The Analytical Overview of the Main Currency Pairs on 2017.07.10

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14213
  • Open: 1.13967
  • % chg. over the last day: -0.19
  • Day's range: 1.13923 – 1.14099
  • 52 wk range: 1.0366 – 1.1616

On Friday, the euro moved away from local highs. The US Bureau of Labor Statistics published a fairly upbeat report on the labor market. In June, 222,000 jobs were created in the non-agricultural sector of the country, which is more than the forecasted value of 179,000. The average hourly wage growth was 0.2% compared to the previous value of 0.1%. The unemployment rate slightly increased and amounted to 4.4%. At the same time, the share of the economically active population increased to 62.8%. The key trading range is still 1.13750-1.14250. At the moment, positions need to be opened from the key levels.

The news background is calm today.

EUR/USD

Indicators do not send accurate signals. The price crossed 50 MA and 200 MA.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.13750, 1.13150
  • Resistance levels: 1.14250

If the price fixes below the local support 1.13750, we recommend considering sales. The movement is tending potentially to 1.13150.

Alternative option. If the EUR/USD quotes overcome the 1.14250 mark, you need to look for entry points to the market in order to open long positions. The target movement level is 1.14750.

When tracking the position, we recommend using a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29663
  • Open: 1.28745
  • % chg. over the last day: -0.61
  • Day's range: 1.28591 – 1.29089
  • 52 wk range: 1.1986 – 1.5020

Last week, the pound finished trading in the negative zone. This is due to the publication of weak reports on business activity in the UK. On Friday, the drop in the GBP/USD quotations exceeded 80 points. In May, the output in the manufacturing sector fell by 0.2%. Market expectations were at +0.5%. At the moment, the price is testing the "mirror" resistance of 1.29000. The technical pattern indicates a further drop in GBP/USD.

The news background on the UK economy is calm today.

GBP/USD

Indicators point to the power of sellers. The price is below 50 MA and 200 MA.

The MACD histogram is located in the negative zone and continues to decline, which sends a signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.28300
  • Resistance levels: 1.29000, 1.29750, 1.30250

We believe that the downward trend in GBP/USD may continue. If the price fixes below the level of 1.28750, we recommend you to look for entry points to the market in order to open short positions. The immediate goal for profit-taking is 1.28300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29724
  • Open: 1.28759
  • % chg. over the last day: -0.79
  • Day's range: 1.28709 – 1.29018
  • 52 wk range: 1.2458 – 1.4692

Over the last two weeks, the Canadian dollar has appreciated significantly against the US dollar. On Friday, aggressive sales were observed on USD/CAD. The Canadian currency got support because of the release of an upbeat report on the labor market. In the current trading week, the attention of financial market participants will be directed to the meeting of the Bank of Canada, which will be held on July 12.

Today, publication of important statistics on the economy of Canada is not planned.

USD/CAD

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

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

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: 1.28500
  • Resistance levels: 1.29250, 1.29900

If the price fixes below 1.28750, the downward trend in USD/CAD may continue. The target movement level is 1.28250.

Alternative option. In the near future, we do not exclude a technical correction. If the USD/CAD quotes overcome the local resistance of 1.29250, we recommend considering purchases. The movement is tending potentially to 1.29900.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.159
  • Open: 113.887
  • % chg. over the last day: +0.59
  • Day's range: 113.852 – 114.306
  • 52 wk range: 99.08 – 123.69

On the USD/JPY currency pair, the bullish sentiment still prevails. During Friday trading, the growth of quotations exceeded 0.50%. The currency formed a local resistance of 114.250. The 113.600 mark is already a "mirror" support. Demand for the US dollar remains at a fairly high level.

In the Asian trading session, a weak statistics from Japan was published, which puts pressure on the yen.

USD/JPY

The USD/JPY quotes have fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located 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 below the %D line, which signals a possible correction on USD/JPY.

Trading recommendations
  • Support levels: 113.900, 113.600
  • Resistance levels: 114.250

If the price fixes above the local resistance of 114.250, we recommend considering buying USD/JPY. The movement is tending potentially to 114.500-114.750.

Alternative option. If the USD/JPY quotes overcome the level of 113.900, a correction may develop in the trading instrument. The immediate goal for profit-taking is 113.600-113.500.

by JustForex, 2017.07.10

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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.

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