The Analytical Overview of the Main Currency Pairs on 2018.10.17

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.15789
  • Open: 1.15795
  • % chg. over the last day: -0.03
  • Day's range: 1.15559 – 1.15721
  • 52 wk range: 1.0571 – 1.2557

Since the beginning of the current week, the EUR/USD currency pair has been in a sideways trend. Unidirectional trend is not observed. The euro is under pressure after the publication of the ZEW economic sentiment index in Germany, which counted to -24.7 in October instead of -12.3. At the moment, the local support and resistance levels are: 1.15500 and 1.15850, respectively. We recommend opening positions from these marks. Financial market participants expect the publication of the FOMC meeting minutes, which may indicate a further Fed's key interest rate raising.

Economic calendar on 17.10.2018:
  • - Consumer price index in the Eurozone at 12:00 (GMT+3:00);
  • - Statistics on the real estate market in the United States at 15:30 (GMT+3:00);
  • - Publication of the FOMC meeting minutes at 21:00 (GMT+3:00).
EUR/USD

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

The MACD histogram is in the negative zone and below the signal line, which gives a signal to sell EUR/USD.

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

Trading recommendations
  • Support levels: 1.15500, 1.15200, 1.14900
  • Resistance levels: 1.15850, 1.16200

If the price fixes above the resistance level of 1.15850, the EUR/USD quotes are expected to grow. The movement is tending to 1.16200-1.16400.

An alternative may be a decrease in the EUR/USD currency pair to the level of 1.15200-1.14900.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31509
  • Open: 1.31783
  • % chg. over the last day: +0.27
  • Day's range: 1.31532 – 1.31897
  • 52 wk range: 1.2361 – 1.4345

There is a variety of trends on the GBP/USD currency pair after the publication of ambiguous reports on the UK labor market. Thus, average earnings taking into account bonuses increased by 2.7% in August instead of 2.6%. However, the number of jobless claims rose to 18.5K in August, while experts expected 4.5K. The key support and resistance levels are: 1.31400 and 1.31900, respectively. Investors expect new information regarding the Brexit process. Positions should be opened from the key levels.

Economic calendar on 17.10.2018:
  • - Consumer price index in the UK at 11:30 (GMT+3:00).
GBP/USD

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

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 crossing the %D line. There are no signals.

Trading recommendations
  • Support levels: 1.31400, 1.31000, 1.30600
  • Resistance levels: 1.31900, 1.32300, 1.32600

If the price fixes above the resistance level of 1.31900, the GBP/USD quotes are expected to rise. The movement is tending to 1.32300-1.32600.

An alternative may be the decrease in the GBP/USD currency pair to 1.31000-1.30600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29915
  • Open: 1.29331
  • % chg. over the last day: -0.43
  • Day's range: 1.29533 – 1.29546
  • 52 wk range: 1.2059 – 1.3795

The USD/CAD currency pair has been declining. At the moment, quotes are consolidating. Financial markets participants took a wait-and-see attitude before publication of the FOMC meeting minutes. Local support and resistance levels are: 1.29400 and 1.29650, 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 point to the power of sellers: the price is being traded below 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: 1.29400, 1.29150, 1.28800
  • Resistance levels: 1.29650, 1.30000, 1.30300

If the price fixes below the support of 1.29400, it is necessary to look for entry points to the market to open short positions. The target movement level is 1.29150-1.28800.

Alternative option. If the price fixes above the resistance level of 1.29650, the USD/CAD quotes growth is expected. The movement is tending to 1.30000-1.30300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.767
  • Open: 112.258
  • % chg. over the last day: -0.33
  • Day's range: 112.154 – 112.235
  • 52 wk range: 104.56 – 114.74

Yesterday, the bullish sentiment was observed on the USD/JPY currency pair. The growth of quotes exceeded 50 points. At the moment, the trading instrument is consolidating. Local support and resistance levels are: 112.000 and 112.400, 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 is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

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

Trading recommendations
  • Support levels: 112.000, 111.650
  • Resistance levels: 112.400, 112.750, 113.000

If the price fixes above the resistance level of 112.400, further growth of the USD/JPY quotes is expected. The movement is tending to 112.750-113.000.

Alternative option. If the price fixes below the round level of 112.000, we recommend looking for entry points to the market to open short positions. The target movement level is 111.700-111.500.

by JustForex, 2018.10.17

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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