The Analytical Overview of the Main Currency Pairs on 2018.01.31

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23811
  • Open: 1.24022
  • % chg. over the last day: +0.21
  • Day's range: 1.24008 – 1.24055
  • 52 wk range: 1.0492 – 1.2537

The EUR/USD quotes rose after the release of positive data on the economy of the Eurozone. At the moment, the trading instrument is testing the local resistance of 1.24600. The round level of 1.24000 is a key support. Investors took a wait-and-see position before the Fed meeting. Positions need to be opened from the key support and resistance levels.

The news feed on 2018.01.31:

  • - Statistics on the labor market in Germany at 10:55 (GMT+2:00);
    - Report on inflation in the Eurozone at 12:00 (GMT+2:00);
    - ADP nonfarm employment change in the US at 15:15 (GMT+2:00);
    - Pending home sales index in the US at 17:00 (GMT+2:00).
EUR/USD

Indicators indicate the power of buyers. The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

The MACD histogram is in the positive zone, above the signal line, which gives a strong signal to buy EUR/USD.

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

Trading recommendations
  • Support levels: 1.24000, 1.23400, 1.22800
  • Resistance levels: 1.24600, 1.25000, 1.25500

If the price fixes above 1.24600, EUR/USD is expected to grow. The movement is tending potentially to the round level of 1.25000.

If the statistics from the US turns out to be optimistic, a correction may develop on the EUR/USD currency pair. The movement is tending potentially to 1.24000-1.23750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.40734
  • Open: 1.41447
  • % chg. over the last day: +0.58
  • Day's range: 1.41685 – 1.41861
  • 52 wk range: 1.2106 – 1.4345

Yesterday, there were aggressive purchases on the GBP/USD currency pair. The growth of quotes exceeded 150 points. At the moment, currency pair is being traded in the range of 1.41500-1.42100. Investors expect additional drivers. Positions need to be opened from the key support and resistance levels. We recommend paying attention to the economic reports from the US and the Fed meeting.

The news feed on the UK economy is calm today.

GBP/USD

The signals of the indicators are different. The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

The MACD histogram is in the positive zone, above the signal line, which signals the purchases of GBP/USD.

Stochastic Oscillator is located near the overbought zone, the %K line is below the %D line, which signals to sell GBP/USD.

Trading recommendations
  • Support levels: 1.41500, 1.40700, 1.40000
  • Resistance levels: 1.42100, 1.42600, 1.43150

If the price fixes below the support level of 1.41500, we recommend considering sales of GBP/USD. The movement is tending potentially to the round level of 1.41000.

Alternative option. If the price fixes above 1.42100, it is necessary to look for entry points to open long positions. The target movement level is 1.42600-1.42800.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23421
  • Open: 1.23284
  • % chg. over the last day: -0.02
  • Day's range: 1.23275 – 1.23387
  • 52 wk range: 1.2059 – 1.3795

Yesterday, there was a variety of trends on the USD/CAD currency pair. Today, during the Asian trading session, the USD/CAD quotes have begun to decline. The further fall of the currency pair is not excluded. At the moment, the key support and resistance levels are 1.22750 and 1.23000, respectively. It is recommended to open positions if the price fixes above/below these marks.

At 15:30 (GMT+2:00) data on GDP in Canada will be published.

USD/CAD

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

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

Stochastic Oscillator is located in the oversold zone, the %K line is above the %D line, which signals to buy USD/CAD.

Trading recommendations
  • Support levels: 1.22750, 1.22300
  • Resistance levels: 1.23000, 1.23300, 1.23700

If the price continues to decline and fixes below the support level of 1.22750, we recommend considering sales. The movement is tending potentially to 1.22300-1.22000.

The alternative is the growth of the USD/CAD quotes to the level of 1.23300-1.23700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.937
  • Open: 108.753
  • % chg. over the last day: -0.18
  • Day's range: 108.629 – 108.755
  • 52 wk range: 107.33 – 115.51

At the moment, the USD/JPY currency pair is being traded in flat. The key support and resistance levels are 108.600 and 109.000, respectively. Investors expect additional drivers. We recommend you to pay attention to the economic reports from the United States, as well as to the results of the Fed meeting. Positions need to be opened from the key levels.

Positive data on the volume of industrial production in Japan was published during the Asian trading session.

USD/JPY

The price is located near 50 MA, which is a strong dynamic resistance at the moment.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 108.600, 108.200
  • Resistance levels: 109.000, 109.350, 109.700

If the price fixes below the support level of 108.600, the USD/JPY quotes are expected to decline. The movement is tending potentially to 108.200-108.000.

An alternative may be the growth of the USD/JPY currency pair to 109.350-109.700.

by JustForex, 2018.01.31

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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