The Analytical Overview of the Main Currency Pairs on 2018.05.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19516
  • Open: 1.19222
  • % chg. over the last day: -0.18
  • Day's range: 1.19197 – 1.19267
  • 52 wk range: 1.0571 – 1.2557

During yesterday's trading session, the EUR/USD quotes slightly decreased against the US dollar strengthening. At the moment, the technical pattern on the EUR/USD currency pair is ambiguous. The trading instrument is moving in flat. We recommend paying attention to the speech of the US President Donald Trump, who should decide whether to remain in the Iran nuclear deal. Local support and resistance levels are: 1.19000 and 1.19400, respectively. We recommend opening positions from these marks.

The news feed on 2018.05.08:
  • – JOLTS job openings at 17:00 (GMT+3:00).

Also we recommend paying attention to the speech of the Federal Reserve Chairman Powell.

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 and below the signal line, which gives a strong signal to sell 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: 1.19000, 1.18600
  • Resistance levels: 1.19400, 1.19900, 1.20600

If the price fixes below the round level of 1.19000, further decrease of the EUR/USD quotes is expected. The movement is tending potentially to 1.18600-1.18400.

Alternative option. If the price fixes above the resistance level of 1.19400, it is necessary to consider purchases of EUR/USD. The target movement level is 1.19900-1.20200.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35327
  • Open: 1.35556
  • % chg. over the last day: +0.27
  • Day's range: 1.35407 – 1.35801
  • 52 wk range: 1.2361– 1.4345

The GBP/USD currency pair is still moving in flat. Investors expect additional drivers. In the near future, a technical correction of the GBP/USD quotes is not excluded after a significant decline in the past three weeks. At the moment, the local support and resistance levels are 1.35200 and 1.35800, respectively. Positions must be opened from these levels.

The news feed on the UK economy is calm.

GBP/USD

Indicators do not send accurate signals. The price crossed 50 MA.

The MACD histogram is near the 0 mark. There are no accurate signals.

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

Trading recommendations
  • Support levels: 1.35200, 1.34800
  • Resistance levels: 1.35800, 1.36550, 1.37500

If the price fixes below the support level of 1.35200, the GBP/USD quotes are expected to decline. The movement is tending potentially to 1.34800-1.34600.

Alternative option. If the price fixes above the resistance level of 1.35800, the GBP/USD correction to 1.36300-1.36550 is expected.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28455
  • Open: 1.28786
  • % chg. over the last day: +0.19
  • Day's range: 1.28977 – 1.29513
  • 52 wk range: 1.2059 – 1.3795

There were aggressive purchases on the USD/CAD currency pair. During yesterday's and today's trading sessions, quotes rose by almost 90 points. The trading instrument found resistance at 1.29500. Round level of 1.29000 is already a "mirror" support. The positions must be opened from these marks.

Today, important economic reports from Canada are not expected to be published. We recommend paying attention to the speeches of the Federal Reserve Chairman Powell and the US President Donald Trump.

USD/CAD

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

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

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

Trading recommendations
  • Support levels: 1.29000, 1.28700, 1.28300
  • Resistance levels: 1.29500, 1.30000

If the price fixes above the resistance of 1.29500, further growth of the USD/CAD quotes is expected. The movement is tending potentially to the round level of 1.30000.

Alternative option. If the price fixes below the round level of 1.29000, it is necessary to consider sales of USD/CAD. The movement is tending potentially to 1.28700-1.28300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.108
  • Open: 109.046
  • % chg. over the last day: -0.18
  • Day's range: 108.900 – 109.017
  • 52 wk range: 104.56 – 114.74

At the moment, the technical pattern on the USD/JPY currency pair is ambiguous. Investors expect additional drivers. We recommend paying attention to the 10-year US government bonds yield. Local support and resistance levels are: 108.850 and 109.100, respectively. The positions must be opened from these marks. The trading instrument has the potential for further correction.

The news feed on Japan's economy is calm.

USD/JPY

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

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also indicates a decrease in the USD/JPY quotes.

Trading recommendations
  • Support levels: 108.850, 108.600
  • Resistance levels: 109.100, 109.400, 109.700

If the price fixes below the support of 108.850, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 108.600-108.200.

Alternative option. If the price fixes above the level of 109.100, the USD/JPY currency pair is expected to grow. The movement is tending potentially to 109.400-109.700.

by JustForex, 2018.05.08

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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