The Analytical Overview of the Main Currency Pairs on 2018.10.26

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13914
  • Open: 1.13722
  • % chg. over the last day: -0.14
  • Day's range: 1.13580 – 1.13836
  • 52 wk range: 1.1299 – 1.2557

The single currency continues to show negative dynamics. The pressure is provided by weak economic reports from the eurozone. Yesterday, the EUR/USD quotes again updated local minima. The ECB, as expected, kept the main parameters of monetary policy at the same level. At the moment, the EUR/USD currency pair is consolidating in the range of 1.13550-1.13850. Positions must be opened from these marks.

The news feed on 26.10.2018:
  • At 15:30 (GMT+3:00) a report on US GDP will be published.

We also recommend paying attention to the speech of the ECB President Mario Draghi.

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 above the %D line, which indicates a possible correction of the EUR/USD quotes.

Trading recommendations
  • Support levels: 1.13550, 1.13000
  • Resistance levels: 1.13850, 1.14200, 1.14500

If the price fixes below the local support level of 1.13550, a further fall in the EUR/USD quotes is expected. The movement is tending to the round level of 1.13000.

Alternative option. If the price fixes above the “mirror” resistance of 1.13850, one should look for entry points to the market to open long positions. The movement is tending to 1.14200-1.14500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28794
  • Open: 1.28154
  • % chg. over the last day: -0.47
  • Day's range: 1.28026 – 1.28243
  • 52 wk range: 1.2662 – 1.4378

The GBP/USD currency pair continues to update local minima. During yesterday's trading, the drop in quotes exceeded 65 points. At the moment, the trading instrument is consolidating near the round level of 1.28000. The local resistance is the mark of 1.28300. Shortly technical correction is not excluded. We recommend opening positions from key levels.

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 is below the %D line, which also indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.28000, 1.27500
  • Resistance levels: 1.28300, 1.28750, 1.29100

If the price fixes below the round level of 1.28000, a further fall in the GBP/USD currency pair is expected. The movement is tending to 1.27600-1.27400.

Alternative option. If the price fixes above 1.28300, it is necessary to consider buying GBP/USD. The movement is tending to the "mirror" resistance level of 1.28750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30556
  • Open: 1.30677
  • % chg. over the last day: +0.14
  • Day's range: 1.30672 – 1.31439
  • 52 wk range: 1.2248 – 1.3387

The USD/CAD currency pair has been growing. During yesterday's and today's trading, the growth of quotes was more than 80 points. The trading instrument approached the key resistance of 1.31500. The 1.31200 mark is already a "mirror" support. The USD/CAD currency pair has the potential for further growth. We recommend paying attention to the US GDP report. Positions should be opened from the key levels.

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

USD/CAD

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

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

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31200, 1.30800, 1.30500
  • Resistance levels: 1.31500, 1.32000

If the price fixes above the level of 1.31500, further growth of the USD/CAD quotes is expected. The movement is tending to the round level of 1.32000.

An alternative may be the decrease of the USD/CAD currency pair to 1.30800-1.30600.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.214
  • Open: 112.397
  • % chg. over the last day: +0.07
  • Day's range: 111.990 – 112.440
  • 52 wk range: 104.56 – 114.74

The USD/JPY currency pair is still being traded in a prolonged flat. Unidirectional trend is not observed. At the moment, the USD/JPY quotes are testing the round level of 112.000. The nearest resistance is at 112.350. Investors expect a report on US GDP. Positions must be opened from key levels. We also recommend paying attention to the yield 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 has moved to the negative zone, indicating the bearish sentiment.

The Stochastic Oscillator is located near the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

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

If the price fixes below the support level of 112.000, the USD/JPY quotes are expected to fall. The movement is tending to 111.600-111.400.

An alternative could be the growth of the USD/JPY currency pair to 112.600-112.900.

by JustForex, 2018.10.26

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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