The Analytical Overview of the Main Currency Pairs on 2018.05.18

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18066
  • Open: 1.17941
  • % chg. over the last day: -0.14
  • Day’s range: 1.18063 – 1.18152
  • 52 wk range: 1.0571 – 1.2557

The EUR/USD quotes slightly decreased during yesterday's trading session. Euro is under pressure due to political tension in Italy. The American currency was supported by Philadelphia Fed manufacturing index, which counted to 34.4 instead of the forecasted value of 21.0. At the moment, the trading instrument is consolidating. Local support and resistance levels are: 1.18000 and 1.18300, respectively. We recommend opening positions from these marks.

The news feed on the US economy and the Eurozone is calm.

EUR/USD

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is near the 0 mark.

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: 1.18000, 1.17650
  • Resistance levels: 1.18300, 1.18700, 1.19200

If the price fixes below the round level of 1.18000, the EUR/USD currency pair is expected to decline. The target movement level is 1.17650-1.17400.

Alternative option. If the price fixes above 1.18300, it is necessary to consider purchases of EUR/USD. The movement is tending potentially to 1.18700-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35192
  • Open: 1.35147
  • % chg. over the last day: +0.16
  • Day’s range: 1.35160 – 1.35280
  • 52 wk range: 1.2361 – 1.4345

Yesterday, there was a variety of trends on the GBP/USD currency pair. At the moment, the technical pattern is ambiguous. The trading instrument is in a sideways trend. Investors expect additional drivers. The key support and resistance levels are 1.35000 and 1.35400, respectively. We recommend opening positions from these marks.

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

GBP/USD

The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

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

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

Trading recommendations
  • Support levels: 1.35000, 1.34600
  • Resistance levels: 1.35400, 1.35800, 1.36200

If the price fixes below the round level of 1.35000, we recommend looking for entry points to the market to open short positions. The movement is tending potentially to 1.34600-1.34300.

An alternative may be the GBP/USD quotes growth to 1.35800-1.36000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27900
  • Open: 1.28010
  • % chg. over the last day: +0.38
  • Day’s range: 1.28031 – 1.28102
  • 52 wk range: 1.2059 – 1.3795

Yesterday, the bullish sentiment was observed on the USD/CAD currency pair. The growth of quotes exceeded 70 points. Today, investors have taken a wait-and-see attitude before publication of important economic reports from Canada. At the moment, the key support and resistance levels are: 1.27900 and 1.28300, respectively. The positions should be opened from these marks.

At 15:30 (GMT+3:00) reports on inflation and retail sales in Canada will be published.

USD/CAD

Indicators do not send accurate signals: the price is crossing 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 USD/CAD.

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

Trading recommendations
  • Support levels: 1.27900, 1.27500
  • Resistance levels: 1.28300, 1.28800, 1.29300

If the price fixes above 1.28300, the USD/CAD quotes are expected to rise. The movement is tending potentially to 1.28800-1.29000.

An alternative may be the decline in the USD/CAD currency pair to 1.27500-1.27300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.386
  • Open: 110.760
  • % chg. over the last day: +0.42
  • Day’s range: 110.810 – 110.886
  • 52 wk range: 104.56 – 114.74

Yesterday, there were aggressive purchases on the USD/JPY currency pair. The growth of quotes exceeded 70 points. The US dollar strengthened against the 10-year US government bonds yield growth. At the moment, the key support and resistance levels are: 110.700 and 111.000, respectively. The positions should be opened from these marks.

The news feed on Japan economy is calm.

USD/JPY

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/JPY.

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

Trading recommendations
  • Support levels: 110.700, 110.350, 110.000
  • Resistance levels: 111.000, 111.300

If the price fixes above the round level of 111.000, further growth of the USD/JPY currency pair is expected. The movement is tending potentially to 111.300-111.500.

Alternative option. If the price fixes below the support of 110.700, correction movement is expected. The target movement level is 110.350-110.000.

by JustForex, 2018.05.18

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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