The Analytical Overview of the Main Currency Pairs on 2017.05.25

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11827
  • Open: 1.12185
  • % chg. for the last day: +0.32
  • Day's range: 1.12105 – 1.12448
  • 52 wk range: 1.0366 – 1.1616

During yesterday's trading, the US dollar fell against major world currencies. According to the FOMC protocols, most representatives of the Fed believe that an increase in interest rates in the near future will be appropriate. At the same time, the Central Bank intends to receive confirmation that the slowdown of the country's economy in the first quarter was temporary. Pressure on the US currency is also caused by weak economic reports on the real estate market in the United States. At the moment the bullish sentiment prevails on EUR/USD.

Today, the news background is rather calm. We recommend you to pay attention to the following statistics from the USA:
  • – the balance of foreign trade in goods (15:30 GMT+3:00);
  • – the number of initial claims for unemployment benefits (15:30 GMT+3:00).
EUR/USD

ИIndicators point the strength of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive area and above the signal line, which signals an increase in the EUR/USD currency pair.

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

Trading recommendations
  • Support levels: 1.11600, 1.11000
  • Resistance levels: 1.12600

We recommend looking for entry points to the market in order to open long positions. If the price consolidates above the resistance level of 1.12600, it is necessary to consider purchases. The movement is tending potentially to the round level 1.13000.

Alternative option. If the price fixes below the level of 1.12000, a correction may develop on the EUR/USD currency pair. The target movement level is 1.11600-1.11500.

The GBP/USD currency pait

Technical indocators of the currency pair
  • Prev Open: 1.29591
  • Open: 1.29700
  • % chg. for the last day: +0.09
  • Day's range: 1.29637 – 1.29946
  • 52 wk range: 1.1986 – 1.5020

Yesterday, trading on the GBP/USD was very active. However, a unidirectional trend was not observed. At the moment, GBP/USD is in the key trading range of 1.29600-1.30000. We are waiting for statistics on UK GDP. Most experts believe that the country's economic growth (in annual terms) will remain at the same level of 2.1%.

Economic reports from Britain:
  • – data on the country's GDP (11:30 GMT+3:00);
  • – the number of approved BBA mortgage loans (11:30 GMT+3:00);
  • – the business investment (11:30 GMT+3:00).
GBP/USD

At the moment the price is close to 50 MA and 200 MA, which are strong dynamic supports.

The MACD histogram has moved to the positive zone and is located above the signal line, which indicates the strength of buyers at GBP/USD.

Stochastic Oscillator has begun to exit the overbought zone, the %K line is below the %D line, which gives a signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.29600, 1.29000
  • Resistance levels: 1.30000, 1.30400

If economic reports from Britain are positive, an upward trend towards 1.30400-1.30500 may develop on the GBP/USD currency pair.

Alternative option. If the GBP/USD quotes fix below the support level of 1.29600, we recommend considering sales. The movement is tending potentially to 1.29300-1.29000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35120
  • Open: 1.34058
  • % chg. for the last day: -0.79
  • Day's range: 1.33866 – 1.34153
  • 52 wk range: 1.2458 – 1.4692

At the moment there is an increased demand for the Canadian dollar. Yesterday, the drop in the USD/CAD quotations exceeded 100 points. The Bank of Canada kept the interest rate at the same level of 0.50%. The regulator noted positive changes in the country's economy. Support is also provided by the positive dynamics of the oil quotes.

There is no important news from Canada today.

USD/CAD

The USD/CAD quotes have fixed below 50 MA and 200 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.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the correction on the USD/CAD currency pair.

Trading recommendations
  • Support levels: 1.33900
  • Resistance levels: 1.34600, 1.35350, 1.36000

We believe that the downward trend in USD/CAD may continue. If the price consolidates below the local support 1.33900, we recommend you to look for entry points to the market to open short positions. The target level of movement is 1.33500-1.33250.

Alternative option. If the USD/CAD rate overcomes the resistance level of 1.34600, a correction to the mark of 1.35000-1.35350 may develop in the trading instrument.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.778
  • Open: 111.479
  • % chg. for the last day: -0.25
  • Day's range: 111.472 – 111.810
  • 52 wk range: 99.08 – 123.69

The technical pattern on USD/JPY is ambiguous. The yen continues to consolidate. At the moment, we can identify the key levels of support and resistance: 111.500 and 112.500. The market is waiting for additional drivers.

The publication of important economic reports from Japan is not planned today. We recommend paying attention to the news line from the USA.

USD/JPY

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is near the 0 mark.

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: 111.500, 110.900
  • Resistance levels: 112.000, 112.500

If the price consolidates below the support level of 111.500, it is necessary to consider selling USD/JPY. The movement is tending potentially to 111.000-110.900.

Alternative option. If the USD/JPY quotations overcome the round level of 112.000, we recommend looking for entry points to the market in order to open long positions. The immediate goal for profit-taking is 112.500.

by JustForex, 2017.05.25

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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.