The Analytical Overview of the Main Currency Pairs on 2017.10.23

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18523
  • Open: 1.17666
  • % chg. over the last day: -0.57
  • Day's range: 1.17511 – 1.17775
  • 52 wk range: 1.0341 – 1.2069

On Friday, October 20, the bearish sentiment prevailed on the EUR/USD currency pair. The drop in quotations exceeded 0.5%. Positive economic reports, prospects of tax reform and growth of the US government bonds yield supported the US currency. At the moment EUR/USD is consolidating. The key trading range is 1.17450-1.17800. Demand for the US dollar remains at a high level.

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

EUR/USD

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

The MACD histogram is located in the negative zone and below the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the EUR/USD price drop.

Trading recommendations
  • Support levels: 1.17450, 1.17000
  • Resistance levels: 1.17800, 1.18250, 1.18550

We expect a further drop in EUR/USD. If the price fixes below 1.17450, we recommend looking for entry points to the market for opening short positions. The movement is tending to the round level 1.17000.

Alternative option. If the price fixes above 1.17800, it is necessary to consider buying EUR/USD. The target movement level is 1.18000-1.18250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31579
  • Open: 1.31860
  • % chg. over the last day: +0.24
  • Day's range: 1.31691 – 1.32269
  • 52 wk range: 1.1450 – 1.3618

At the moment, there is am an ambiguous technical pattern on the GBP/USD currency pair. Participants of the financial markets expect additional drivers. The trading instrument is in a sideways trend. The key support and resistance levels are 1.31850 and 1.32250 respectively. We recommend opening positions from these marks.

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

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

The MACD histogram is in the positive zone and above the signal line, which indicates a bullish sentiment on GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which sends a signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.31850, 1.31500, 1.31000
  • Resistance levels: 1.32250, 1.32650

If the price fixes below the local support of 1.31850, you need to look for entry points to the market to open short positions. The movement is tending to 1.31500-1.31250.

Alternative option. If the price fixes above 1.32250, we recommend considering buying GBP/USD. The target movement level is 1.32650.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24847
  • Open: 1.26201
  • % chg. over the last day: +1.12
  • Day's range: 1.26135 – 1.26405
  • 52 wk range: 1.2059 – 1.3795

On Friday there were aggressive purchases of USD/CAD. The Canadian dollar weakened against the US dollar by more than 150 points. This is due to the publication of weak economic reports on inflation and retail sales in Canada. The currency found resistance at 1.26400. Local support is the mark of 1.26100. In the near future, we do not rule out a technical correction.

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

USD/CAD

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

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

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

Trading recommendations
  • Support levels: 1.26100, 1.25750, 1.25000
  • Resistance levels: 1.26400, 1.27000

If the price fixes below the local support of 1.26100, we expect a technical correction of the USD/CAD currency pair. The movement is tending to the "mirror" support level of 1.25750.

Alternative option. If the price fixes above 1.26400, it is necessary to consider buying USD/CAD. The target movement level is 1.26750-1.27000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.577
  • Open: 113.872
  • % chg. over the last day: +0.86
  • Day's range: 113.623 – 114.098
  • 52 wk range: 99.53 – 118.67

On the USD/JPY currency pair, the bullish sentiment still prevails. Today the trading instrument opened with a gap up. The currency formed a local resistance of 114.100. The nearest support is at 113.550. The USD/JPY quotes have the potential for further growth. The ruling party won the parliamentary elections in Japan. The Bank of Japan will adhere to the stimulating of the monetary policy.

The publication of important economic reports is not planned.

USD/JPY

Indicators point to the power of buyers. The USD/JPY have fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone, 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 above the %D line, which also gives a signal to buy USD/JPY.

Trading recommendations
  • Support levels: 113.550, 113.100
  • Resistance levels: 113.850, 114.100

If the price fixes above the local resistance of 113.850, we recommend considering buying USD/JPY. The target movement level is 114.100-114.250.

Alternative option. If the price fixes below the level of 113.550, it is necessary to consider sales of USD/JPY. The movement is tending to 113.250-113.100.

by JustForex, 2017.10.23

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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.