The Analytical Overview of the Main Currency Pairs on 2018.04.23

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23447
  • Open: 1.22728
  • % chg. over the last day: -0.47
  • Day's range: 1.22650 – 1.22879
  • 52 wk range: 1.0571 – 1.2557

Last week, the US dollar strengthened against the major currencies. Support was provided by the growth of the government bonds yield and optimistic economic reports from the United States. At the moment, the EUR/USD currency pair is consolidating. The key trading range is 1.22600-1.23000. The EUR/USD quotes have the potential to further decline. We recommend opening positions from the key levels.

The news feed on 2018.04.23:
  • – The index of business activity in the manufacturing sector in Germany at 10:30 (GMT+3:00);
  • – A number of indices of business activity in the Eurozone at 11:00 (GMT+3:00);
  • – Existing home sales in the US at 17:00 (GMT+3:00).
EUR/USD

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

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

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

Trading recommendations
  • Support levels: 1.22600, 1.22000
  • Resistance levels: 1.23000, 1.23350, 1.23650

If the price fixes below the support level of 1.22600, further decrease of the EUR/USD currency pair is expected. The movement is tending potentially to the round level of 1.22000.

Alternative option. If the price fixes above 1.23000, it is necessary to consider purchases of EUR/USD. The target movement level is 1.23350-1.23500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.40833
  • Open: 1.40000
  • % chg. over the last day: -0.62
  • Day's range: 1.39920 – 1.40310
  • 52 wk range: 1.2361– 1.4345

Last week aggressive sales of GBP/USD were observed. The pound weakened against the US dollar by more than 250 points. The GBP/USD quotes reached a round level of 1.40000. Pressure on the pound was provided by weak economic reports from the UK. In the near future, a technical correction is not ruled out. At the moment, the key trading range is 1.40000-1.40400. We recommend you to open positions from these marks.

Today, the news feed on the UK economy is calm.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.40000, 1.39500
  • Resistance levels: 1.40400, 1.40800, 1.41250

If the price fixes below the round level of 1.40000, further decrease of the GBP/USD currency pair is expected. The movement is tending potentially to 1.39500.

Alternative option. If the price fixes above 1.40400, the GBP/USD correction is expected. The movement is tending potentially to 1.40750-1.41000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26723
  • Open: 1.27504
  • % chg. over the last day: +0.69
  • Day's range: 1.27423 – 1.27703
  • 52 wk range: 1.2059 – 1.3795

Last sessions the bullish sentiment has been prevailing on the USD/CAD currency pair. At the moment, the key support and resistance levels are: 1.27300 and 1.27700, respectively. Demand for the US dollar remains. The USD/CAD quotes have the potential to further correction. We recommend you to open positions from the key levels.

At 15:30 (GMT+3:00) there will be data on the volume of wholesale sales in Canada.

We also recommend paying attention to the speech of the Bank of Canada governor.

USD/CAD

The price has fixed above 50 MA and 200 MA, which signals 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 crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.27300, 1.26750, 1.26450
  • Resistance levels: 1.27700, 1.28000

If the price fixes above 1.27700, further correction of the USD/CAD currency pair is expected. The movement is tending potentially to 1.28000-1.28300.

Alternative option. If the price fixes below the local support of 1.27300, it is necessary to consider sales of USD/CAD. The movement is tending potentially to 1.27000-1.26750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.366
  • Open: 107.759
  • % chg. over the last day: +0.27
  • Day's range: 107.658 – 107.940
  • 52 wk range: 104.56 – 114.74

The USD/JPY currency pair continues to show positive dynamics. At the moment, the key support and resistance levels are: 107.750 and 108.000, respectively. The trading instrument has the potential to further growth. We recommend paying attention to the US government bonds yield. Positions must be opened from the key levels.

The news feed on Japan's economy is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 107.750, 107.500, 107.350
  • Resistance levels: 108.000, 108.500

If the price fixes above the round level of 108,000, further growth of the USD/JPY quotes is expected. The movement is tending potentially to 108.500.

Alternative option. If the price fixes below the support level of 107.750, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 107.500-107.350.

by JustForex, 2018.04.23

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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