The Analytical Overview of the Main Currency Pairs on 2018.10.25

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14698
  • Open: 1.13914
  • % chg. over the last day: -0.63
  • Day's range: 1.13913 – 1.14199
  • 52 wk range: 1.1299 – 1.2557

During yesterday's trading, the euro continued to lose ground against the US dollar. EUR/USD fell by more than 80 points and updated local minima. Weak statistics on economic activity in Germany and the Eurozone put pressure on the single currency. At the moment, the trading instrument is consolidating in the range of 1.13850-1.14200. Investors took a wait-and-see attitude before the ECB meeting. It is expected that the regulator will keep the main parameters of monetary policy at the same level. We recommend paying attention to the comments and rhetoric by the Central Bank representatives.

The news feed on 25.10.2018:
  • - The ECB decision on interest rate at 14:45 (GMT+3:00);
  • - Statistics on orders for durable goods in the United States at 15:30 (GMT+3:00);
  • - The index of pending sales in the US real estate market at 17:00 (GMT+3:00).
EUR/USD

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

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

The Stochastic Oscillator is in the neutral zone, the% K line is below the% D line, indicating a drop in EUR/USD quotes.

Trading recommendations
  • Support levels: 1.13850, 1.13500, 1.13000
  • Resistance levels: 1.14200, 1.14500, 1.14850

If the price fixes below the local support level of 1.13850, a further fall in the EUR/USD quotes is expected. The movement is tending to 1.13300-1.13000.

Alternative option. If the price fixes above 1.14200, it is necessary to look for entry points to the market in order to open long positions. The movement is tending to 1.14500-1.14850.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29821
  • Open: 1.28794
  • % chg. over the last day: -0.76
  • Day's range: 1.28732 – 1.29195
  • 52 wk range: 1.2662 – 1.4378

Yesterday aggressive sales were observed on the GBP/USD currency pair. Drop in quotes exceeded 100 pips. The trading instrument has set new monthly lows. At the moment, the pound is in a sideways trend. Local levels of support and resistance are: 1.28750 and 1.29250, respectively. Positions must be opened from these marks. The GBP/USD quotes are tending to decline.

Publication of important economic reports from the UK is not planned.

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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.28750, 1.28400, 1.28000
  • Resistance levels: 1.29250, 1.29850, 1.30200

If the price fixes below the support level of 1.28750, a further fall in the GBP/USD currency pair is expected. The movement is tending to 1.28400-1.28000.

Alternative option. If the price fixes above 1.29250, it is necessary to consider buying GBP/USD. The movement is tending to 1.29600-1.29850.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30839
  • Open: 1.30556
  • % chg. over the last day: -0.28
  • Day's range: 1.30154 – 1.30567
  • 52 wk range: 1.2248 – 1.3387

Yesterday, the bearish sentiment prevailed on the USD/CAD currency pair. Trading instrument updated local lows. The Bank of Canada raised its key interest rate by 25 basis points to 1.75%. The demand for the Canadian dollar has increased significantly. At the moment, the USD/CAD quotes are consolidating in the range of 1.30200-1.30500. The USD/CAD currency pair is tending to decline. Positions must be opened from the key levels.

Today, the news feed on the Canadian economy is calm.

USD/CAD

Indicators do not send accurate signals: the price is testing 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 above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.30200, 1.29850, 1.29600
  • Resistance levels: 1.30500, 1.30800, 1.31200

If the price fixes below the local support of 1.30200, a further fall in the USD/CAD quotes is expected. The movement is tending to 1.29700-1.29500.

Alternative option. If the price fixes above 1.30500, the growth of the USD/CAD currency pair is expected. The target level for profit taking is 1.30800-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.406
  • Open: 112.214
  • % chg. over the last day: -0.39
  • Day's range: 111.819 – 112.363
  • 52 wk range: 104.56 – 114.74

The technical pattern on the USD/JPY currency pair is still ambiguous. At the moment, the trading instrument is testing local support and resistance levels: 112.000 and 112.350, respectively. Financial market participants expect additional drivers. Positions must be opened from the key levels. We recommend paying attention to the dynamics of US government bonds.

The news feed on the Japanese economy is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 112.000, 111.650
  • Resistance levels: 112.350, 112.650, 112.900

If the price fixes above 112.350, the growth of the USD/JPY quotes is expected. The movement is tending to 112.650-112.900.

An alternative could be a decline in the USD/JPY currency pair to 111.650-111.500.

by JustForex, 2018.10.25

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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