The Analytical Overview of the Main Currency Pairs on 2017.10.27

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18123
  • Open: 1.16529
  • % chg. over the last day: -1.48
  • Day's range: 1.16198 – 1.16573
  • 52 wk range: 1.0341 – 1.2069

The single currency fell after the decision of the ECB. The regulator, as expected, left interest rates unchanged. The central bank said that since January, the monthly volume of asset purchaseы will be reduced from 60 billion euros to 30 billion euros. The ECB remains concerned about the low level of inflation. The program was extended until September 2018. These events triggered aggressive sales of EUR/USD. The euro weakened against the US dollar by more than 175 points. At the moment, the key trading range is 1.16200-1.16650. We are waiting for statistics from the USA.

At 15:30 (GMT+3:00) a report on the US GDP will be published.

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, but above 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 also gives a sell signal for EUR/USD.

Trading recommendations
  • Support levels: 1.16200, 1.16000
  • Resistance levels: 1.16550, 1.17000, 1.17350

If the price fixes below the local support of 1.16200, we expect a further drop in the EUR/USD quotes. The movement is tending to 1.16000-1.15750.

Alternative option. We do not exclude a technical correction. If the price fixes above the local resistance of 1.16550, it is necessary to consider buying EUR/USD. The movement is tending to the round level of 1.17000.

When tracking positions, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32612
  • Open: 1.31578
  • % chg. over the last day: -1.01
  • Day's range: 1.30912 – 1.31620
  • 52 wk range: 1.1450 – 1.3618

At the moment there are aggressive sales on GBP/USD. During yesterday's trading, the pound weakened against the US currency by more than 100 points. Today, the US dollar rally continued. At the moment, the key trading range is 1.30900-1.31200. Demand for the US dollar remains at a high level. The trading instrument has the potential to further reduce.

We recommend paying attention to economic reports from the USA.

GBP/USD

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

The MACD histogram is in the negative zone and below the signal line, which indicates the bearish sentiment on 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: 1.30900, 1.30500
  • Resistance levels: 1.31200, 1.31600, 1.32250

If the statistics from the US is optimistic, we expect a further drop in GBP/USD. The target movement level is 1.30500-1.30250.

An alternative may be the growth of the GBP/USD currency pair to the level of 1.31500-1.31600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27930
  • Open: 1.28456
  • % chg. over the last day: +0.42
  • Day's range: 1.28435 – 1.28863
  • 52 wk range: 1.2059 – 1.3795

The Canadian dollar continues to lose ground against the US dollar. Yesterday, the growth of USD/CAD quotations exceeded 60 points. At the moment, the price is testing the local resistance of 1.28850. The nearest support is at the level of 1.28450. Nevertheless, in the near future, we do not rule out a technical correction. We recommend opening positions from the key levels. Today, the report on the US GDP is in the focus of attention.

The news background on Canada's economy is calm.

USD/CAD

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

The MACD histogram is in the positive zone and above the signal line, which signals the purchase of USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also indicates the growth of the USD/CAD currency pair.

Trading recommendations
  • Support levels: 1.28450, 1.28150, 1.27800
  • Resistance levels: 1.28850, 1.29500

If the statistics from the US is optimistic, we expect further growth of the USD/CAD currency pair. The movement is tending to the level of 1.29500.

An alternative may be the correction of the USD/CAD quotes. The target movement level is 1.28150-1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.735
  • Open: 113.965
  • % chg. over the last day: +0.33
  • Day's range: 113.962 – 114.320
  • 52 wk range: 99.53 – 118.67

Yesterday the bullish sentiment prevailed on USD/JPY. At the moment, the trading instrument is consolidating. The price is testing the local resistance of 114.200. The nearest support is at 113.800. Participants of the financial markets expect additional drivers. Today, the statistics on the US GDP is in the focus of attention. We recommend opening positions from the key levels.

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

USD/JPY

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

The MACD histogram is located in the positive zone and continues to rise, which signals the bullish sentiment on USD/JPY.

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: 113.800, 113.450, 113.100
  • Resistance levels: 114.200, 114.500

If economic reports from the United States are positive, we recommend considering buying USD/JPY. The movement is tending to 114.500-114.750.

An alternative may be to the USD/JPY currency pair reduction to the level of 113.450-113.100.

by JustForex, 2017.10.27

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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.