The Analytical Overview of the Main Currency Pairs on 2018.10.19

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.15789
  • Open: 1.14521
  • % chg. over the last day: -0.41
  • Day's range: 1.14329 – 1.14602
  • 52 wk range: 1.0571 – 1.2557

Yesterday, the bearish sentiment was observed on the EUR/USD currency pair. The US currency was supported by positive economic data. In October, Philadelphia Fed manufacturing index counted to 22.2 and was better than the expected value of 19.7. Fed officials plan to adhere to the current monetary policy tightening. At the moment, the key support and resistance levels are: 1.14300 and 1.14600, respectively. Trading instrument has the potential for further decline. We recommend opening positions from the key levels.

Important economic reports on 19.10.2018:
  • - Existing home sales in the US at 17:00 (GMT+3:00).
EUR/USD

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

The MACD histogram is 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: 1.14300, 1.14000
  • Resistance levels: 1.14600, 1.15000, 1.15400

If the price fixes below the support level of 1.14300, a further fall in the EUR/USD quotes is expected. The movement is tending to 1.14000-1.13750.

An alternative may be the correction of the EUR/USD currency pair to the level of 1.14800-1.15000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31509
  • Open: 1.30171
  • % chg. over the last day: -0.74
  • Day's range: 1.30122 – 1.30383
  • 52 wk range: 1.2361 – 1.4345

There are aggressive sales on the GBP/USD currency pair. The British pound weakened significantly against the US dollar due to weak retail sales statistics. The key support and resistance levels are: 1.30000 and 1.30400, respectively. Positions should be opened from these marks. Trading instrument has the potential for further decline.

We recommend paying attention to the speech by the Bank of England governor.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.30000, 1.29700
  • Resistance levels: 1.30400, 1.30800, 1.31200

If the price fixes below the round level of 1.30000, a further decrease in the GBP/USD quotes is expected. The movement is tending to 1.29700-1.29500.

An alternative may be the GBP/USD currency pair growth to the level of 1.30750-1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29915
  • Open: 1.30833
  • % chg. over the last day: +0.47
  • Day's range: 1.30536 – 1.30666
  • 52 wk range: 1.2059 – 1.3795

The USD/CAD currency pair moved away from monthly highs. At the moment, the technical pattern is ambiguous. Local support and resistance levels are: 1.30400 and 1.30650, respectively. Positions should be opened from these marks. In the near future, correction of the USD/CAD quotes is not excluded after a prolonged growth.

The news feed on 19.10.2018:
  • - Reports on inflation and retail sales in Canada at 15:30 (GMT+3:00).
USD/CAD

Indicators point to the power of buyers: the price is above 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 moving out of the oversold zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.30400, 1.30100, 1.29800
  • Resistance levels: 1.30650, 1.30850, 1.31000

If the price fixes below the local support of 1.30400, it is necessary to look for entry points to the market to open short positions. The target movement level is 1.30100-1.29800.

Alternative option. If the price fixes above the resistance of 1.30650, the USD/CAD quotes growth is expected. The movement is tending to the round level of 1.31000.

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

There is a variety of trends on the USD/JPY currency pair. Investors expect additional drivers. At the moment, local support and resistance levels are: 112.300 and 112.550, respectively. Positions should be opened from these marks. We recommend paying attention to the US government bonds yield.

Publication of important economic reports from Japan is not planned.

USD/JPY

Indicators do not send accurate signals: 50 MA is crossing 200 MA.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 112.300, 112.000, 111.700
  • Resistance levels: 112.550, 112.850

If the price fixes above the resistance level of 112.550, the USD/JPY quotes growth is expected. The movement is tending to 113.000-113.250.

Alternative option. If the price fixes below 112.300, we recommend looking for entry points to the market to open short positions. The target movement level is 112.000-111.700.

by JustForex, 2018.10.19

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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