The Analytical Overview of the Main Currency Pairs on 2018.01.29

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23921
  • Open: 1.24237
  • % chg. over the last day: +0.20
  • Day's range: 1.23852 – 1.24322
  • 52 wk range: 1.0492 – 1.2296

Last week aggressive purchases of EUR/USD were observed. The growth of quotations exceeded 200 points. At the moment, the trading instrument is in a sideways trend. In the near future, a technical correction is not ruled out. The US currency is supported by the growth in the US government bonds yield. At the moment, the key trading range is 1.23750-1.24400. The positions must be opened from these marks.

At 15:30 (GMT+2:00) the statistics on individual income and spending in the United States will be released.

EUR/USD

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

The MACD histogram is in the negative zone and continues to decline, which indicates a correction of the EUR/USD quotes.

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: 1.23750, 1.23000, 1.22200
  • Resistance levels: 1.24400, 1.25200

If the price fixes below the local support level of 1.23750, a correction of EUR/USD is expected. The movement is tending to 1.23250-1.23000.

Alternative option. If the price fixes above 1.22400, it is necessary to look for entry points to the market in order to open long positions. The movement is tending to 1.24800-1.25200.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.41340
  • Open: 1.41395
  • % chg. over the last day: +0.17
  • Day's range: 1.41104 – 1.41585
  • 52 wk range: 1.2014 – 1.3820

The trading activity and volatility on the GBP/USD currency pair increased significantly. The trading instrument continues to show positive dynamics. Nevertheless, a technical correction is not ruled out in the near future. Currently, GBP/USD is consolidating. The key levels of support and resistance are 1.41000 and 1.41650 respectively. We recommend opening positions from these marks.

The news background on the UK economy is calm today.

GBP/USD

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

The MACD histogram is in the negative zone and continues to decline, which indicates a correction of the GBP/USD quotes.

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: 1.41000, 1.40000
  • Resistance levels: 1.41650, 1.42300, 1.43250

If the price fixes below the round level of 1.41000, a correction of the GBP/USD currency pair is expected. The movement is tending to 1.40500-1.40250.

Alternative option. If the price fixes above 1.41650, it is necessary to consider buying GBP/USD. The movement is tending to 1.42300-1.42800.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23747
  • Open: 1.23098
  • % chg. over the last day: -0.57
  • Day's range: 1.23098 – 1.23557
  • 52 wk range: 1.2059 – 1.3795

During the last sessions, the USD/CAD currency pair has been in a sideways trend. On Friday, the trading instrument held the key demand zone of 1.22850-1.23100, which triggered the bullish sentiment. In the near future, a correction of USD/CAD quotes after a significant drop last week is not excluded. At the moment, the price is testing the resistance level of 1.23650.

The news feed on Canada's economy is calm.

USD/CAD

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

The MACD histogram has begun to rise and moved to the positive zone, which indicates a correction of the USD/CAD currency pair.

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

Trading recommendations
  • Support levels: 1.23000
  • Resistance levels: 1.23650, 1.24100, 1.24450

If the price fixes above the resistance level of 1.23650, a correction of the USD/CAD currency pair is expected. The movement is tending to 1.24000-1.24450. When following the positions, we recommend using a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.406
  • Open: 108.685
  • % chg. over the last day: -0.63
  • Day's range: 108.508 – 109.058
  • 52 wk range: 107.33 – 115.51

At the moment, USD/JPY is consolidating after a significant drop last week. The trading instrument is testing the key support and resistance levels: 108.550 and 109.000, respectively. In the near future, we do not exclude a corrective movement. We recommend paying attention to economic reports from the USA.

The news feed on Japan's economy is calm.

USD/JPY

The price is testing 50 MA, which is quite a strong dynamic resistance.

The MACD histogram has begun to rise and fixed above the signal line, which indicates the correction of the USD/JPY currency pair.

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

Trading recommendations
  • Support levels: 108.550, 108.000
  • Resistance levels: 109.000, 109.450

If the price fixes above the round level of 109.000, the correction of the USD/JPY currency pair is expected. The movement is tending to 109.450-109.750.

by JustForex, 2018.01.29

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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.

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