The Analytical Overview of the Main Currency Pairs on 2018.02.23

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22830
  • Open: 1.23288
  • % chg. over the last day: +0.34
  • Day's range: 1.22798 – 1.23372
  • 52 wk range: 1.0492 – 1.2537

Yesterday, the US dollar moved away from the local extremes. The growth of the EUR/USD quotes exceeded 50 points. This movement was mostly caused by technical factors. Demand for the American currency remains. The euro is under pressure due to the weak economic reports from Germany. At the moment, the key support and resistance levels are: 1.22900 and 1.23400, respectively. We recommend you to open positions from these marks.

At 12:00 (GMT+2:00), the consumer price index of the Eurozone will be published.

EUR/USD

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

The MACD histogram is near 0 mark.

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

Trading recommendations
  • Support levels: 1.22900, 1.22450
  • Resistance levels: 1.23400, 1.24000

If the price fixes below the support level of 1.22900, the EUR/USD quotes are expected to fall. The movement is tending potentially to the demand zone of 1.22150-1.22450.

Alternative option. If the price fixes above 1.23400, it is necessary to look for entry points to the market to open long positions. The movement is tending potentially to the round level of 1.24000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39167
  • Open: 1.39514
  • % chg. over the last day: +0.24
  • Day's range: 1.39240 – 1.39744
  • 52 wk range: 1.2106 – 1.4345

Yesterday, the Office for National Statistics published a weak report on GDP. In the fourth quarter of 2017, the country's economic growth slowed from 1.5% to 1.4% (year on year). At the moment, the technical pattern is ambiguous on the GBP/USD currency pair. The trading instrument is consolidating. The key range is 1.39250-1.39800. We recommend you to open positions from these marks.

The news feed on the UK economy is calm today.

GBP/USD

Indicators do not send accurate signals. The price crossed 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 GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the growth of the GBP/USD quotes.

Trading recommendations
  • Support levels: 1.39250, 1.38500
  • Resistance levels: 1.39800, 1.40500

If the price fixes below the support level of 1.39250, it is necessary to consider sales of GBP/USD. The movement is tending potentially to 1.38750-1.38500.

Alternative option. If the price fixes above 1.39800, the GBP/USD currency pair is expected to grow. The movement is tending potentially to 1.40250-1.40500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27013
  • Open: 1.27039
  • % chg. over the last day: +0.09
  • Day's range: 1.26970 – 1.27256
  • 52 wk range: 1.2059 – 1.3795

The technical pattern is ambiguous on the USD/CAD currency pair. The trading instrument is in a sideways trend. The key support and resistance levels are: 1.27000 and 1.27350. The Canadian dollar is under pressure due to the weak report on retail sales. We recommend you to open positions from the key levels.

At 15:30 (GMT+2:00), the basic consumer price index of Canada will be published.

USD/CAD

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

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

Trading recommendations
  • Support levels: 1.27000, 1.26600, 1.26250
  • Resistance levels: 1.27350, 1.28000

If the price fixes above the resistance level of 1.27350, further growth of the USD/CAD currency pair is expected. The movement is tending potentially to 1.27750-1.28000.

An alternative may be the correction of the USD/CAD quotes to the level of 1.26600-1.26250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.762
  • Open: 106.746
  • % chg. over the last day: -0.87
  • Day's range: 106.654 – 107.133
  • 52 wk range: 107.33 – 115.51

Yesterday, there were aggressive sales on the USD/JPY currency pair. The yen added more than 100 points. At the moment, the trading instrument is consolidating. The USD/JPY quotes are testing local support and resistance levels: 106.600 and 107.100, respectively. Investors expect additional drivers. We recommend you to pay attention to the dynamics of the US government bonds. Positions must be opened from the key levels.

During the Asian trading session, positive data on inflation in Japan were published.

USD/JPY

The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

The MACD histogram is located in the negative zone and continues to decline, which indicates a fall in the USD/JPY quotes.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.

Trading recommendations
  • Support levels: 106.600, 106.150
  • Resistance levels: 107.100, 107.500

If the price fixes below the support level of 106.600, the USD/JPY quotes are expected to fall. The movement is tending potentially to 106.150-105.750.

Alternative option. If the price fixes above the resistance level of 107.100, it is necessary to consider purchases of USD/JPY. The target movement level is 107.500-107.850.

by JustForex, 2018.02.23

We recommend you to get acquainted with the daily overview of the news feed.

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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