The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.10830
Open: 1.10928
% chg. over the last day: +0.11
Day’s range: 1.10798 – 1.10995
52 wk range: 1.0879 – 1.1572

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EUR/USD currency pair continues to trade in Flat. There is no defined trend is not observed. Currently, the local support and resistance levels are 1.10750 and 1.11000, respectively. Investors took to a waiting approach before the ECB meeting. It is expected that the regulator will keep the main monetary policy parameters at the same level. We recommend you to pay attention to the comments and rhetoric of the Central Bank representatives. Open positions from key levels.

At 14:45 (GMT+2:00) the ECB will announce its key interest rate.

Indicators do not give accurate signals: the price is consolidating near 50 MA and 100 MA.

MACD histogram is near the 0 mark.

The stochastic oscillator is located in the neutral zone, the %K line is below the %D line, which gives a sell signal for EUR/USD.

Trading recommendations

Support levels: 1.10750, 1.10400
Resistance levels: 1.11000, 1.11200, 1.11450

If the price fixes below 1.10750, further decline of EUR/USD quotes is expected to 1.10400-1.10200.

Alternatively, the EUR/USD currency pair may recover to 1.11200-1.11500.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30450
Open: 1.31387
% chg. over the last day: +0.71
Day’s range: 1.31191 – 1.31509
52 wk range: 1.1959 – 1.3516

The GBP/USD currency pair is dominated by bullish sentiments. Yesterday the quotes growth exceeded 90 points. The trading instrument has set new local highs. The demand for sterling rose after the Confederation of British Industry reported about the strengthening of producer sentiment. According to Refinitiv, financial markets participants see a 50% chance of rate cuts compared to 70% on Monday. The meeting of the Bank of England is scheduled for next week. Currently, GBP/USD quotes are consolidated in the range 1.31000-1.31450. We do not rule out further strengthening of the pound against the US dollar. Open positions from key levels.

The Economic News Feed for 23.01.2020 is 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, which gives a weak signal to buy GBP/USD.

The Stochastic Oscillator is located in the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.31000, 1.30750, 1.30350
Resistance levels: 1.31450, 1.32000

If the price fixes above 1.31450, expect further growth of GBP/USD quotes to the round level of 1.32000.

Alternatively, the quotes could decrease to 1.30700-1.30400.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.30712
Open: 1.31347
% chg. over the last day: +0.57
Day’s range: 1.31326 – 1.31716
52 wk range: 1.2949 – 1.3566

Aggressive purchases are observed on the USD/CAD currency pair. The looney has overcome and strengthened above the key extremums. Yesterday, Bank of Canada kept its key interest rate at 1.75% as expected, but opened the door for a possible decline in case of slow growth. Weak inflation data and negative dynamics of oil quotes put additional pressure on the Canadian dollar. We do not rule out further growth in the trading instrument. At the moment the key range is 1.31300-1.31700. Open positions from these marks.

Today the publication of important economic releases from Canada is not planned.

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

MACD histogram is in the positive zone, which gives a signal to buy USD/CAD.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a possible correction of the USD/CAD currency pair.

Trading recommendations

Support levels: 1.31300, 1.31000, 1.30750
Resistance levels: 1.31700, 1.32000

If the price fixes above 1.31700, expect further growth toward 1.32000-1.32200.

Alternatively, the quotes could decine toward 1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 109.848
Open: 109.832
% chg. over the last day: -0.02
Day’s range: 109.503 – 109.856
52 wk range: 104.45 – 113.53

USD/JPY quotes have moved down. The trading instrument has updated the local lows. Investors started partially fixing USD positions after a long rally. Currently, USD/JPY is testing the support level at 109.500. The mark 109.700 is the nearest resistance. The trading instrument has a potential for further decline. We recommend you to pay attention to the dynamics of the US government bonds yield. Open positions from key levels.

Weak data on the trade balance of Japan was published during the Asian trading session.

The indicators signal the sellers’ strength: the price has fixed below 50 MA and 100 MA.

Histogram of MACD is in the negative zone, which indicates further correction of USD/JPY currency pair.

The Stochastic Oscillator is located in the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 109.500, 109.200, 109.000
Resistance levels: 109.700, 109.800, 110.000

If the price fixes below 109.500, expect further correction toward 109.300-109.100.

Alternatively, the quotes could grow toward 109.900-110.000.

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