The Analytical Overview of the Main Currency Pairs on 2017.12.14

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17413
  • Open: 1.18256
  • % chg. over the last day: +0.81
  • Day's range: 1.18109 – 1.18437
  • 52 wk range: 1.0341 – 1.2069

The Fed, as expected, raised the key interest rate by 25 basis points to 1.50%. At the same time, the US dollar has significantly weakened relative to the majors. The regulator is concerned about the low level of inflation in the country. Some representatives of the Central Bank said that in the near future one should not rush to raise interest rates. At the moment, the bullish sentiment prevails on the EUR/USD. The further growth of quotations is not excluded. The key trading range is 1.18400-1.18000. We recommend opening positions from these marks. We are waiting for the ECB meeting and the publication of important economic reports.

The news feed on 2017.12.14:

  • - Statistics on business activity in the Eurozone at 11:00 (GMT+2:00);
  • - The ECB meeting at 14:45 (GMT+2:00);
  • - A report on retail sales in the US at 15:30 (GMT+2:00).
EUR/USD

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

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 in the neutral zone, the %K line is above the %D line, which also signals the purchase of EUR/USD.

Trading recommendations
  • Support levels: 1.18000, 1.17600, 1.17300
  • Resistance levels: 1.18400, 1.18750, 1.19000

If the price fixes above the local resistance of 1.18400, further growth of EUR/USD is expected. The movement is tending to 1.18750-1.19000.

Alternative option. If the price fixes below the round level of 1.18000, it is necessary to consider sales of EUR/USD. The movement is tending to 1.17600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33166
  • Open: 1.34147
  • % chg. over the last day: +0.69
  • Day's range: 1.33350 – 1.34488
  • 52 wk range: 1.1450 – 1.3618

Today we expect high trading activity. Investors took a wait-and-see attitude before the meeting of the Bank of England. It is expected that the Central Bank will leave the key interest rate at the previous level of 0.50%. We also recommend paying attention to economic reports from the UK and the USA. Currently, GBP/USD is consolidating in the range of 1.34100-1.34550. The positions must be opened from these marks.

The news feed on the UK economy:

  • - A report on retail sales at 11:30 (GMT+2:00);
  • - The decision on the interest rate of the Bank of England at 14:00 (GMT+2:00).
GBP/USD

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

The MACD histogram is in the positive zone and continues to rise, which signals a bullish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.34100, 1.33700, 1.33100
  • Resistance levels: 1.34550, 1.35100, 1.35400

If the price fixes above the level of 1.34550, we recommend you to look for entry points to the market to open long positions. The movement is tending to 1.35100-1.35400.

If the price fixes below the local support of 1.34100, it is necessary to consider sales of GBP/USD. The target level of movement is 1.33700-1.33500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28640
  • Open: 1.28115
  • % chg. over the last day: -0.33
  • Day's range: 1.27974 – 1.28658
  • 52 wk range: 1.2059 – 1.3795

At the moment, there is a high volatility and trading activity on the USD/CAD currency pair. Nevertheless, the technical pattern is ambiguous. The trading instrument is in a sideways trend. The following key support and resistance levels can be identified: 1.28300 and 1.28850, respectively. The US dollar remains under pressure after the Fed's meeting. We recommend opening positions from the key levels.

At 15:30 (GMT+2:00) the new housing price index in Canada will be released.

It is necessary to pay attention to the speech by the Bank of Canada head Poloz.

USD/CAD

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

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.28300, 1.28000, 1.27600
  • Resistance levels: 1.28850, 1.29200

If the statistics from the US is weak, we recommend you to look for entry points to the market to open short positions. The target level of movement is 1.28000-1.27600.

An alternative may be the growth of the USD/CAD quotations to the level of 1.29000-1.29200.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.542
  • Open: 112.536
  • % chg. over the last day: -0.70
  • Day's range: 112.532 – 112.881
  • 52 wk range: 99.53 – 118.67

Yesterday aggressive sales of USD/JPY were observed. The drop in the quotations exceeded 100 points. The trading instrument found support at 112.500. The 113.250 mark has been already a "mirror" resistance. At the moment, USD/JPY is consolidating. Participants of the financial market expect statistics on the US economy. We recommend paying attention to the yield of US government bonds. Positions must be opened from the key levels.

The news feed on Japan's economy is calm.

USD/JPY

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

The MACD histogram has begun to rise and is above the signal line, which indicates a correction of the USD/JPY quotes.

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

Trading recommendations
  • Support levels: 112.500, 112.150
  • Resistance levels: 112.900, 113.250, 113.650

If economic reports from the US are weak, we recommend considering selling USD/JPY. The movement is tending to 112.150-112.000.

An alternative may be the growth of the USD/JPY currency pair to the level of 113.250-113.500.

When tracking positions, one should use a trailing stop.

by JustForex, 2017.12.14

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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