The Analytical Overview of the Main Currency Pairs on 2018.02.01


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24022
  • Open: 1.24122
  • % chg. over the last day: +0.11
  • Day’s range: 1.241211.24224
  • 52 wk range: 1.0492 1.2537

Yesterday, the Fed meeting was held, which contributed to the strengthening of the US dollar. The regulator noted positive changes in the US economy and raised expectations about the inflation growth. During yesterday’s trading session, there was a variety of trends on the EUR/USD currency pair. At the moment, bearish sentiment is prevailing. The EUR/USD quotes are being traded in the range of 1.238001.24200. Positions need to be opened from the key support and resistance levels.

The news feed on 2018.02.01:

  • Data on business activity in the manufacturing sector of Germany and the UK at 10:55 (GMT+2:00) and 11:30 (GMT+2:00), respectively;ISM manufacturing PMI in the US at 17:00 (GMT+2:00).
EUR/USD

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

The MACD histogram is in the negative zone and continues to decline, which indicates the EUR/USD correction.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell EUR/USD.

Trading recommendations
  • Support levels: 1.23800, 1.23400, 1.22800
  • Resistance levels: 1.24200, 1.24600, 1.25000

If the price fixes below the support level of 1.23800, the EUR/USD correction is expected. The movement is tending potentially to 1.234001.23000.

Alternative option. If the EUR/USD quotes overcome the level of 1.24200, we recommend considering purchases. The target movement level is 1.246001.25000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.41447
  • Open: 1.41701
  • % chg. over the last day: +0.37
  • Day’s range: 1.415111.41982
  • 52 wk range: 1.2106 1.4345

Yesterday, there was a variety of trends on the GBP/USD currency pair. At the moment, the trading instrument is testing the local resistance of 1.42500. Financial markets participants took a waitandsee position before the publication of important economic reports. Positions need to be opened from the key support and resistance levels.

At 11:30 (GMT+2:00) data on business activity in the UK manufacturing sector will be published.

GBP/USD

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

The MACD histogram is in the positive zone and continues to rise, which signals the purchases of GBP/USD.

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

Trading recommendations
  • Support levels: 1.41700, 1.41000, 1.40000
  • Resistance levels: 1.42500, 1.43000

If the price has fixed above the resistance level of 1.42500, we recommend considering purchases of GBP/USD. The movement is tending potentially to 1.430001.43350.

Alternative option. If the price falls below the level of 1.41700, it is necessary to look for entry points to the market to open short positions. The target movement level is 1.412001.41000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23284
  • Open: 1.23145
  • % chg. over the last day:0.24
  • Day’s range: 1.231431.23278
  • 52 wk range: 1.2059 1.3795

At the moment, the technical pattern is ambiguous on the USD/CAD currency pair. The trading instrument is consolidating in the range of 1.230001.23300. Loonie is supported by the optimistic data on Canada’s GDP. In November, the economic growth met market expectations and amounted to 0.4%. Today we recommend you to pay attention to the news feed on the US economy. Positions must be opened from the key levels.

The publication of important economic reports from Canada is not planned.

USD/CAD

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

The MACD histogram is located near 0 zone. There are no accurate signals.

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

Trading recommendations
  • Support levels: 1.23000, 1.22700, 1.22500
  • Resistance levels: 1.23300, 1.23700, 1.24100

If the price continues to decline and fixes below the round level of 1.23000, we recommend considering sales of USD/CAD. The movement is tending potentially to 1.22500.

The alternative is the growth of USD/CAD quotes to the level of 1.237001.24000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.753
  • Open: 109.186
  • % chg. over the last day: +0.38
  • Day’s range: 109.173109.248
  • 52 wk range: 107.33 115.51

Yesterday, purchases were prevailed on the USD/JPY currency pair. The US dollar was supported by the Fed meeting results. At the moment, the key support and resistance levels are 109.200 and 109.600, respectively. We recommend paying attention to the economic reports and the dynamics of the US government bonds yield. Positions must be opened from the key levels.

The news feed on Japan’s economy is calm.

USD/JPY

The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

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

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

Trading recommendations
  • Support levels: 109.200, 108.700, 108.300
  • Resistance levels: 109.600, 110.000, 110.500

If the price fixes above the resistance level of 109.600, the USD/JPY quotes are expected to rise. The movement is tending potentially to 110.000110.200.

An alternative may be the fall of the USD/JPY currency pair to 109.000108.700.

by JustMarkets, 2018.02.01

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.