The Analytical Overview of the Main Currency Pairs on 2018.05.23


The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17884
  • Open: 1.17786
  • % chg. over the last day:0.02
  • Day’s range: 1.173371.17656
  • 52 wk range: 1.05711.2557

At the moment, there are aggressive sales on the EUR/USD currency pair. Weak data on business activity in Germany and the Eurozone, as well as political uncertainty in Italy put pressure on euro. Today, investors expect the FOMC minutes publication, which will determine the further alignment of forces on currency majors. The key trading range is 1.170001.17700. We recommend opening positions from these marks.

The news feed on 2018.05.23:
  • New home sales in the US at 17:00 (GMT+3:00);
  • Publication of the FOMC minutes at 21:00 (GMT+3:00).
EUR/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 and continues to decline, which gives a strong signal to sell EUR/USD.

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

Trading recommendations
  • Support levels: 1.17000, 1.16500
  • Resistance levels: 1.17700, 1.18200, 1.18800

If the price fixes below the round level of 1.17000, further decrease of the EUR/USD currency pair is expected. The target movement level is 1.167001.16500.

An alternative may be the EUR/USD quotes correction to the level of 1.175001.17750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34252
  • Open: 1.34254
  • % chg. over the last day: +0.07
  • Day’s range: 1.337301.33978
  • 52 wk range: 1.23611.4345

Yesterday, the GBP/USD currency pair strengthened after the member of the Monetary Policy Committee Gertjan Vlieghe announced that in the next three years the Bank of England would probably raise the interest rate 6 times. At the moment, the US dollar has recovered all the losses. Today, the trading instrument is testing new local lows. The key support and resistance levels are 1.33700 and 1.34100, respectively. We recommend opening positions from these marks.

The news feed on 2018.05.23:
  • Consumer price index in the UK at 11:30 (GMT+3:00).
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, below the signal line, which gives a strong signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.33700, 1.33400
  • Resistance levels: 1.34100, 1.34600, 1.35000

If the price fixes below the support level of 1.33700, further decline in the GBP/USD quotes is expected. The movement is tending potentially to 1.334001.33200.

Alternative option. If the price fixes above the already “mirror” resistance of 1.34100, it is necessary to consider purchases of GBP/USD. The target movement level is 1.346001.34800.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27835
  • Open: 1.28182
  • % chg. over the last day: +0.31
  • Day’s range: 1.281801.28239
  • 52 wk range: 1.20591.3795

There are aggressive purchases on the USD/CAD currency pair. The growth of quotes exceeded 100 points. The trading instrument has the potential for further growth. At the moment, the key support and resistance levels are 1.28500 and 1.28900, respectively. The positions should be opened from these marks. Investors are waiting for the publication of the FOMC minutes.

The news feed on the economy of Canada is quite calm.

USD/CAD

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

The MACD histogram is in the positive zone, and above the signal line, which gives a strong signal to buy USD/CAD.

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

Trading recommendations
  • Support levels: 1.28500, 1.28200, 1.27800
  • Resistance levels: 1.28900, 1.29200

If the price fixes below the support level of 1.28500, we recommend considering sales of USD/CAD. The target movement level is 1.282001.28000.

Alternative option. If the price fixes above the resistance level of 1.28900, further growth of the USD/CAD quotes is expected. The movement is tending potentially to 1.292001.29500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.003
  • Open: 110.913
  • % chg. over the last day:0.24
  • Day’s range: 110.017110.340
  • 52 wk range: 104.56114.74

There are aggressive sales on the USD/JPY currency pair. After Donald Trump said that he was dissatisfied with the recent negotiations between the US and China, the demand for safe assets has increased. A further decline in the USD/JPY quotes is not excluded. At the moment, the key support and resistance levels are 109.800 and 110.300, respectively. The positions should be opened from these marks.

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

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 and continues to decline, which gives a strong signal to sell USD/JPY.

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

Trading recommendations
  • Support levels: 109.800, 109.450, 109.100
  • Resistance levels: 110.300, 110.700, 111.100

If the price fixes below the support level of 109.800, further decrease of the USD/JPY currency pair is expected. The movement is tending potentially to 109.450109.100.

Alternative option. If the price fixes above the resistance level of 110.300, we recommend considering purchases of USD/JPY. The movement is tending potentially to 110.700110.900.

by JustMarkets, 2018.05.23

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.