882
Open: 1.39773
% chg. over the last day: -0.07
Day’s range: 1.39123 – 1.39853
52 wk range: 1.2949 – 1.4668
USD/CAD quotes have been declining again. The trading instrument has updated local lows. At the moment, the USD/CAD currency pair is testing the 1.3910 mark. The 1.3970 mark is the key resistance. The greenback demand has weakened. The loonie is supported by the positive dynamics of the “black gold” prices. The Canadian dollar has the potential for further growth against the US currency. Positions should be opened from key levels.
We recommend paying attention to economic reports from the US.
Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.
The MACD histogram is in the negative zone, indicating the bearish sentiment.
Stochastic Oscillator is in the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.
Trading recommendations
Support levels: 1.3910, 1.3870
Resistance levels: 1.3970, 1.4000, 1.4045
If the price fixes below 1.3910, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3870-1.3850.
An alternative could be the growth of the USD/CAD currency pair to 1.4000-1.4020.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 107.572
Open: 107.664
% chg. over the last day: +0.08
Day’s range: 107.663 – 107.922
52 wk range: 101.19 – 112.41
The technical pattern is still ambiguous on the USD/JPY currency pair. A trading instrument is being traded in a flat. At the moment, USD/JPY quotes are testing the supply zone of 107.90-108.05. The 107.65 mark is the nearest support. The demand for “safe-haven” currencies has weakened significantly. The USD/JPY currency pair is tending to grow. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.
The Bank of Japan does not exclude the introduction of additional economic stimulus measures to mitigate the effects of the COVID-19 pandemic.
Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.
The MACD histogram is in the positive zone, indicating 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.
Trading recommendations
Support levels: 107.65, 107.35, 107.10
Resistance levels: 107.90, 108.05, 108.30
If the price fixes above 107.90, USD/JPY quotes are expected to rise. The movement is tending to 108.10-108.40.
An alternative could be a decrease in the USD/JPY currency pair to 107.40-107.20.
