The Analytical Overview of the Main Currency Pairs on 2017.07.19

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14782
  • Open: 1.15531
  • % chg. over the last day: +0.60
  • Day's range: 1.15253 – 1.15560
  • 52 wk range: 1.0366 – 1.1616

Yesterday, aggressive purchases were observed on EUR/USD. The euro added more than 80 points. Some representatives of the Republican Party refused to support the bill to replace the Obamacare healthcare system. These events put pressure on the US dollar. The currency found resistance at 1.15800. In the Asian trading session, there was a correction. The closest support is the mark of 1.15150. Today, the major currency pairs may show mixed results. Tomorrow, the Bank of Japan and the ECB will decide on further monetary policy. We expect economic reports from the United States.

At 15:30 (GMT+3:00) a number of statistics on the real estate market in the United States will be released.

EUR/USD

At the moment, the signals of the indicators are ambiguous. The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to decline and fixed below the signal line, which signals a correction on EUR/USD.

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

Trading recommendations
  • Support levels: 1.15150, 1.14750
  • Resistance levels: 1.15800

If the statistics from the US turns out to be weak, the bullish sentiment may dominate on the EUR/USD currency pair. The movement is tending potentially to the local resistance of 1.15800.

An alternative may be a further correction of the EUR/USD quotations to the level of 1.15000-1.14750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30509
  • Open: 1.30390
  • % chg. over the last day: -0.14
  • Day's range: 1.30228 – 1.30490
  • 52 wk range: 1.1986 – 1.5020

The pound remains under pressure amid the inflation slowdown in the country. The National Statistical Office of Great Britain reported that in June the consumer price index (in annual terms) was 2.6% compared to the previous value of 2.9%. This report caused a sharp drop in GBP/USD. At the moment, the key trading range is 1.30000-1.30550. The technical pattern indicates the continuation of the bearish sentiment.

Today, the news background on the UK economy is calm.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.30000, 1.29500
  • Resistance levels: 1.30550, 1.31100

We expect a further drop in GBP/USD. If the price fixes below the local support 1.30250, we recommend considering sales. The movement is tending potentially to 1.30000-1.29500. When tracking a position, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26970
  • Open: 1.26272
  • % chg. over the last day: -0.51
  • Day's range: 1.26198 – 1.26452
  • 52 wk range: 1.2458 – 1.4692

Yesterday, sales prevailed on USD/CAD. The Canadian dollar rose against the US dollar by more than 75 points. The currency found support at the round level of 1.26000. The nearest resistance is still 1.26700. Support for the Canadian dollar is provided by the recovery of the oil quotations. Nevertheless, positions should be opened from the key levels. In the near future, we do not exclude a correction.

At 15:30 (GMT+3:00) the data on sales in the manufacturing sector of Canada will be released.

USD/CAD

Indicators do not send accurate signals. The price is testing 50 MA, which at the moment is a fairly strong dynamic resistance.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.26000
  • Resistance levels: 1.26700, 1.27000, 1.27600

If the statistics on the real estate market in the US turns out to be positive, a correction may develop on the USD/CAD currency pair. The movement is tending potentially to the round level of 1.27000.

Alternatively, USD/CAD may fall to the level of 1.26000-1.25750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.609
  • Open: 112.050
  • % chg. over the last day: -0.58
  • Day's range 111.878 – 112.237
  • 52 wk range: 99.08 – 123.69

Yesterday, the yen's growth against the US dollar continued. The drop in the USD/JPY quotations exceeded 0.50%. The currency formed a local support at 111.800. The key resistance is 112.400. Demand for the yen is supported by a drop in the US government bonds yield.

The news background on the economy of Japan is calm today.

USD/JPY

The price is below 50 MA and 200 MA, which signals the power of the sellers.

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

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

Trading recommendations
  • Support levels: 111.800
  • Resistance levels: 112.400, 112.900

If the statistics from the US turns out to be weak, the downward trend in USD/JPY may continue. The target movement level is 111.500-111.250.

An alternative may be the growth of the USD/JPY quotations to the level of 112.400-112.750.

by JustForex, 2017.07.19

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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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