The Analytical Overview of the Main Currency Pairs on 2017.05.31

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11631
  • Open: 1.11861
  • % chg. for the last day: +0.18
  • Day's range': 1.11642 – 1.11951
  • 52 wk range: 1.0366 – 1.1616

Yesterday's trading on EUR/USD was very active. At the same time, there was no trend movement. The session ended with a slight strengthening of the euro. At the moment, the technical pattern is ambiguous. The key trading range is 1.11600-1.12000. We are waiting for the release of important economic reports.

The Economic calendar for 2017.05.31:
  • – statistics on the German labor market at 10:55 (GMT+3:00);
  • – the data on inflation in the Eurozone at 12:00 (GMT+3:00);
  • – the index of pending sales in the real estate market in the USA at 17:00 (GMT+3:00);
  • – Fed's Beige Book at 21:00 (GMT+3:00).
EUR/USD

The price has fixed between the 50 MA and 200 MA, which act as strong dynamic levels of support and resistance.

The MACD histogram is in the positive zone and continues to rise, which signals a bullish sentiment on EUR/USD.

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

Trading resommendations
  • Support levels: 1.11600, 1.11150
  • Resistance levels: 1.12000, 1.12500

If economic reports from the EU are positive, the EUR/USD currency pair may rise to the resistance level of 1.12500.

An alternative may be a downward trend on EUR/USD to the level of 1.11350-1.11150.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28391
  • Open: 1.28550
  • % chg. for the last day: +0.13
  • Day's range': 1.27879 – 1.28642
  • 52 wk range: 1.1986 – 1.5020

During the Asian trading session the aggressive sales were observed on GBP/USD. The pound remains under pressure against the background of the rising political risks in the UK. At the moment, the currency is testing a round level of 1.28000. The nearest resistance is at the level of 1.28500.

The news background on the economy of Britain is calm today. We recommend you to pay attention to statistics from the USA.

GBP/USD

The GBP/USD quotes have fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone and below the signal line, which signals a downward trend on GBP/USD.

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: 1.28000
  • Resistance levels: 1.28500, 1.28850, 1.29300

If the price fixes below the round level of 1.28000, we recommend looking for entry points to the market in order to open short positions. The movement is tending potentially to 1.27500.

Alternative option. If the GBP/USD quotes fix above the resistance level of 1.28500, a bullish mood may prevail in the trading instrument. The target movement level is 1.28850-1.29300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34449
  • Open: 1.34595
  • % chg. for the last day: +0.04
  • Day's range': 1.34354 – 1.34726
  • 52 wk range: 1.2458 – 1.4692

Yesterday the USD/CAD currency pair again tested the limits of the key trading range 1.34400-1.34900. Over the last trading sessions, there were no unidirectional trends. At the moment, the technical pattern is ambiguous. Participants of the financial markets expect economic reports from Canada.

At 15:30 (GMT+3:00) the statistics on Canada's GDP for the first quarter of this year will be published.

USD/CAD

The price is close to 50 MA and 200 MA, which acts as a strong dynamic resistance.

The MACD histogram has begun to decline and moved to the negative zone, indicating a fall in USD/CAD.

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

Trading recommendations
  • Support levels: 1.34400, 1.33900
  • Resistance levels: 1.34900, 1.35400

If the data on Canada's GDP are positive, the bearish sentiment may prevail in the USD/CAD currency pair. The immediate goal for profit taking is 1.33900-1.33750.

An alternative may be the growth of USD/CAD to the resistance level of 1.35400.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.240
  • Open: 110.832
  • % chg. for the last day: -0.37
  • Day's range': 110.746 – 111.224
  • 52 wk range: 99.08 – 123.69

The bearish sentiment prevails in USD/JPY. At the moment, the following key support and resistance levels can be identified: 110.700 and 111.200, respectively. During the Asian trading session, the yen did not change significantly. We are waiting for statistics from the USA.

In April, the volume of industrial production in Japan increased by 4.0%. At the same time, it was significantly less than the forecast value (+4.3%).

USD/JPY

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

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

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: 110.700, 110.300
  • Resistance levels: 111.200, 111.650

We expect a downward trend in USD/JPY. If the price fixes below the 110.900 level, we recommend considering sales. The movement is tending potentially to 110.300. When tracking the position, it is better to use a trailing stop.

Alternative option. If the price overcomes the resistance level of 111.200, the USD/JPY currency pair may rise to the level of 111.500-111.650.

by JustForex, 2017.05.31

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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.