The Analytical Overview of the Main Currency Pairs on 2018.03.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22435
  • Open: 1.23394
  • % chg. over the last day: +0.86
  • Day's range: 1.23640 – 1.23748
  • 52 wk range: 1.0492 – 1.2537

Yesterday, there were aggressive purchases on the EUR/USD currency pair after the Fed meeting. As expected, the regulator raised the interest rate by 25 basis points to 1.75%, but investors started selling the American currency. The reason for this could be the fact that the Fed would raise interest rates 3 times this year, instead of the expected 4 increases. At the moment, the key support and resistance levels are: 1.23450 and 1.23750, respectively. We recommend you to open positions from these marks.

The news feed on 2018.03.22:
  • - The index of business activity in the manufacturing sector of Germany at 10:30 (GMT+2:00);
  • - IFO business climate index in Germany at 11:00 (GMT+2:00);
  • - A number of indices of business activity in the Eurozone at 11:00 (GMT+2:00).
EUR/USD

Indicators show the power of buyers. The price has fixed above 50 MA and 200 MA.

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

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

Trading recommendations
  • Support levels: 1.23450, 1.23100, 1.22750
  • Resistance levels: 1.23750, 1.24000, 1.24400

If the price fixes above 1.23750, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to 1.24000-1.24400.

An alternative may be the EUR/USD currency pair decline to 1.23100-1.22750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.40002
  • Open: 1.41358
  • % chg. over the last day: +1.04
  • Day's range: 1.41358 – 1.41407
  • 52 wk range: 1.2106 – 1.4345

Yesterday, aggressive purchases were observed on the GBP/USD currency pair. The growth of the quotes exceeded 150 points. Support was provided by a number of positive reports on the labor market in the UK: the wage level, taking into account the premiums, rose to 2.8%, the unemployment rate fell to 4.3%. Today, investors took a wait-and-see position before the Bank of England interest rate decision. It is expected that the Central Bank will leave the interest rate at the previous level of 0.50%. At the moment, the key support and resistance levels are: 1.41400 and 1.41750, respectively. We recommend opening positions from these marks.

The news feed on 2018.03.22:
  • - The volume of retail sales in the UK at 11:30 (GMT+2:00);
  • - Bank of England interest rate decision at 14:00 (GMT+2:00).
GBP/USD

Indicators show the power of buyers. The price has fixed above 50 MA and 200 MA.

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

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

Trading recommendations
  • Support levels: 1.41400, 1.41000, 1.40500
  • Resistance levels: 1.41750, 1.42200

If the price fixes above the resistance level of 1.41750, further growth of the GBP/USD currency pair is expected. The movement is tending potentially to 1.42250-1.42500.

An alternative may be the correction of GBP/USD to the level of 1.41000-1.40500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30782
  • Open: 1.29027
  • % chg. over the last day: -1.33
  • Day's range: 1.28772 – 1.28888
  • 52 wk range: 1.2059 – 1.3795

At the moment, there are aggressive sales on the USD/CAD currency pair after the Fed meeting. Yesterday, the quotes fell by more than 160 points. The trading instrument is tending potentially to decline. The key support and resistance levels are: 1.28500 and 1.29000, respectively. Positions must be opened above/below these marks. The Canadian dollar is supported by a positive dynamics of oil quotes.

The news feed on Canada's economy is calm.

USD/CAD

The price has fixed below 50 MA and 200 MA, which indicates bearish sentiment.

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

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

Trading recommendations
  • Support levels: 1.28500, 1.28000, 1.27700
  • Resistance levels: 1.29000, 1.29500, 1.30000

If the price fixes below 1.28500, the USD/CAD currency pair is expected to decrease. The target movement level is 1.28000-1.27700.

Alternative option. If the price fixes above the round level of 1.29000, it is necessary to consider purchases of the USD/CAD currency pair. The movement is tending potentially to 1.29500-1.29700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.529
  • Open: 106.066
  • % chg. over the last day: -0.55
  • Day's range: 105.961 – 106.070
  • 52 wk range: 107.33 – 115.51

Yesterday, there was a downward trend on the USD/JPY currency pair. The quotes fell by 100 points. At the moment, the technical pattern is ambiguous. Investors expect additional drivers. The trading instrument is testing local support and resistance levels: 105.600 and 105.900, respectively. We recommend you to open positions above/below these marks.

The news feed on Japan's economy is calm.

USD/JPY

Indicators show the power of sellers. The price has fixed below 50 MA and 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 below the %D line, which indicates a decrease in the USD/JPY currency pair.

Trading recommendations
  • Support levels: 105.600, 105.000
  • Resistance levels: 105.900, 106.200, 106.500

If the price fixes below the 105.600 support level, the USD/JPY quotes are expected to fall. The movement is tending potentially to the round level of 105,000.

Alternative option. If the price fixes above the resistance level of 105.900, it is necessary to consider purchases of USD/JPY. The movement is tending potentially to 106.200-106.500.

by JustForex, 2018.03.22

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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