The Analytical Overview of the Main Currency Pairs on 2017.09.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18915
  • Open: 1.19401
  • % chg. over the last day: +0.44
  • Day’s range: 1.19362 – 1.19741
  • 52 wk range: 1.0341 – 1.2069

Yesterday, a correction movement was observed on the EUR/USD currency pair. The euro recouped most of the losses after a significant decline on Wednesday, September 20. At the same time, demand for the US dollar remains at a fairly high level. At the moment, the technical pattern on EUR/USD is ambiguous. The key trading range is 1.19450-1.19750. We recommend you to open positions from these levels.

The news background on 2017.09.22:

  • - Statistics on business activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00);
  • - Speech of the head of the ECB Draghi at 11:00 (GMT+3:00);
  • - A number of indexes of business activity in the US at 16:45 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals: 50 MA is below 200 MA.

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

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

Trading recommendations
  • Support levels: 1.19450, 1.19000
  • Resistance levels: 1.19750, 1.20150

If the price fixes below the local support 1.19450, we recommend considering sales of EUR/USD. The movement is tending potentially to 1.19000-1.18700.

Alternative option. If the EUR/USD quotes overcome the level of 1.19750, it is necessary to search for entry points to open long positions. The immediate goal for profit-taking is 1.20150.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34933
  • Open: 1.35642
  • % chg. over the last day: +0.63
  • Day’s range: 1.35628 – 1.35959
  • 52 wk range: 1.1450 – 1.3447

Yesterday, the bullish sentiment prevailed on GBP/USD. The growth of quotations exceeded 85 points. The currency once again approached the round level of 1.36000. At the moment, GBP/USD is consolidating in a rather narrow range. The local support is 1.35600. Positions must be opened from the key levels.

The news background on the UK economy is rather calm. At 13:00 (GMT+3:00) the index of industrial orders will be published.

GBP/USD

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

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

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: 1.35600, 1.35350, 1.34750
  • Resistance levels: 1.36000

If the price fixes below the local support 1.35600, we recommend considering sales of GBP/USD. The target movement level is 1.35000-1.34750.

Alternative option. If the price overcomes the round level of 1.36000, further growth of the GBP/USD quotations is possible. The movement is tending to 1.36500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23243
  • Open: 1.23235
  • % chg. over the last day: +0.03
  • Day’s range: 1.22770 – 1.23339
  • 52 wk range: 1.2059 – 1.3795

At the moment, bearish sentiment prevails on USD/CAD. The price overcame the mark of 1.23100, which is already a "mirror" resistance. The nearest support is at the level of 1.22500. Participants of the financial markets expect important economic reports from Canada.

News background on Canada's economy:

  • - Inflation report at 15:30 (GMT+3:00);
  • - Statistics on retail sales at 15:30 (GMT+3:00).
USD/CAD

The signals of the indicators are ambiguous. The price is between 50 MA and 200 MA, which are strong dynamic levels of support and 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 oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/CAD.

Trading recommendations
  • Support levels: 1.22500, 1.22000
  • Resistance levels: 1.23100, 1.23750

If the statistics from Canada turns out to be positive, the bearish sentiment may prevail on the USD/CAD currency pair. The movement is tending to the round level of 1.22000.

An alternative may be the growth of the USD/CAD currency pair to the resistance level of 1.23750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.209
  • Open: 112.457
  • % chg. over the last day: +0.20
  • Day’s range: 111.653 – 112.556
  • 52 wk range: 99.53 – 118.67

Yesterday the USD/JPY currency pair held the local resistance at 112.650, which caused a correction movement. At the moment, the price is testing the support level of 111.850. The technical pattern is ambiguous. Further correction of the USD/JPY quotes is not excluded. We recommend opening positions from key support and resistance levels.

There are no important economic reports from Japan today.

USD/JPY

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

The MACD histogram is in the negative zone and below the signal line, which indicates a bearish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 111.850, 111.250
  • Resistance levels: 112.650

If the price fixes below the support level of 111.850, we recommend looking for entry points to the market to open short positions. The immediate goal for profit-taking is 111.250.

Alternative option. If the price fixes above the local resistance of 112.650, it is necessary to consider buying USD/JPY. The movement is tending to 113.000-113.250.

by JustForex, 2017.09.22

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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.