The Analytical Overview of the Main Currency Pairs on 2017.05.29


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12097
  • Open: 1.11702
  • % chg. for the last day:0.25
  • Day’s range’: 1.11608 1.11847
  • 52 wk range: 1.0366 1.1616

The US GDP report supported the demand for US currency. At the moment EUR/USD is testing the support level of 1.11600. The round level of 1.12000 is the nearest resistance. Financial markets in the US and Britain are closed due to holidays. Positions must be opened from the key levels.

The news background is calm today. We recommend paying attention to the press conference of the head of the ECB Draghi (16:00 GMT+3:00).

EUR/USD

The EUR/USD quotes are located near 200 MA, which acts as a strong dynamic resistance.

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the EUR/USD quotes increase.

Trading recommendations
  • Support levels: 1.11600, 1.11000
  • Resistance levels: 1.12000, 1.12600

If the price consolidates below the support level 1.11600, you need to look for entry points to the market to open short positions. The movement is tending potentially to the round level of 1.11000.

Alternative option. If the EUR/USD quotes overcome the level of 1.12000, we recommend considering purchases to the resistance level of 1.12600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29395
  • Open: 1.28040
  • % chg. for the last day:1.05
  • Day’s range’: 1.27945 1.28343
  • 52 wk range: 1.1986 1.5020

On Friday, the aggressive sales were observed on the GBP/USD currency pair. The pound weakened against the US dollar by more than 1%. This is due to the reduction in the leadership of the Conservative Party before of the upcoming elections on 8th June. The currency found support at 1.27850. The 1.28500 mark is the nearest resistance.

There is no important news from the UK today.

GBP/USD

The price is located below 50 MA and 200 MA, which indicates the strength of sellers.

The MACD histogram has begun to rise and fixed above the signal line, which indicates a correction of GBP/USD.

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

Trading recommendations
  • Support levels: 1.27850
  • Resistance levels: 1.28500, 1.29300

We expect a further drop in GBP/USD. If the price consolidates below 1.28150, we recommend considering sales. The immediate goal for profittaking is 1.27850.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34824
  • Open: 1.34465
  • % chg. for the last day:0.28
  • Day”s range: 1.34354 1.34657
  • 52 wk range: 1.2458 1.4692

At the moment, USD/CAD has an ambiguous technical pattern. Key support and resistance levels can be identified: 1.34400 and 1.34900. The trading during the Asian session was calm. The market is waiting for additional drivers.

The news background on Canada’s economy is calm today.

USD/CAD

Indicators do not send accurate signals. The price crossed 50 MA.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which signals a bearish sentiment on USD/CAD.

Trading recommendations
  • Support levels: 1.34400, 1.33900
  • Resistance levels: 1.34900, 1.35400

If the price overcomes the local support level of 1.34400, we recommend looking for entry points to the market in order to open short positions. The immediate goal for profit taking is 1.340001.33900.

Alternative option. If the USD/CAD quotes fix above the mark 1.34900, it is necessary to consider purchases. The movement is tending potentially to 1.35400.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.825
  • Open: 111.208
  • % chg. for the last day:0.44
  • Day’s range’: 111.151 111.471
  • 52 wk range: 99.08 123.69

On Friday, trading on USD/JPY was very active. At the same time, a unidirectional trend was not observed. At the moment, the key trading range is 110.900111.500. It is better to open positions from key levels.

Today, publication of important statistics on the economy of Japan is not planned.

USD/JPY

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

The MACD histogram has begun to rise. At the moment, the indicator is located near the 0 mark.

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

Trading recommendations
  • Support levels: 110.900, 110.300
  • Resistance levels: 111.500, 112.000

If the price consolidates above the resistance level of 111.500, we recommend buying USD/JPY. The movement is tending potentially to the round level of 112.000.

Alternative option. If the price overcomes the local support level of 110.900, the bearish sentiment may prevail on the USD/JPY currency pair. The immediate goal for taking profit is 110.300.

When tracking positions, one should use a trailing stop.

by JustMarkets, 2017.05.29

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.