The Analytical Overview of the Main Currency Pairs on 2018.05.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19243
  • Open: 1.18386
  • % chg. over the last day: -0.90
  • Day’s range: 1.18158 – 1.18454
  • 52 wk range: 1.0571 – 1.2557

During yesterday's trading, the US dollar strengthened against majors. The fall in the EUR/USD quotations exceeded 100 points. The US currency was supported by an increase in the yield of the US 10-year government bonds. The indicator has reached highs since 2011. The report on retail sales in the US was ambiguous. In April, the base retail sales index slowed to 0.3%, which is below market expectations of 0.5%. At the same time, data for March were revised upwards. At the moment, the EUR/USD currency pair is consolidating. The key trading range is 1.18200-1.18500. We recommend opening positions from these marks.

The news feed on 2018.05.16:
  • - The consumer price index of the Eurozone at 12:00 (GMT+3:00);
  • - Statistics on the real estate market in the US at 15:30 (GMT+3:00);
  • - Industrial production in the US at 16:15 (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 overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.18200, 1.18000, 1.17500
  • Resistance levels: 1.18500, 1.18800, 1.19000

If the price fixes below the support level of 1.18200, a further decrease in the EUR/USD currency pair is expected. The target level of movement is 1.18000-1.17500.

Alternative option. If the price fixes above 1.18500, it is necessary to consider buying EUR/USD. The movement is tending to 1.18800-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35551
  • Open: 1.35046
  • % chg. over the last day: -0.41
  • Day’s range: 1.34844 – 1.35209
  • 52 wk range: 1.2361 – 1.4345

Yesterday, the bearish sentiment prevailed on the GBP/USD currency pair. A report on the UK labor market turned out to be rather weak. At the moment, GBP/USD is in a sideways trend. The trading instrument is tending to reduce. Demand for the American currency is still high. We recommend opening positions from the key levels.

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

GBP/USD

Indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

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 send a signal to sell GBP/USD as well.

Trading recommendations
  • Support levels: 1.34850, 1.34600, 1.34000
  • Resistance levels: 1.35200, 1.35650, 1.36000

If the price fixes below the support level of 1.34850, further decrease of the GBP/USD currency pair is expected. The movement is tending to 1.34600-1.34200.

An alternative may be the growth of GBP/USD to 1.35500-1.35700.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28018
  • Open: 1.28689
  • % chg. over the last day: +0.47
  • Day’s range: 1.28445 – 1.28770
  • 52 wk range: 1.2059 – 1.3795

Yesterday, aggressive purchases were observed on the USD/CAD currency pair. The trading instrument has reached a round level of 1.29000. At the moment, the quotes of USD/CAD have moved away from local highs. The key trading range is 1.28400-1.28750. Demand for the US dollar remains is still high. Positions need to be opened from the key levels of support and resistance.

The news feed on Canada's economy is calm.

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, but below the signal line, which gives a weak signal to buy USD/CAD.

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

Trading recommendations
  • Support levels: 1.28400, 1.28000, 1.27600
  • Resistance levels: 1.28750, 1.29200

If the price fixes above 1.28750, further growth of the USD/CAD quotes is expected. The movement is tending to 1.29200-1.29500.

An alternative may be the correction of the USD/CAD currency pair to the level of 1.28000-1.27750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.652
  • Open: 110.295
  • % chg. over the last day: +0.58
  • Day’s range: 110.078 – 110.386
  • 52 wk range: 104.56 – 114.74

Since the beginning of the current week, the USD/JPY pair shows a positive trend. The growth of yield on US government bonds supports the demand for the US currency. At the moment, the USD/JPY quotations are consolidating. Local support and resistance levels are: 110.100 and 110.400, respectively. In the near future, a technical correction is not ruled out. Positions must be opened from the key levels.

In the Asian trading session, a weak report on GDP of Japan was published.

USD/JPY

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

The MACD histogram has begun to decline, which signals a possible correction of the USD/JPY currency pair.

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

Trading recommendations
  • Support levels: 110.100, 109.750, 109.350
  • Resistance levels: 110.400, 111.000

If the price fixes above the level of 110.400, further growth of the USD/JPY currency pair is expected. The movement is tending to the round level of 111.000.

Alternative option. If the price fixes below the local support of 110.100, a correction movement is expected. The target level is 109.750-109.500.

by JustForex, 2018.05.16

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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