The Analytical Overview of the Main Currency Pairs on 2017.06.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12759
  • Open: 1.12544
  • % chg. over the last day: -0.19
  • Day's range: 1.12467 – 1.12695
  • 52 wk range: 1.0366 – 1.1616

Yesterday, high volatility and trading activity were observed on EUR/USD. At the moment, the technical pattern is ambiguous. The key trading range is still 1.12400-1.12800. Investors are waiting for the decision of the ECB. Experts believe that the regulator will leave interest rates unchanged. We recommend you to pay attention to the statements and comments of the Central Bank representatives.

News background:

  • - Decision on interest rates of the ECB at 14:45 (GMT+3:00);
  • - ECB press conference at 15:30 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals. The price is between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.12400, 1.12000
  • Resistance levels: 1.12800

We recommend waiting for the decision of the ECB regarding further monetary policy. It is better to open positions from the key levels.

If the price consolidates below 1.12400, a correction may develop on the EUR/USD currency pair. The movement is tending potentially to 1.12000-1.11750.

Alternative option. If the EUR/USD quotes fix above the resistance level of 1.12800, it is necessary to search for entry points to the market to open long positions. The target level of movement is 1.13500-1.13750.

When tracking the position, we recommend using a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29063
  • Open: 1.29517
  • % chg. over the last day: +0.39
  • Day's range: 1.29493 – 1.29765
  • 52 wk range: 1.1986 – 1.5020

Today in the UK the parliamentary elections will take place. Yesterday, the bullish sentiment was observed on GBP/USD, which indicates the confidence of financial market participants in the victory of the Conservative Party. The publication of the first data will appear at the end of the American trading session. The key trading range is 1.29350-1.29800

GBP/USD

Indicators point to the power of buyers. The GBP/USD quotes have fixed above 50 MA and 200 MA.

The MACD histogram is in the positive area and continues to rise, which signals an increase in GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also signals the purchase of GBP/USD.

Trading recommendations
  • Support levels: 1.29350, 1.28800, 1.28350
  • Resistance levels: 1.29800

We recommend opening positions from the key levels.

If the price overcomes and consolidates above the local resistance of 1.29800, the GBP/USD growth may continue. The movement is tending to 1.30500-1.30750.

Alternative option. If the GBP/USD rate falls below the 1.29350 mark, a correction may develop. The immediate goal for profit taking is 1.29000-1.28750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34502
  • Open: 1.35105
  • % chg. over the lasr day: +0.40
  • Day's range: 1.35008 – 1.35210
  • 52 wk range: 1.2458 – 1.4692

Yesterday, aggressive purchases were observed on USD/CAD. This is due to a sharp drop in the quotes of "black gold" against the background of unexpected growth in the oil products in the US. Futures for WTI crude oil fell by more than 5%. The USD/CAD currency pair found resistance at 1.35200. The nearest support is the round level of 1.35000.

Newsline on the economy of Canada:

  • - The index of prices for new homes at 15:30 (GMT+3:00);
  • - Speech of the head of the Bank of Canada Poloz at 18:15 (GMT+3:00).
USD/CAD

The price has fixed above 50 MA and 200 MA, which indicates the bullish sentiment on USD/CAD.

The MACD histogram is in the positive area, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates the growth of the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.35000, 1.34700, 1.34350
  • Resistance levels: 1.35200

If the price consolidates above the local resistance of 1.35200, the growth of the USD/CAD quotes may continue. The target movement level is 1.35500-1.35750.

Alternative option. If the USD/CAD quotes fix below the round level of 1.35000, the technical correction may develop. The immediate goal for profit taking is 1.34800-1.34700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.380
  • Open: 109.812
  • % chg. over the last day: +0.37
  • Day's range: 109.377 – 110.012
  • 52 wk range: 99.08 – 123.69

Yesterday, USD/JPY experienced a technical correction after a significant decline while trading on Tuesday, June 06. In the Asian session, the currency retained a "mirror" support of 109.600. Pressure on the yen is caused by weak data on Japan's GDP. The round level of 110.000 is the nearest resistance.

We recommend you to pay attention to the dynamics of the 10-year US government bonds yield.

USD/JPY

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

The MACD histogram is located in the positive area and continues to rise, which indicates the growth of the USD/JPY currency pair.

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

Trading recommendations
  • Support levels: 109.600, 109.250
  • Resistance levels: 110.000, 110.600

If the price consolidates above the round level of 110,000, the correction of USD/JPY may continue. The movement is tending potentially to 110.400-110.600.

Alternative option. If the USD/JPY rate overcomes the key support of 109.250, we recommend looking for entry points in order to open short positions. The target movement level is 108.750.

We recommend you to get acquainted with the daily overview of the news feed.

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.