The Analytical Overview of the Main Currency Pairs on 2017.09.18

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19178
  • Open: 1.19218
  • % chg. over the last day: -0.20
  • Day's range: 1.19149 – 1.19560
  • 52 wk range: 1.0341 – 1.2069

Last week, EUR/USD was in a sideways trend. Unidirectional trends were not observed. The technical pattern is still ambiguous. The market is waiting for additional drivers. This week, the attention is focused on the Fed's meeting. At the moment, the key trading range is 1.19000-1.19500. We recommend opening positions from these marks.

The news background on 2017.09.18:

At 12:00 (GMT+3:00), the consumer price index of the Eurozone will be published.

EUR/USD

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

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.19000, 1.18650
  • Resistance levels: 1.19500, 1.19850

If the price fixes below the round level 1.19000, we recommend considering sales of EUR/USD. The movement is tending to 1.18650-1.18400.

Alternative option. If the EUR/USD quotes overcome the level of 1.19500, it is necessary to search for entry points to the market to open long positions. The target level of movement is 1.19850-1.20000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33949
  • Open: 1.35597
  • % chg. over the last day: +1.46
  • Day's range: 1.35376 – 1.36187
  • 52 wk range: 1.1450 – 1.3447

Last week, the pound significantly strengthened against the US dollar. The growth of the GBP/USD quotations exceeded 400 points. The currency has reached a round level of 1.36000. The Bank of England said that in the near future the regulator could consider reducing the economic stimulus program. Demand for the pound has grown significantly. At the same time, we do not exclude a technical correction. At the moment, GBP/USD is consolidating in the range of 1.35250-1.36000.

At 18:00 (GMT+3:00) the head of the Bank of England Carney will give a speech.

GBP/USD

The signals of the indicators are different. The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to decline and is below the signal line, which signals a correction of GBP/USD.

Stochastic Oscillator is located 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: 1.35250, 1.34000
  • Resistance levels: 1.36000

If the price fixes below the local support 1.35250, a correction may develop on the GBP/USD currency pair. The target level of movement is 1.34500-1.34250.

Alternative option. If GBP/USD overcomes the round level of 1.36000, we recommend you to look for entry points to the market to open long positions. The movement is tending potentially to 1.36500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21601
  • Open: 1.21858
  • % chg. over the last day: +0.25
  • Day's range: 1.21704 – 1.22021
  • 52 wk range: 1.2414 – 1.3795

The technical pattern on the USD/CAD currency pair is still ambiguous. The trading instrument continues to consolidate. The growth of the oil quotes supports the demand for the Canadian dollar. The key support and resistance levels are 1.21600 and 1.22300, respectively. We recommend opening positions from these marks.

The news background on Canada's economy is fairly calm today. At 15:30 (GMT+3:00) there will be data on the volume of foreign investment in Canadian securities.

USD/CAD

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram has begun to rise and has moved to the positive zone, which signals the bullish sentiment.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also signals to buy USD/CAD.

Trading recommendations
  • Support levels: 1.21600, 1.21000
  • Resistance levels: 1.22300, 1.23000

If the price fixes above the resistance level of 1.22300, we recommend considering buying USD/CAD. The movement is tending to 1.22750-1.23000.

Alternative option. If the USD/CAD quotes overcome the level of 1.21600, it is necessary to look for entry points to the market for opening short positions. The target movement level is 1.21000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.235
  • Open: 111.070
  • % chg. over the last day: +0.55
  • Day's range: 110.997 – 111.432
  • 52 wk range: 99.53 – 118.67

On the USD/JPY currency pair, the bullish sentiment still prevails. Last week, the yen weakened against the US dollar by more than 300 points. At the moment, the price is testing the local resistance at 111.350. The USD/JPY quotes have the potential for further growth. We recommend paying attention to the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

Indicators signal the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone and continues to rise, which indicates the growth of the USD/JPY currency pair.

Stochastic Oscillator is close to the overbought zone, the %K line is above the %D line, which also signals the purchase of USD/JPY.

Trading recommendations
  • Support levels: 110.700, 110.000
  • Resistance levels: 111.350, 112.000

We expect further growth of USD/JPY. If the price fixes above the local resistance of 111.350, we recommend considering buying. The target level of movement is 111.750-112.000.

by JustForex, 2017.09.18

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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.