The Analytical Overview of the Main Currency Pairs on 2018.08.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14808
  • Open: 1.15703
  • % chg. over the last day: +0.83
  • Day's range: 1.15651 – 1.15767
  • 52 wk range: 1.0571 – 1.2557

Yesterday, there were aggressive purchases on the EUR/USD currency pair. The growth of quotes exceeded 100 points. At the moment, the key support and resistance levels are 1.15400 and 1.15900, respectively. We recommend opening positions from these marks. The trading instrument has the potential for further growth. Investors took a wait-and-see attitude before the publication of the FOMC minutes.

The news feed on 2018.08.22:
  • - Existing home sales in the US at 17:00 (GMT+3:00);
  • - Publication of the FOMC minutes at 21:00 (GMT+3:00).
EUR/USD

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

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

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a decrease in quotes.

Trading recommendations
  • Support levels: 1.15400, 1.14800, 1.14300
  • Resistance levels: 1.15900, 1.16200, 1.16500

If the price fixes above the resistance level of 1.15900, further growth of the EUR/USD currency pair is expected. The movement is tending to 1.16200-1.16500.

Alternative option. If the price fixes below the "mirror" support of 1.15400, we recommend considering sales of EUR/USD. The movement is tending to 1.14900-1.14500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27944
  • Open: 1.28750
  • % chg. over the last day: +0.84
  • Day's range: 1.28938 – 1.29132
  • 52 wk range: 1.2361 – 1.4345

Yesterday, aggressive purchases prevailed on the GBP/USD currency pair. The growth of quotes exceeded 100 points. At the moment, local support and resistance levels are 1.29200 and 1.28700, respectively. The positions should be opened from these marks. The trading instrument has the potential for further recovery.

The news feed on the UK economy is calm.

GBP/USD

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 GBP/USD.

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

Trading recommendations
  • Support levels: 1.28700, 1.28200, 1.27700
  • Resistance levels: 1.29200, 1.29500

If the price fixes above 1.29200, GBP/USD currency pair is expected to grow. The target movement level is 1.29500-1.29700.

Alternative option. If the price fixes below 1.28700, the correction of GBP/USD quotes is expected. The target movement level is 1.28400-1.28200.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30437
  • Open: 1.30367
  • % chg. over the last day: -0.09
  • Day's range: 1.30246 – 1.30413
  • 52 wk range: 1.2059 – 1.3795

The technical pattern on the USD/CAD currency pair is ambiguous. The trading instrument is in a sideways trend. At the moment, financial market participants expect additional drivers. Local support and resistance levels are 1.30150 and 1.30450, respectively. We recommend opening positions from these marks.

At 15:30 (GMT+3:00) a report on retail sales will be published in Canada.

USD/CAD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.30150, 1.29800
  • Resistance levels: 1.30450, 1.30700, 1.31000

If the price fixes below 1.30150, the USD/CAD quotes are expected to decline. The movement is tending to 1.29800-1.29600.

Alternative option. If the price fixes above the resistance of 1.30450, it is necessary to consider purchases of USD/CAD. The movement is tending to 1.30700-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.063
  • Open: 110.231
  • % chg. over the last day: +0.05
  • Day`s range: 110.413 – 110.428
  • 52 wk range: 104.56 – 114.74

There is a variety of trends on the USD/JPY currency pair. Investors expect an additional drivers. At the moment, local support and resistance levels are 110.200 and 110.550, respectively. The positions should be opened from these marks. We recommend paying attention to the FOMC minutes.

The news feed on the economy of Japan is calm.

USD/JPY

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

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

Stochastic Oscillator is located near the overbought zone, the %K line is below the %D line, which indicates a decrease in quotes.

Trading recommendations
  • Support levels: 110.200, 109.850
  • Resistance levels: 110.550, 110.850, 111.150

If the price fixes above the resistance level of 110.550, the USD/JPY currency pair is expected to grow. The movement is tending to 110.850-111.000.

Alternative option. If the price fixes below 110.200, it is necessary to consider sales of USD/JPY. The movement is tending to 109.850-109.500.

by JustForex, 2018.08.22

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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