The Analytical Overview of the Main Currency Pairs on 2018.05.04


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19502
  • Open: 1.19872
  • % chg. over the last day: +0.32
  • Day’s range: 1.195851.19658
  • 52 wk range: 1.05711.2557

Yesterday it became known that inflation in the Eurozone slowed down to 1.2% (y/y) against 1.3% (y/y) in March. However, Euro did not respond to this fact. At the moment, the technical pattern on the EUR/USD currency pair is ambiguous. Investors expect a report on the US labor market, which may have a significant impact on the dynamics of major currency pairs. Local support and resistance levels are: 1.19500 and 1.19900, respectively. We recommend opening the positions from these marks.

The news feed on 2018.05.04:
  • Statistics on the US labor market at 15:30 (GMT+3:00).
EUR/USD

The price is testing 50 MA, which is strong dynamic resistance.

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

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

Trading recommendations
  • Support levels: 1.19500, 1.19000
  • Resistance levels: 1.19900, 1.20600, 1.21200

If the price fixes below the support of 1.19500, the EUR/USD quotes are expected to decline. The movement is tending potentially to the round level of 1.19000.

Alternative option. If the price fixes above the resistance level of 1.19900, it is necessary to consider purchases of EUR/USD. The target movement level is 1.205001.20750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35707
  • Open: 1.35732
  • % chg. over the last day:0.04
  • Day’s range: 1.355461.35697
  • 52 wk range: 1.23611.4345

The technical pattern is still ambiguous on the GBP/USD currency pair. In the near future, a technical correction is not ruled out. Investors expect additional drivers. At the moment, trading instrument is moving in the range of 1.354001.36000. Positions need to be opened from the key support and resistance levels.

The news feed on the UK economy is calm.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.35400, 1.35000
  • Resistance levels: 1.36000, 1.36550, 1.37500

If the price fixes below the support level of 1.35600, the GBP/USD quotes are expected to decline. The movement is tending potentially to the round level of 1.35000.

An alternative may be the growth of the GBP/USD currency pair to 1.365501.36700.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28767
  • Open: 1.28460
  • % chg. over the last day:0.26
  • Day’s range: 1.286071.28695
  • 52 wk range: 1.2059 1.3795

The USD/CAD currency pair has been trading in a flat for a long time. A unidirectional trend is not observed. Strong support and resistance levels were formed over the past week: 1.28200 and 1.29000, respectively. At the moment, the USD/CAD quotes are consolidating in the range of 1.285001.28800. Statistics on the US labor market are in the focus of attention. Positions must be opened from the key levels.

At 17:00 (GMT+3:00) the index of business activity from Ivey will be published.

USD/CAD

Indicators do not send accurate signals: 50 MA crossed 200 MA.

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

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

Trading recommendations
  • Support levels: 1.28500, 1.28200, 1.28000
  • Resistance levels: 1.28800, 1.29000, 1.29400

If the price fixes above the resistance of 1.28800, the USD/CAD quotes are expected to rise. The movement is tending potentially to 1.294001.29600.

Alternative option. If the price fixes below the support level of 1.28500, it is necessary to consider sales of USD/CAD. The movement is tending potentially to the round level of 1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.829
  • Open: 109.188
  • % chg. over the last day:0.67
  • Day’s range: 109.157109.223
  • 52 wk range: 104.56114.74

During yesterday’s trading the bearish sentiment was observed on the USD/JPY currency pair. The USD/JPY quotes fell by more than 80 points. This is more likely due to the technical factors, since investors have fixed profits after the prolonged growth of the US currency. At the moment, local support and resistance levels are: 108.900 and 109.200, respectively. The positions must be opened from these marks.

The news feed on Japan’s economy is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 108.900, 108.650, 108.400
  • Resistance levels: 109.200, 109.450, 109.700

If the price fixes above the level of 109.200, the USD/JPY currency pair growth is expected. The movement is tending potentially to 109.450109.700.

Alternative option. If the price fixes below the support of 108.900, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 108.650108.400.

by JustMarkets, 2018.05.04

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.