The Analytical Overview of the Main Currency Pairs on 2019.10.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10271
  • Open: 1.10322
  • % chg. over the last day: +0.05
  • Day's range: 1.10231 - 1.10373
  • 52 wk range: 1.0884 - 1.1623

Yesterday EUR/USD was highly active, yet without a defined trend. EUR keeps testing the levels at 1.10150-1.10400. The financial market participants are waiting or additional drivers, i.e. the progress in US/China negotiations. Further recovery is highly possible. You should open positions from the key levels.

The Economic News Feed for 16.10.2019:

  • - Inflation report (EU) – 12:00 (GMT+3:00);
  • - Retail sales report (US) – 15:30 (GMT+3:00);
  • - Federal Reserve Beige Book (US) – 21:00 (GMT+3:00);
EUR/USD

Indicators do not give accurate signals: the price crossed 50 MA and 100 MA..

The MACD histogram is in the positive zone and continues to rise, which signals a bullish mood.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.10150, 1.09900, 1.09650
  • Resistance levels: 1.10400, 1.10600

If the price consolidates above the resistance level of 1.10400, expect further growth of EUR/USD quotes to 1.10700-1.10900.

Alternatively, the quotes can correct toward1 1.09900-1.09700.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26237
  • Open: 1.26016
  • % chg. over the last day: -0.06
  • Day's range: 1.26008 - 1.26371
  • 52 wk range: 1.1959 - 1.3385

The GBP stabilized after a significant rally last week. Optimism over the settlement of the Brexit process began to weaken. EU diplomats said the bloc wants additional concessions from Prime Minister Boris Johnson. Currently, the GBP/USD currency pair is consolidating. The local support and resistance levels are: 1.25700 and 1.26450, respectively. We are expecting important economic reports from the UK. We recommend opening positions from key levels.

At 11:30 (GMT+3:00) UK will publish a labour market report.

GBP/USD

The price fixed above 50 MA and 100 MA, which signals the strength of buyers.

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

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

Trading recommendations
  • Support levels: 1.25700, 1.25150, 1.24250
  • Resistance levels: 1.26450, 1.27000

If the price consolidates above 1.26450, expect further growth toward 1.27000-1.27400.

Alternatively, the quotes could decrease toward 1.25200-1.24800.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32345
  • Open: 1.31988
  • % chg. over the last day: -0.21
  • Day's range: 1.31948 - 1.32127
  • 52 wk range: 1.2727 - 1.3664

USD/CAD currency pair continues to consolidate. There is no defined trend. CAD is currently testing local support and resistance levels at 1.31950 and 1.32200, respectively. Trading instrument can decline further. Financial market participants expect the release of important statistics. We also recommend that you pay attention to the dynamics of oil prices. You should open positions from the key levels.

Canada will publish an inflation report at 15:30 (GMT+3: 00).

USD/CAD

The price fixed below 50 MA and 100 MA, which signals the strength of sellers.

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

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

Trading recommendations
  • Support levels: 1.31950, 1.31700
  • Resistance levels: 1.32200, 1.32400, 1.32700

If the price consolidates below 1.31950, expect a further drop toward 1.31600-1.31400.

Alternative recommendations.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.397
  • Open: 108.848
  • % chg. over the last day: +0.38
  • Day's range: 108.600 - 108.862
  • 52 wk range: 104.97 - 114.56

USD/JPY currency pair continues to show positive trends. The trading instrument reached three-month highs. At the moment, USD/JPY quotes are consolidating. The local support and resistance levels are 108.600 and 108.900, respectively. Investors took a wait and see attitude before the release of important economic reports from the United States. We also recommend paying attention to the dynamics of yield on US government bonds. Positions must be opened from key levels.

The Economic News Feed for 16.10.2019 is calm.

USD/JPY

Indicators poin to the strength of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

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

Trading recommendations
  • Support levels: 108.600, 108.200, 107.850
  • Resistance levels: 108.900, 109.400, 109.600

If the price consolidates above 108.900, expect further growth toward 109.300-109.500.

Alternatively, expect the quotes to decrease toward 108.250-108.000.

by JustForex, 2019.10.16

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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