The Analytical Overview of the Main Currency Pairs on 2017.10.17

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18134
  • Open: 1.17958
  • % chg. over the last day -0.16
  • Day's range: 1.17551 – 1.17999
  • 52 wk range: 1.0341 – 1.2069

Yesterday's trades on the majors were calm. The dollar index (#DX) closed the trading session with a slight increase (+0.22%). Support for the US currency was provided by optimistic data on the NY Empire State production activity index. At the moment the "bearish" sentiment is prevailing on EUR/USD. The trading instrument formed a local support level of 1.17550. The mark 1.17800 is already a "mirror" resistance. We are waiting for important economic reports.

The news background on 2017.10.17:

  • - A number of economic sentiment from ZEW in Germany and the Eurozone at 12:00 (GMT+3:00);
  • - A report on inflation in the Eurozone at 13:00 (GMT+3:00);
  • - The export price and import price indices in the USA at 15:30 (GMT+3:00);
  • - The volume of industrial production in the US at 16:15 (GMT+3:00).
EUR/USD

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

The MACD histogram is located in the negative zone and continues to decline, which signals the sale of EUR/USD.

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

Trading recommendations
  • Support levels: 1.17550, 1.17000
  • Resistance levels: 1.17800, 1.18250

If the EUR/USD quotes overcome the level of 1.17550, we recommend looking for entry points to the market to open short positions. The movement is tending to 1.17150-1.17000. When following a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32929
  • Open: 1.32513
  • % chg. over the last day: -0.27
  • Day's range: 1.32346 – 1.32686
  • 52 wk range: 1.1450 – 1.3618

At the moment, the GBP/USD currency pair is consolidating. Investors took a wait-and-see attitude before the publication of the report on inflation in the UK. Earlier, the Bank of England was concerned about high consumer prices. In the near future, the Central Bank may pick up with raising interest rates. The key trading range is 1.32250-1.32750. We recommend opening positions from these marks.

At 11:30 (GMT+3:00), the UK consumer price index will be published.

GBP/USD

The signals of the indicators are ambiguous. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

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

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

Trading recommendations
  • Support levels: 1.32250, 1.31600
  • Resistance levels: 1.32750, 1.33250

If the price fixes below the support level of 1.32250, we recommend considering sales of GBP/USD. The movement is tending to 1.31600.

Alternative option. If the price fixes above 1.32750, one should look for entry points to the market to open long positions. The target movement level is 1.33250-1.33500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24688
  • Open: 1.25143
  • % chg. over the last day: +0.37
  • Day's range: 1.25132 – 1.25520
  • 52 wk range: 1.2059 – 1.3795

Yesterday, purchases prevailed on USD/CAD. The currency found resistance at 1.25500. The trading instrument formed a local support level of 1.25150. At the moment, the technical pattern is ambiguous. The USD/CAD currency pair is in a sideways екутв. Positions must be opened from the key levels. We recommend paying attention to the news background on the US economy.

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

USD/CAD

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

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

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

Trading recommendations
  • Support levels: 1.25150, 1.24750
  • Resistance levels: 1.25500, 1.25850

If the price fixes above the resistance level of 1.25500, we recommend considering purchases of USD/CAD. The movement is tending potentially to 1.25850-1.26000.

Alternative option. If the USD/CAD rate overcomes the local support of 1.25150, you need to look for entry points in the market to open short positions. The target movement level is 1.24750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.765
  • Open: 112.183
  • % chg. over the last day: +0.28
  • Day's range: 112.036 – 112.304
  • 52 wk range: 99.53 – 118.67

Yesterday, the USD/JPY currency pair kept the local support level of 111.700, which triggered the bullish sentiment. At the moment, the trading instrument is consolidating in a rather narrow range of 112.000-112.250. We do not exclude the further growth of USD/JPY. We expect economic reports from the USA. We also recommend paying attention to the US government bonds yield.

The news background on Japan's economy is calm.

USD/JPY

The indicators don't send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

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

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

Trading recommendations
  • Support levels: 112.000, 111.700
  • Resistance levels: 112.250, 112.550, 112.750

If the price fixes above the local resistance of 112.250, we expect the further growth of the USD/JPY currency pair. The target movement level is 112.550-112.750.

Alternative option. If the price fixes below the round level of 112.000, it is necessary to consider selling USD/JPY. The movement is tending to 111.700-111.500.

by JustForex, 2017.10.17

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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.