The Analytical Overview of the Main Currency Pairs on 2018.09.03

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16639
  • Open: 1.15958
  • % chg. over the last day: -0.60
  • Day's range: 1.15889 – 1.16155
  • 52 wk range: 1.0571 – 1.2557

The EUR/USD currency pair is decreasing. On Friday, August 31, the drop in quotes exceeded 70 points. The trading instrument has updated local extremes. At the moment, the EUR/USD currency pair is consolidating near the local support of 1.15900. The key resistance is a mark of 1.16300. The trade conflict between the United States and China is in the focus of attention. The EUR/USD quotes have the potential for further correction. We recommend opening positions from the key levels.

The news feed on 2018.09.03:
  • - The index of economic activity in the manufacturing sector in Germany at 10:55 (GMT+3:00).

The US financial markets are closed due to the holiday.

EUR/USD

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

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

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.15900, 1.15550, 1.15300
  • Resistance levels: 1.16300, 1.16600, 1.16900

If the price fixes below the local support of 1.15900, further correction of the EUR/USD currency pair is expected. The movement is tending to 1.15550-1.15300.

Alternative option. If the price fixes above 1.16300, we recommend considering purchases of EUR/USD. The movement is tending to 1.16600-1.16900.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30053
  • Open: 1.29131
  • % chg. over the last day: -0.36
  • Day's range: 1.29032 – 1.29335
  • 52 wk range: 1.2361 – 1.4345

The bearish sentiment prevails on the GBP/USD currency pair. Today, the trading instrument has opened with gap down more than 40 points. At the moment, quotes are consolidating in the range of 1.29000-1.29350. We do not rule out a further decline in the GBP/USD currency pair. We recommend following the current news regarding Brexit. Positions should be opened from the key levels.

Important economic reports on 2018.09.03:
  • - The index of economic activity in the UK manufacturing sector at 11:30 (GMT+3:00).
GBP/USD

Indicators do not send accurate signals. The price is testing 200 MA.

The MACD histogram is in the negative zone and continues to decline, which signals a further drop in the GBP/USD quotes.

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: 1.29000, 1.28600, 1.28300
  • Resistance levels: 1.29350, 1.29850, 1.30350

If the price fixes below the round level of 1.29000, further fall of the GBP/USD currency pair is expected. The target movement level is 1.28600-1.28300.

Alternative option. If the price fixes above 1.29350, we recommend considering purchases of GBP/USD. The target movement level is 1.29750-1.29900.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29708
  • Open: 1.30722
  • % chg. over the last day: +0.45
  • Day's range: 1.30464 – 1.30759
  • 52 wk range: 1.2059 – 1.3795

The technical pattern on the USD/CAD currency pair is ambiguous. At the moment, quotes are consolidating. The key support and resistance levels are 1.30500 and 1.30850, respectively. We recommend opening positions from these marks. Investors expect new information regarding the NAFTA negotiations.

Financial markets of Canada are closed due to the holiday.

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 near the oversold zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.30500, 1.30200, 1.29850
  • Resistance levels: 1.30850, 1.31000

If the price fixes above the resistance level of 1.30850, the USD/CAD quotes are expected to grow. The movement is tending to 1.31200-1.31400.

Alternative option. If the price fixes below 1.30500, it is necessary to consider sales of USD/CAD. The movement is tending to 1.30200-1.29850.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.965
  • Open: 111.051
  • % chg. over the last day: +0.05
  • Day's range: 110.850 – 111.118
  • 52 wk range: 104.56 – 114.74

The USD/JPY currency pair is in a sideways trend. The technical pattern is ambiguous. At the moment, local support and resistance levels are 110.750 and 111.000, respectively. The trading instrument has the potential for further reduce. We recommend opening positions from the key levels.

Today, the news feed on the economy of Japan is calm.

USD/JPY

Indicators do not send accurate signals: 50 MA has crossed 200 MA.

The MACD histogram has moved to the negative zone, which indicates the bearish sentiment.

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

Trading recommendations
  • Support levels: 110.750, 110.450, 110.250
  • Resistance levels: 111.000, 111.300, 111.500

If the price fixes below the support level of 110.750, the USD/JPY quotes are expected to fall further. The movement is tending to 110.450-110.250.

Alternative option. If the price fixes above the round level of 111.000, it is necessary to consider purchases of USD/JPY. The movement is tending to 111.300-111.500.

by JustForex, 2018.09.03

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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