The Analytical Overview of the Main Currency Pairs on 2018.09.18

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16224
  • Open: 1.16827
  • % chg. over the last day: +0.40
  • Day's range: 1.16806 – 1.17003
  • 52 wk range: 1.0571 – 1.2557

Yesterday, the bullish sentiment was observed on the EUR/USD currency pair. Quotes rose by more than 70 points. The US dollar weakened against the basket of major currencies due to the escalation of trade conflict between the US and China. At the moment, EUR/USD quotes are consolidating. The key support and resistance levels are 1.16700 and 1.17000, respectively. We recommend opening positions from these marks.

The news feed is calm. We recommend paying attention to the speech by the ECB president Mario Draghi.

EUR/USD

Indicators point to the power of buyers: the price has fixed above 50 MA and 200 MA.

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

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

Trading recommendations
  • Support levels: 1.16700, 1.16300, 1.15900
  • Resistance levels: 1.17000, 1.17300

If the price fixes below 1.16700, the EUR/USD quotes are expected to decline. The movement is tending potentially to 1.16300-1.16000.

An alternative may be the further growth of the EUR/USD currency pair to the level of 1.17300-1.17600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30660
  • Open: 1.31328
  • % chg. over the last day: +0.57
  • Day's range: 1.31315 – 1.31528
  • 52 wk range: 1.2361 – 1.4345

Yesterday, the bullish sentiment was observed on the GBP/USD currency pair. The British pound strengthened against the US currency amid positive news about Brexit. At the moment, the technical pattern is ambiguous. The key support and resistance levels are: 1.31200 and 1.31600 respectively. The positions should be opened from these marks. In the near future, a technical correction is not ruled out.

The news feed on the UK economy is calm.

GBP/USD

Indicators point to the power of buyers: the price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy GBP/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: 1.31200, 1.30700, 1.30200
  • Resistance levels: 1.31600, 1.32000

If the price fixes above the resistance level of 1.31600, further growth of the GBP/USD quotes is expected. The movement is tending to 1.32000-1.32200.

An alternative may be the correction of the GBP/USD currency pair to 1.30700-1.30500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30292
  • Open: 1.30330
  • % chg. over the last day: +0.15
  • Day's range: 1.30312 – 1.30373
  • 52 wk range: 1.2059 – 1.3795

The technical pattern on the USD/CAD currency pair is ambiguous. The trading instrument is consolidating. Financial market participants expect additional drivers. Local support and resistance levels are: 1.30100 and 1.30500, respectively. We recommend opening positions from these marks. A trading instrument is tending to recover.

The news feed on the economy of Canada is calm.

USD/CAD

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

The MACD histogram is near 0 mark.

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

Trading recommendations
  • Support levels: 1.30100, 1.29800
  • Resistance levels: 1.30500, 1.30800, 1.31200

If the price fixes below the support of 1.30100, the USD/CAD quotes are expected to decline. The movement is tending to 1.29800-1.29500.

Alternative option. If the price fixes above 1.30500, it is necessary to consider purchases of USD/CAD. The target movement level is 1.30800-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.005
  • Open: 111.839
  • % chg. over the last day: -0.25
  • Day's range: 111.914 – 112.235
  • 52 wk range: 104.56 – 114.74

There is a variety of trends on the USD/JPY currency pair. Local support and resistance levels are: 111.900 and 112.250, respectively. The positions should be opened from these marks. Investors expect additional drivers. We recommend paying attention to the US government bonds yield.

The news feed on the economy of Japan is calm.

USD/JPY

Indicators do not send accurate signals: the price is testing 50 MA.

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

Stochastic Oscillator has started moving out the overbought zone, the %K line is below the %D line, which gives the signal to sell USD/JPY.

Trading recommendations
  • Support levels: 111.900, 111.550, 111.250
  • Resistance levels: 112.250, 112.600

If the price fixes above the resistance level of 112.250, the USD/JPY quotes are expected to rise. The movement is tending to 112.600-112.800.

Alternative option. If the price fixes below the level of 111.900, we recommend looking for entry points to the market to open short positions. The target movement level is 111.550-111.250.

by JustForex, 2018.09.18

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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