The Analytical Overview of the Main Currency Pairs on 2017.09.27


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18465
  • Open: 1.17919
  • % chg. over the last day:0.54
  • Day’s range: 1.17425 1.17954
  • 52 wk range: 1.0341 1.2069

The “bearish” sentiment still prevails on EUR/USD. Yesterday, the drop in quotations exceeded 0.5%. Demand for the US dollar remains at a high level. The Fed’s Chairman Janet Yellen said that the gradual increase in the range of the key interest rate would be appropriate, despite the low level of inflation in the country. Today, the attention is focused on Donald Trump’s speech on tax reform and economic reports from the United States. At the moment, the key trading range on the EUR/USD currency pair is 1.174001.17900.

News background on the US economy on 2017.09.27:

  • Statistics on orders for durable goods at 15:30 (GMT+3:00);
  • The index of pending in the real estate market at 17:00 (GMT+3:00).
EUR/USD

Indicators still point to the power of sellers. The price is below 50 MA and 200 MA.

The MACD histogram is fixed in the negative zone and continues to decline, which signals a bearish sentiment on EUR/USD.

Stochastic Oscillator has reached oversold zone, the %K line is below the %D line, which gives a weak signal to sell EUR/USD.

Trading recommendations
  • Support levels: 1.17400, 1.17000
  • Resistance levels: 1.17900, 1.18600

If the price fixes below the local support of 1.17400, we expect a further drop in the EUR/USD quotes. The movement is tending to the round level of 1.17000.

Alternative option. If the EUR/USD quotes overcome the level of 1.17900, we recommend looking for entry points to the market to open long positions. The target movement level is 1.182501.18400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34462
  • Open: 1.34548
  • % chg. over the last day:0.19
  • Day’s range: 1.33639 1.34614
  • 52 wk range: 1.1450 1.3618

Today there are aggressive sales of GBP/USD. At the moment, the pound weakened against the US dollar by more than 80 points. The currency found support at 1.33700. The trading instrument has formed a local offer zone of 1.345001.34750. The GBP/USD currency pair has the potential for further correction. We recommend paying attention to the news background on the US economy.

There are no important economic reports from the UK today.

GBP/USD

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

The MACD histogram has fixed in the negative zone and continues to decline, which indicates a drop in GBP/USD.

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: 1.33700, 1.33000
  • Resistance levels: 1.34750, 1.36000

If the price fixes below 1.33700, we expect a further correction of the GBP/USD currency pair. The target movement level is 1.33000.

Alternative option. If the price fixes above the level of 1.34500, we recommend considering buying GBP/USD. The movement is tending to the round level of 1.35000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23678
  • Open: 1.23370
  • % chg. over the last day:0.05
  • Day’s range: 1.23284 1.23890
  • 52 wk range: 1.2059 1.3795

Yesterday’s trading on USD/CAD was quite active. At the same time, a unidirectional trend was not observed. At the moment, the technical pattern is ambiguous. The key levels of support and resistance are still 1.23500 and 1.24000 respectively. Investors adopted a waitandsee position before the head of the Bank of Canada Poloz’s speech at 18:45 (GMT+3:00).

We recommend paying attention to economic reports from the USA.

USD/CAD

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 located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.23500, 1.23100
  • Resistance levels: 1.24000

If the price fixes above the round level of 1.24000, we recommend looking for entry points to the market to open long positions. The movement is tending to 1.245001.24750.

Alternative option. If the USD/CAD quotes overcome the mark of 1.23500, it is necessary to consider sales. The target movement level is 1.231001.23000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.719
  • Open: 112.207
  • % chg. over the last day: +0.58
  • Day’s range: 112.207 112.289
  • 52 wk range: 99.53 118.67

Yesterday the USD/JPY currency pair retained the key support of 111.500, which triggered the bullish sentiment. Today, the yen continued to lose ground against the US dollar. At the moment, the price is testing the resistance level of 112.700. The nearest support is at around 112.200. We recommend you to pay attention to the economic reports and the US government bonds yield.

Today, the news background on the Japanese economy is calm.

USD/JPY

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone and above the signal line, which indicates the growth of the USD/JPY currency pair.

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

Trading recommendations
  • Support levels: 112.200, 111.500
  • Resistance levels: 112.700

If the price fixes above the resistance level of 112.700, we recommend considering buying USD/JPY. The movement is tending to 113.000113.250.

Alternative option. If the USD/JPY quotes overcome the level of 112.200, it is necessary to search for entry points to the market for opening short positions. The movement is tending to 111.800111.600.

by JustMarkets, 2017.09.27

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.