The Analytical Overview of the Main Currency Pairs on 2017.10.09

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17104
  • Open: 1.17279
  • % chg. over the last day: +0.20
  • Day's range: 1.17196 – 1.17476
  • 52 wk range: 1.0341 – 1.2069

On Friday, the main currency pairs showed high volatility. The US published mixed statistics on the labor market. In September, the number of people employed in the non-agricultural sector of the country fell by 33,000 due to the aftermath of hurricanes. At the same time, the unemployment rate dropped from 4.4% to 4.2%. The average hourly wage rose by 0.5%, exceeding the expectations of experts at 0.3%. At the moment, the technical pattern on EUR/USD is ambiguous. The key trading range is 1.17150-1.17450. We recommend opening positions from these marks.

Today, the publication of important economic reports is not planned.

EUR/USD

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

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

Stochastic Oscillator is close to the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.17150, 1.16750
  • Resistance levels: 1.17450, 1.17800

If the price fixes above the 1.17450 mark, we recommend considering buying EUR/USD. The target level of movement is 1.17800.

Alternative option. If the price fixes below the local support of 1.17150, you need to look for entry points to the market to open short positions. The movement is tending to 1.16800-1.16750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31175
  • Open: 1.30921
  • % chg. over the last day: -0.40
  • Day's range: 1.30742 – 1.31250
  • 52 wk range: 1.1450 – 1.3618

Last week aggressive sales were observed on GBP/USD. The pound weakened against the US dollar by more than 300 points. The trading instrument found support at the level of 1.30300. At the moment, there is a corrective movement. The price is testing the local resistance of 1.31250. The GBP/USD quotes have the potential for further growth. Positions must be opened from the key levels.

The news background on the UK economy is calm.

GBP/USD

The price is testing 50 MA, which at the moment is quite strong dynamic support.

The MACD histogram has begun to rise and has moved to the positive zone, indicating a bullish sentiment on GBP/USD.

Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.30800, 1.30300
  • Resistance levels: 1.31250, 1.32250

We expect a correction of the GBP/USD currency pair. If the price fixes above the local resistance of 1.31250, we recommend considering buying. The movement is tending to 1.317500-1.32000.

Alternative option. If the price fixes below 1.30800, it is necessary to consider sales of GBP/USD. The immediate goal for profit taking is 1.30300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25618
  • Open: 1.25318
  • % chg. over the last day: -0.23
  • Day's range: 1.25257 – 1.25472
  • 52 wk range: 1.2059 – 1.3795

On Friday, sales prevailed on USD/CAD. The report on the labor market in Canada was mixed. At the same time in September, Ivey's business activity index increased by 5.8% to 59.6. At the moment, the USD/CAD currency pair is consolidating. The key trading range is 1.25250-1.25600. It is recommended to open positions if the price fixes above/below these marks.

Financial markets in Canada are closed due to the holiday.

USD/CAD

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

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

Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.25250, 1.24650
  • Resistance levels: 1.25600, 1.26000

If the price fixes above the level of 1.25600, we recommend looking for entry points to the market to open long positions. The movement is tending to the round level of 1.26000.

Alternative option. If the USD/CAD quotes overcome the mark of 1.25250, it is necessary to consider sales. The target level of movement is 1.24900-1.24650.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.816
  • Open: 112.592
  • % chg. over the last day: -0.16
  • Day's range: 112.329 – 112.701
  • 52 wk range: 99.53 – 118.67

On Friday, trades were very active on the USD/JPY currency pair. However, a unidirectional trend was not observed. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating. The following key levels of support and resistance can be identified 112.500 and 112.750, respectively. We recommend you to keep track of current information on the situation on the Korean peninsula.

The financial markets of Japan are closed due to the holiday.

USD/JPY

The signals of the indicators are ambiguous. 50 MA has crossed 200 MA.

The MACD histogram is located 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 above the %D line, which indicates the growth of USD/JPY.

Trading recommendations
  • Support levels: 112.500, 112.000
  • Resistance levels: 112.750, 113.000, 113.400

If the price fixes above 112.750, you need to look for entry points to open long positions. The target movement level is 113.000-113.400.

Alternative option. If the USD/JPY quotes overcome the level of 112.500, we recommend considering sales. The movement is tending to the round level of 112.000.

by JustForex, 2017.10.09

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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.