The Analytical Overview of the Main Currency Pairs on 2018.05.10


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18567
  • Open: 1.18494
  • % chg. over the last day:0.14
  • Day’s range: 1.185681.18717
  • 52 wk range: 1.05711.2557

There is an ambiguous technical pattern on the EUR/USD currency pair. The trading instrument is in a sideways trend. Financial market participants expect a report on inflation in the US. At the moment, local support and resistance levels are: 1.18500 and 1.19000, respectively. We recommend opening positions from these marks.

The news feed on 2018.05.10:
  • Core consumer price index in the US at 15:30 (GMT+3:00).
EUR/USD

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

The MACD histogram is near the 0 mark. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 1.18500, 1.18150
  • Resistance levels: 1.19000, 1.19500, 1.20000

If the price fixes below the support level of 1.18500, further decline in the EUR/USD quotes is expected. The movement is tending potentially to 1.181501.17700.

Alternative option. If the price fixes above the round level of 1.19000, it is necessary to consider purchases of EUR/USD. The target movement level is 1.195001.19700.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35488
  • Open: 1.35447
  • % chg. over the last day:0.01
  • Day’s range: 1.354361.35516
  • 52 wk range: 1.23611.4345

At the moment, the technical pattern on the GBP/USD currency pair is ambiguous. Financial market participants took a waitandsee attitude before the decision of the Bank of England on the key interest rate. It is expected that the regulator will leave the interest rate unchanged at 0.50%. At the moment, the trading instrument is consolidating in the range of 1.354001.35800. Positions must be opened from these levels.

The news feed on 2018.05.10:
  • Manufacturing production in the UK at 11:30 (GMT+3:00);
  • Bank of England inflation report at 14:00 (GMT+3:00);
  • Bank of England interest rate decision at 14:00 (GMT+3:00).
GBP/USD

The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is near the 0 mark. There are no signals.

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

Trading recommendations
  • Support levels: 1.35400, 1.35000
  • Resistance levels: 1.35800, 1.36300, 1.37000

If the price fixes below the support level of 1.35400, the GBP/USD quotes are expected to decline. The movement is tending potentially to 1.350001.34800.

Alternative option. If the price fixes above the resistance level of 1.35800, the GBP/USD currency pair is expected to rise to 1.363001.36500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29487
  • Open: 1.28519
  • % chg. over the last day:0.77
  • Day’s range: 1.277421.28221
  • 52 wk range: 1.2059 1.3795

There are aggressive sales on the USD/CAD currency pair. During yesterday’s and today’s trading sessions, the drop in quotes exceeded 150 points. Such a decline is likely caused by technical factors, as well as the “black gold” prices growth. At the moment, the key support and resistance levels are 1.27700 and 1.28200, respectively. The positions must be opened from these marks.

Today, important economic reports from Canada are not expected to be published.

USD/CAD

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

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

Stochastic Oscillator is located near the oversold zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.27700, 1.27300
  • Resistance levels: 1.28200, 1.28700, 1.29100

If the price fixes below the support of 1.27700, further decrease of the USD/CAD quotes is expected. The movement is tending potentially to 1.273001.27000.

Alternative option. If the price fixes above the resistance of 1.28200, it is necessary to consider purchases of USD/CAD. The movement is tending potentially to 1.287001.29100.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.122
  • Open: 109.710
  • % chg. over the last day: +0.66
  • Day’s range: 109.679109.738
  • 52 wk range: 104.56114.74

The USD/JPY currency pair has continued to grow. The growth of quotes has already exceeded 90 points. The US dollar is supported by the 10year US government bonds yield growth. At the moment, the key support and resistance levels are: 109.800 and 110.000, respectively. The positions must be opened from these marks. The trading instrument has the potential for further growth.

The news feed on Japan’s economy is calm.

USD/JPY

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

The MACD histogram is in the positive zone and continues to rise, which gives a strong signal to buy USD/JPY.

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

Trading recommendations
  • Support levels: 109.800, 109.500, 109.200
  • Resistance levels: 110.000, 110.500

If the price fixes above the round level of 110.000, further growth of the USD/JPY currency pair is expected. The movement is tending potentially to 110.400110.600.

Alternative option. If the price fixes below the already “mirror” support of 109.800, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 109.500109.200.

by JustMarkets, 2018.05.10

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.