The Analytical Overview of the Main Currency Pairs on 2017.08.18


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17656
  • Open: 1.17222
  • % chg. over the last day:0.46
  • Day’s range: 1.17081 1.17578
  • 52 wk range: 1.0339 1.1909

The technical pattern on EUR/USD is currently ambiguous. The currency is traded in a fairly wide range of 1.170001.17850. Pressure on the US dollar is out by another political scandal in the White House. Yesterday there were rumors that the chairman of the National Economic Council Gary Cohn intended to resign. At the same time, demand for the euro fell significantly. The ECB protocol showed that representatives of the Central Bank are concerned about the significant strengthening of the single currency. Since the beginning of this year, the growth of the EUR/USD quotations has exceeded 11.5%. We recommend opening positions from the key levels.

The publication of important economic reports from the US and the EU is not planned today.

EUR/USD

The signals of the indicators are ambiguous. The price has crossed 50 MA and 200 MA.

The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator has reached the overbought zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.17000, 1.16500
  • Resistance levels: 1.17500, 1.17850, 1.18400

If the price fixes above the local resistance of 1.17500, we recommend considering buying EUR/USD. The target level of movement is 1.178501.18400.

Alternative option. If the EUR/USD quotes overcome the round level of 1.17000, it is necessary to look for entry points to the market for opening short positions. The movement is tending to 1.16500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28878
  • Open: 1.28649
  • % chg. over the last day:0.20
  • Day’s range: 1.28628 1.28995
  • 52 wk range: 1.1450 1.3447

Yesterday, the National Statistical Office of Great Britain published a mixed report on retail sales. At the moment, GBP/USD is consolidating. The market is waiting for additional drivers. The following key support and resistance levels can be identified: 1.28500 and 1.29000, respectively. Positions must be opened from these marks.

The news background on the UK economy is calm today.

GBP/USD

Indicators do not send accurate signals. The price is close to 50 MA, which at the moment is a fairly strong dynamic support.

The MACD histogram has begun to rise and moved to the positive zone, which indicates the growth of GBP/USD.

Stochastic Oscillator has begun to exit the overbought zone, the %K line is below the %D line, which gives a signal to send GBP/USD.

Trading recommendations
  • Support levels: 1.28500
  • Resistance levels: 1.29000, 1.29600

If the price fixes above the round level of 1.29000, we recommend you to look for entry points to the market to open long positions. The movement is tending to 1.29600.

Alternatively, GBP/USD may drop to the level of 1.28500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26130
  • Open: 1.26735
  • % chg. over the last day: +0.55
  • Day’s range: 1.26331 1.26905
  • 52 wk range: 1.2414 1.3795

Yesterday correction was observed on USD/CAD. The currency held a round level of 1.26000, which caused the bullish sentiment. The growth of the quotations exceeded 0.5%. At the moment, the technical pattern is ambiguous. The key trading range is 1.263001.26750. Investors adopted a wait and see attitude. We are waiting for statistics from Canada.

At 15:30 (GMT+3:00) a report on inflation in Canada will be published.

USD/CAD

The price is below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

Stochastic Oscillator has reached the oversold zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.26300, 1.26000
  • Resistance levels: 1.26750, 1.27300

If the statistics from Canada is positive, the downward trend on USD/CAD may continue. The movement is tending to 1.260001.25750.

An alternative may be the growth of the USD/CAD quotations to the level of 1.270001.27300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.176
  • Open: 109.566
  • % chg. over the last day:0.77
  • Day’s range: 108.958 109.580
  • 52 wk range: 99.53 118.67

Political tensions in Washington have caused a significant demand for safe currencies. Yesterday, the bearish sentiment prevailed on USD/JPY. The drop in the quotations exceeded 75 points. Today the rally of the yen has continued. At the moment, the price is testing a round level of 109,000. The trading instrument has the potential to further reduction.

The news background on the economy of Japan is calm today.

USD/JPY

The USD/JPY quotes have fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone and below the signal line, which gives a signal to sell USD/JPY.

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

Trading recommendations
  • Support levels: 109.000
  • Resistance levels: 109.600, 110.000

We believe that the USD/JPY currency pair will continue to decline. We recommend considering sales if the price fixes below the round level of 109.000. The movement is tending to 108.500.

by JustMarkets, 2017.08.18

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.