The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.08043
Open: 1.07848
% chg. over the last day: -0.17
Day’s range: 1.07834 – 1.07949
52 wk range: 1.0879 – 1.1572

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The EUR/USD currency pair keeps consolidating. There is no defined trend. The trading instrument is testing local support and resistance levels at 1.07850 and 1.08250, respectively. The USA continues to publish positive economic releases. Demand for USD remains at a high level. Nevertheless, in the nearest future we do not exclude technical correction of EUR/USD quotes after a significant drop. We recommend opening positions from key levels.

The Economic News Feed for 21.02.2020:

EU Inflation Report (EU) – 12:00 (GMT+2:00);

Secondary House Market Sales (US) – 17:00 (GMT+2:00);

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

The MACD histogram is in the negative zone, but above the signal line, which gives a weak sell signal for EUR/USD.

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

Trading recommendations

Support levels: 1.07850, 1.07500
Resistance levels: 1.08250, 1.08650, 1.09000

If the price fixes below 1.07850, exoect a decline toward 1.07500-1.07300.

Alternatively, the quotes could grow toward 1.08500-1.08700.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29158
Open: 1.28796
% chg. over the last day: -0.31
Day’s range: 1.28758 – 1.28991
52 wk range: 1.1959 – 1.3516

The GBP/USD currency pair has retreated from the local lows. At the moment the technical picture is ambiguous. Sterling is testing the round level at 1.29000. The mark 1.28500 is a key support. The trading instrument has a potential for recovery. Financial markets participants are waiting for important economic reports from UK and USA. Positions should be opened from key levels.

At 11:30 (GMT+2:00) the UK will publish a number of indicators on business activity.

The indicators signal the sellers’ strength: 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 GBP/USD.

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

Trading recommendations

Support levels: 1.28500, 1.28000
Resistance levels: 1.29000, 1.29450, 1.29750

If the price fixes above the round level of 1.29000, expect the quotes to grow toward 1.29400-1.29600.

Alternatively, the quotes could descend toward 1.28300-1.28000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32283
Open: 1.32587
% chg. over the last day: +0.31
Day’s range: 1.32447 – 1.32672
52 wk range: 1.2949 – 1.3566

There is an uncertain technical pattern on the USD/CAD currency pair. The trading instrument is moving sideways. At the moment local support and resistance levels are at 1.32400 and 1.32700, respectively. USD/CAD quotes have a potential to move down. Investors are waiting for important economic releases from Canada. We also recommend paying attention to the dynamics of oil quotes. Positions should be opened from key levels.

At 15:30 (GMT+2:00) the data on retail sales in Canada will be published.

Indicators do not give an accurate signal: 50 MA crossed 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

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

Trading recommendations

Support levels: 1.32400, 1.32150, 1.31800
Resistance levels: 1.32700, 1.33000, 1.33250

If the price fixes below 1.32400, expect the quotes to fall toward 1.32000.

Alternatively, the quotes could grow toward 1.32900-1.33100.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 111.337
Open: 112.091
% chg. over the last day: +0.55
Day’s range: 111.871 – 112.185
52 wk range: 104.45 – 113.53

USD/JPY quotes show a stable upward trend. The trading instrument has updated the local highs. At the moment the yen has stabilized. Local support and resistance levels are at 111.750 and 112.250, respectively. Technical correction of USD/JPY currency pair is not ruled out in the nearest future. We expect important statistical data on the US economy. We also recommend to keep an eye on the current information about the epidemic in China. Positions should be opened from key levels.

The Economic News Feed for 21.02.2020 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 USD/JPY.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the development of a correction movement.

Trading recommendations

Support levels: 111.750, 111.200, 110.750
Resistance levels: 112.250, 112.500

If the price fixes above 112.250, expect the quotes to rise toward 112.500-112.800.

Alternatively, the quotes could correct toward 111.300-111.000.

 

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