The Analytical Overview of the Main Currency Pairs on 2018.12.19

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13472
  • Open: 1.13623
  • % chg. over the last day: +0.26
  • Day's range: 1.13600 – 1.14048
  • 52 wk range: 1.1214 – 1.2557

USD is weakening against the major currencies. The USD index (#DX) is consolidating around the monthly minimums. The investors are looking forward to the Federal Reserve meeting. The Central Bank is supposed to increase the key interest range by 25 basis points to 2.25%-2.50%. The USD remains under pressure until the decision is made since there is a suspicion that the Federal Reserve is not interested in changing the monetary policy. You should keep an eye on the comments and rhetorics by the Federal Reserve representatives while opening positions from the key range of 1,13700-1,14000.

The Economic News Feed for 19.12.2018:

  • - Secondary Real Estate Sales (US) – 17:00 (GMT+2:00);
  • - Federal Reserve Decision on Key Interest Range (US) – 00:00 (GMT+2:00);
EUR/USD

The indicators do not provide precise signals, 50 MA is crossing 200 MA. There are no signals at the moment.

MACD is in the positive zone and keeps rising, which points toward the further growth of the EUR/USD.

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

Trading recommendations
  • Support levels: 1.13700, 1.13350, 1.13150
  • Resistance levels: 1.14000, 1.14350

If the price fixes above the round 1.14000 you can expect further growth toward 1.14500-1.14750.

Alternatively, the currency pair can descend toward 1.13400-1.13000

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26132
  • Open: 1.26300
  • % chg. over the last day: +0.21
  • Day's range: 1.26273 – 1.26791
  • 52 wk range: 1.2477 – 1.4378

The GBP/USD technical picture is highly ambiguous. The pound is moving sidewards. The investors are waiting for additional drivers. Today the attention of the financial market participants is focused on the Federal Reserve meeting. You should open positions from the key levels 1.26200 and 1.26800 and keep an eye on the economic reports from the UK.

The Economic News Feed for 19.12.2018:

  • - Inflation Report (UK) – 11:30 (GMT+2:00);
GBP/USD

Indicators do not provide precise signals, 50 MA is over 200 MA.

The MACD histogram is in the positive zone but below the signal line, which gives a weak signal towards buying GBP/USD.

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

Trading recommendations
  • Support levels: 1.26200, 1.25700, 1.25300
  • Resistance levels: 1.26800, 1.27550, 1.28000

If the price fixes above the 1.26800 mark, consider buying GBP/USD. The movement will tend toward 1.27500-1.27750.

Alternatively, the currency pair can descend toward the round 1.26000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34063
  • Open: 1.34624
  • % chg. over the last day: +0.37
  • Day's range: 1.34488 – 1.34800
  • 52 wk range: 1.2248 – 1.3496

USD/CAD keep showing a positive trend. The quotes grew by more than 70 points yesterday and updated the monthly maximums. The pressure on the CAD is caused by the drop of the oil quotes. You should open positions from the local support and resistance of 1.34450 and 1.34900. Investors are waiting for the Federal Reserve decision on the key interest rate.

At 15:30 (GMT+2:00) Canada will publish an inflation report.

USD/CAD

The price has fixed above the 50 MA and 200 MA which points towards the power of the buyers.

The MACD histogram is in the positive zone and keeps rising, which points toward the growth of the USD/CAD.

The Stochastic Oscillator is in the overbought zone, the %K line is above the %D line which gives a weak signal to buy the USD/CAD.

Trading recommendations
  • Support levels: 1.34450, 1.34100, 1.33750
  • Resistance levels: 1.34900

If the price fixed above the support level of 1.34900, expect further growth of the USD/CAD. The movement will tend toward 1.35400-1.35600.

Alternatively the quotes fix below 1.34450 and you should look for the market entry points to open short positions. The movement will tend toward 1.34000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.823
  • Open: 112.497
  • % chg. over the last day: -0.27
  • Day's range: 112.189 – 112.601
  • 52 wk range: 104.56 – 114.56

USD/JPY is consolidating after a major drop-off since the beginning of the week. The technical picture is ambiguous. The local support and resistance levels are 112.250 and 112.450. The trading instrument can descend further. You should open positions from the key levels.

During the Asian trading session, Japan published weak trading balance reports.

USD/JPY

The indicators point toward the power of the sellers, the price fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone, the %K line is crossing the %D line. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 112.250, 112.000
  • Resistance levels: 112.450, 112.650, 112.850

If the price fixes below the 112.250 support level, expect further growth of the USD/JPY quotes. The movement will tend toward 111.750-111.500.

Alternatively the currency pair can recover toward 112.750-113.000.

by JustForex, 19.12.2018

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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