The Analytical Overview of the Main Currency Pairs on 2017.06.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12172
  • Open: 1.11438
  • % chg. over the last day: -0.65
  • Day' range: 1.11382 – 1.11588
  • 52 wk range: 1.0366 – 1.1616

During yesterday's trading, aggressive sales were observed on EUR/USD. The euro weakened against the US dollar by more than 80 points. Demand for the American currency remains at a fairly high level. At the moment, the key trading range is 1.11300-1.11700. We are waiting for data on inflation in the Eurozone.

The news background on 2017.06.16:
  • – The consumer price index in the Eurozone at 12:00 (GMT+3:00);
  • – Publication of statistics on the real estate market in the US at 15:30 (GMT+3:00);
  • – The indices of consumers' expectations and sentiments from the University of Michigan at 17:00 (GMT+3:00).
EUR/USD

The signals of the indicators are ambiguous. The price is below 50 MA and 200 MA.

The MACD histogram has fixed in the negative area, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals a correction of the EUR/USD currency pair.

Trading recommendations
  • Support levels: 1.11300
  • Resistance levels: 1.11700, 1.12200, 1.12800

If inflation in the Eurozone accelerates, the bullish sentiment may prevail on the EUR/USD currency pair. The movement is tending potentially to 1.12200.

An alternative may be a further drop in the EUR/USD quotes. The target level of movement is 1.11000-1.10750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27436
  • Open: 1.27477
  • % chg. over the last day: +0.02
  • Day's range: 1.27398 – 1.27855
  • 52 wk range: 1.1986 – 1.5020

The Bank of England, as expected, kept the key interest rate at the previous level of 0.25%. At the same time, three representatives of the Central Bank voted to tighten monetary and credit policy, which caused a sharp increase in the GBP/USD currency pair. The key levels of support and resistance still remain 1.27250 and 1.28000 respectively. It is better to open positions from these marks.

Important news from the UK is not expected today.

GBP/USD

The price is between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is located in the positive area and continues to rise, which indicates the growth of GBP/USD.

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

Trading recommendations
  • Support levels: 1.27250, 1.26500
  • Resistance levels: 1.28000, 1.28700

If the price fixes above the round level of 1.28000, we recommend looking for entry points to the market in order to open long positions. The movement is tending potentially to 1.28700.

Alternative option. If the GBP/USD quotes overcome the support level of 1.27250, it is necessary to consider sales. The target movement level is 1.26500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32394
  • Open: 1.32671
  • % chg. over the last day: +0.17
  • Day's range: 1.32404 – 1.32729
  • 52 wk range: 1.2458 – 1.4692

Yesterday, a correction was observed on USD/CAD. The currency has reached a round level of 1.33000. At the moment, the technical pattern is ambiguous. The nearest support is the mark of 1.32250. Demand for the American currency remains at a high level. We are waiting for statistics from the USA.

Today, the publication of important economic reports from Canada is not planned.

USD/CAD

The price is close to 50 MA, which acts as a fairly strong dynamic support.

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

Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations
  • Support levels: 1.32250, 1.31700
  • Resistance levels: 1.33000, 1.33500

If the statistics from the US turns out to be positive, a bullish sentiment may prevail on the USD/CAD currency pair. The movement is tending potentially to 1.33000-1.33500.

Alternatively, USD/CAD may further fall. The target movement level is 1.31700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.550
  • Open: 110.901
  • % chg. over the last day: +1.24
  • Day's range: 110.810 – 111.378
  • 52 wk range: 99.08 – 123.69

Yesterday, aggressive purchases were observed on USD/JPY. The growth of quotations exceeded 1.2%. Today, the yen continued to lose ground against the US dollar. Bank of Japan, as expected, left the interest rate at the previous level of -0.10% and intends to adhere to a soft monetary policy. The currency formed a local resistance of 111.350. The 110.800 mark is already a "mirror" support.

We recommend paying attention to the news background on the US economy.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 110.800, 110.250
  • Resistance levels: 111.350

We believe that the growth of the USD/JPY currency pair may continue. If the price fixes above the local resistance of 111.350, we recommend considering buying. The immediate goal for profit taking is 111.700.

Alternative option. If the price overcomes the level of support at 110.800, a corrective movement may develop to the level of 110.500-110.250.

by JustForex, 2017.06.16

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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.