The Analytical Overview of the Main Currency Pairs on 2018.10.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.15377
  • Open: 1.15789
  • % chg. over the last day: +0.28
  • Day's range: 1.15701 – 1.15909
  • 52 wk range: 1.0571 – 1.2557

Yesterday, the bullish sentiment was observed on the EUR/USD currency pair. The US dollar was under pressure due to weak retail sales data. At the moment, the EUR/USD quotes are consolidating. The key support and resistance levels are: 1.15700 and 1.16000, respectively. Trading instrument has the potential for further growth. We recommend opening positions from the key levels.

Economic calendar on 16.10.2018:
  • - German ZEW economic sentiment index at 12:00 (GMT+3:00);
  • - JOLTS job openings in the United States at 17:00 (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 near the 0 mark.

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

Trading recommendations
  • Support levels: 1.15700, 1.15400, 1.15000
  • Resistance levels: 1.16000, 1.16400

If the price fixes above the round level of 1.16000, a further increase of the EUR/USD quotes is expected. The movement is tending to 1.16400-1.16600.

An alternative may be a decrease in the EUR/USD currency pair to the level of 1.15400-1.15000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30805
  • Open: 1.31509
  • % chg. over the last day: +0.39
  • Day's range: 1.31543 – 1.31972
  • 52 wk range: 1.2361 – 1.4345

The British pound is still under pressure after it became known that the UK and the EU could not reach an agreement on Brexit. At the moment, the GBP/USD currency pair has recovered most of the losses. Key support and resistance levels are: 1.31500 and 1.32000, respectively. Investors expect new information regarding the Brexit process. Positions should be opened from the key levels.

Economic calendar on 16.10.2018:
  • - Report on the labor market in the UK at 11:30 (GMT+3:00).
GBP/USD

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

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

Stochastic oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.31500, 1.31100, 1.30700
  • Resistance levels: 1.32000, 1.32400

If the price fixed above the resistance level of 1.32000, the further growth of the GBP/USD quotes is expected. The movement is tending to 1.32400-1.32600.

An alternative may be the decrease of the GBP/USD currency pair to the level of 1.31100-1.30700.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30147
  • Open: 1.29915
  • % chg. over the last day: -0.22
  • Day's range: 1.29805 – 1.29969
  • 52 wk range: 1.2059 – 1.3795

Yesterday, aggressive sales were observed on the USD/CAD currency pair. Trading instrument has updated local lows. At the moment, quotes are consolidating. The technical pattern is ambiguous. Local support and resistance levels are: 1.29700 and 1.30000, respectively. Positions should be opened from these marks. The USD/CAD currency pair has the potential for further correction.

The news feed on the economy of Canada is calm.

USD/CAD

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

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

Trading recommendations
  • Support levels: 1.29700, 1.29400
  • Resistance levels: 1.30000, 1.30400, 1.30650

If the price fixes below the support of 1.29700, it is necessary to look for entry points to the market to open short positions. The target movement level is 1.29400-1.29200.

Alternative option. If the price fixes above the round level of 1.30000, the growth of the USD/CAD quotes is expected. The movement is tending to 1.30400-1.30600.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.131
  • Open: 111.767
  • % chg. over the last day: -0.33
  • Day's range: 112.089 – 112.129
  • 52 wk range: 104.56 – 114.74

Since the beginning of this week, trades on the USD/JPY currency pair have been rather active. At the same time, a unidirectional trend is not observed. At the moment, the local support and resistance levels are: 111.900 and 112.250, respectively. Positions should be opened from these marks. Trading instrument is tending to recover.

Publication of important economic reports from Japan is not planned.

USD/JPY

Indicators do not send accurate signals: the USD/JPY quotes have fixed between 50 MA and 200 MA.

The MACD histogram has moved into the positive zone, which indicates the bullish sentiment.

The Stochastic Oscillator is near the overbought zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 111.900, 111.600
  • Resistance levels: 112.250, 112.600, 113.000

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

Alternative option. If the price fixes below 111.900, we recommend looking for entry points to the market to open short positions. The target movement level is 111.600-111.400.

by JustForex, 2018.10.16

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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