The Analytical Overview of the Main Currency Pairs on 2017.07.27

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16429
  • Open: 1.17330
  • % chg. over the last day: +0.02
  • Day's range: 1.17137 – 1.17774
  • 52 wak range: 1.0366 – 1.1777

The Fed, as expected, left the key interest rate at the previous level of 1.00-1.25%. The Central Bank reported weak prospects of the inflation growth, which is currently below the target level of 2%. These comments put considerable pressure on the US currency. The US dollar sharply weakened against the majors. The EUR/USD currency pair formed a local resistance of 1.17750. The round level of 1.17000 is already a "mirror" support. We expect important economic reports from the United States.

Statistics on the US economy on 2017.07.27:
  • – A report on orders for durable goods at 15:30 (GMT+3:00);
  • – The balance of foreign trade in goods at 15:30 (GMT+3:00);
  • – The number of initial claims for unemployment benefits at 15:30 (GMT+3:00).
EUR/USD

The signals of the indicators vary. The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

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

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

Trading recommendations
  • Support levels: 1.17000, 1.16500
  • Resistance levels: 1.17750

If the statistics from the US turns out to be positive, a correction may develop on the EUR/USD currency pair. The movement is tending potentially to the support level of 1.16500.

An alternative may be further growth of the EUR/USD quotations. The target movement level is 1.17750-1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30250
  • Open: 1.31112
  • % chg. over the last day: +0.68
  • Day's range: 1.31048 – 1.31570
  • 52 wk range: 1.1450 – 1.3447

In the course of yesterday's trading, the bullish sentiment prevailed on GBP/USD. The pound rose against the US dollar by more than 90 points. In the second quarter, the growth of the UK economy justified market expectations and amounted to 1.7% (year on year). Today, GBP/USD continued its upward trend. At the moment, the key trading range is 1.31000-1.31500.

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

GBP/USD

The GBP/USD quotes have fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is located in the positive area and above the signal line, which indicates a bullish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.31000, 1.30600
  • Resistance levels: 1.31500

If economic reports from the US turn out to be weak, the upward trend in GBP/USD may continue. The movement is tending potentially to 1.31500-1.31750.

An alternative may be the correction of the GBP/USD currency pair to the local demand zone of 1.31000-1.30750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25001
  • Open: 1.24438
  • % chg. over the last day: -0.46
  • Day's range: 1.24141 – 1.24583
  • 52 wk range: 1.2520 – 1.3795

Yesterday, the bearish sentiment again prevailed on USD/CAD. The comments of the Fed and the recovery of the "black gold" prices supported the demand for the Canadian dollar. The currency found support at 1.24150. The mark 1.24850 is already a "mirror" resistance. Investors are expecting a report on Canada's GDP, which will be published on Friday, July 28.

We recommend paying attention to the news feed from the USA.

USD/CAD

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

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals a correction on USD/CAD.

Trading recommendations
  • Support levels: 1.24150
  • Resistance levels: 1.24850, 1.25350

If the statistics from the US turns out to be positive, a correction may develop on the USD/CAD currency pair. The target movement level is 1.24850-1.25000.

Alternatively, the USD/CAD quotes may drop further. The movement is tending potentially to 1.24000-1.23750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.880
  • Open: 111.132
  • % chg. over the last day: -0.65
  • Day's range: 110.780 – 111.332
  • 52 wk range: 99.53 – 118.67

Yesterday, sales prevailed on USD/JPY. Fed statements and a sharp drop in the US government bonds yield strengthened the position of the "safe haven" currency relative to the US dollar. The drop in the USD/JPY quotations exceeded 75 points. At the moment, the key levels of support and resistance are 110.850 and 111.600 respectively.

We recommend paying attention to statistics on the US economy.

USD/JPY

Indicators do not send accurate signals. The price is below 50 MA and 200 MA, which indicates the power of sellers.

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

Stochastic Oscillator has reached the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

Trading recommendations
  • Support levels: 110.850
  • Resistance levels: 111.600, 112.150

If the statistics from the US is positive, we recommend considering buying USD/JPY. The movement is tending potentially to 111.600-111.900.

An alternative may be a downward trend on the USD/JPY currency pair to 110.850-110.600.

by JustForex, 2017.07.27

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.

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