The Analytical Overview of the Main Currency Pairs on 2017.07.06


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13408
  • Open: 1.13135
  • % chg. over the last day: +0.02
  • Day’s range: 1.13132 1.13572
  • 52 wk range: 1.0366 1.1616

The FOMC protocol showed that representatives of the Federal Reserve didn’t see eye to eye on the implementation of the program to reduce assets on the balance of the Central Bank. The probability of increasing the range of the Fed’s key interest rate in December 2017 decreased to 47.4%. At the moment, the technical pattern on EUR/USD is ambiguous. The key trading range is 1.131501.13750. We are waiting for statistics from the USA.

The economic calendar on 2017.07.06:
  • aganalyticsPreliminary report on the labor market in the US from ADP at 15:15 (GMT+3:00);
  • aganalyticsThe index of business activity in the nonmanufacturing sector of the US from ISM at 17:00 (GMT+3:00).
EUR/USD

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

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

Stochastic Oscillator is located near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.13150, 1.12550
  • Resistance levels: 1.13750, 1.14400

If the statistics from the US is upbeat, sales may prevail on the EUR/USD currency pair. The target level of movement is 1.126001.12500.

An alternative may be the growth of the EUR/USD quotations to the level of 1.140001.14400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29160
  • Open: 1.29297
  • % chg. over the last day: +0.09
  • Day’s range: 1.28833 1.29468
  • 52 wk range: 1.1986 1.5020

Since the beginning of this week, GBP/USD is in a sideways trend. A unidirectional trend is not observed. Key support and resistance levels can be identified: 1.29000 and 1.29600, respectively. Pressure on the pound is caused by weak statistics on business activity in the UK.

We recommend paying attention to economic reports from the USA.

GBP/USD

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

The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.29000, 1.28300
  • Resistance levels: 1.29600, 1.30250

If the statistics from the US turns out to be weak, a bullish sentiment may prevail on the GBP/USD currency pair. The movement is tending potentially towards the resistance level of 1.30250.

An alternative may be a downward trend on GBP/USD to around 1.28300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29319
  • Open: 1.29551
  • % chg. over the last day: +0.20
  • Day’s range: 1.29380 1.29837
  • 52 wk range: 1.2458 1.4692

Yesterday, a correction movement was observed on USD/CAD. The currency has reached a round level of 1.30000. The closest support is the mark of 1.29150. At the moment, the oil price is recouping after a sharp fall in the course of yesterday’s trading, which supports the Canadian dollar. We expect economic reports from the USA.

The news background on Canada’s economy is rather calm today:

  • aganalyticsBuilding permits aganalytics15:30 (GMT+3:00);
  • aganalyticsThe balance of visible trade aganalytics15:30 (GMT+3:00).
USD/CAD

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.29150
  • Resistance levels: 1.30000, 1.30500

If economic reports from the US prove to be positive, the correction on USD/CAD may continue. The movement is tending potentially to 1.302501.30500.

Alternatively, USD/CAD may fall to around 1.290001.28750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.154
  • Open: 113.249
  • % chg. over the last day:0.07
  • Day’s range: 112.883 113.388
  • 52 wk range: 99.08 123.69

Yesterday’s trading on USD/JPY was very active. At the same time, a unidirectional trend did not appear. At the moment, the technical pattern is ambiguous. The key trading range is 112.850113.600. Investors expect economically reports from the US.

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

USD/JPY

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

The MACD histogram has begun to rise and fixed above the signal line, which signals an increase of the USD/JPY currency pair.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.

Trading recommendations
  • Support levels: 112.850, 112.150
  • Resistance levels: 113.600

If the statistics from the US is optimistic, the upward trend in USD/JPY may continue. The movement is tending potentially to the round level of 114.000.

An alternative may be the correction of the USD/JPY quotations to the level of 112.800112.500.

by JustMarkets, 2017.07.06

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.