The Analytical Overview of the Main Currency Pairs on 2018.08.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13460
  • Open: 1.13464
  • % chg. over the last day: -0.02
  • Day's range: 1.13423 – 1.13531
  • 52 wk range: 1.0571 – 1.2557

The euro began to recover. Conflict between the US and Turkey is in the focus of attention. At the moment, quotes are consolidating. Local support and resistance levels are 1.13500 and 1.14000, respectively. We recommend opening positions from these marks. In the near future, a technical correction is not ruled out.

The news feed on 16.08.2018:
  • - Statistics on the real estate market in the US at 15:30 (GMT+3:00);
  • - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals: the price is being traded between 50 MA and 200 MA.

The MACD histogram is located in the positive zone and above the signal line, which gives a strong signal to buy EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a decrease in quotes.

Trading recommendations
  • Support levels: 1.13500, 1.13000
  • Resistance levels: 1.14000, 1.14400, 1.14800

If the price fixes above the round level of 1.14000, the EUR/USD currency pair is expected to grow. The movement is tending to 1.14400-1.14600.

Alternative option. If the price fixes below 1.13500, it is necessary to look for entry points to the market to open short positions. The movement is tending to 1.13000-1.12800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27201
  • Open: 1.26958
  • % chg. over the last day: -0.25
  • Day's range: 1.26929 – 1.27000
  • 52 wk range: 1.2361 – 1.4345

The technical pattern on the GBP/USD currency pair is ambiguous. Yesterday, the consumer price index was published in the UK, which counted to 2.5% in July, as investors expected. At the moment, the key support and resistance levels are 1.26900 and 1.27400, respectively. The positions should be opened from these marks.

At 11:30 (GMT+3:00) a report on retail sales will be published in the UK.

GBP/USD

Indicators do not send accurate signals: the price is testing 50 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates a decrease in the GBP/USD quotes.

Trading recommendations
  • Support levels: 1.26900, 1.26500
  • Resistance levels: 1.27400, 1.27900, 1.28400

If the price fixes above the 1.27400 mark, corrective movement is expected. The target level for profit-taking is 1.27900-1.28400.

An alternative may be a decrease in the GBP/USD quotes to 1.26500-1.26300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30567
  • Open: 1.31391
  • % chg. over the last day: +0.70
  • Day's range: 1.31379 – 1.31312
  • 52 wk range: 1.2059 – 1.3795

Yesterday, purchases prevailed on the USD/CAD currency pair. The growth of quotes exceeded 100 points. At the moment, the technical pattern is ambiguous. Financial market participants expect additional drivers. Local support and resistance levels are 1.31100 and 1.31400, respectively. We recommend opening positions from these marks.

Today, the news feed on the economy of Canada is calm.

USD/CAD

The price has 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 USD/CAD.

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

Trading recommendations
  • Support levels: 1.31100, 1.30700, 1.30300
  • Resistance levels: 1.31400, 1.31700

If the price fixes below 1.31100, the USD/CAD quotes are expected to correct. The movement is tending to 1.30700-1.30500.

Alternative option. If the price fixes above the resistance of 1.31400, it is necessary to consider purchases of USD/CAD. The movement is tending to 1.31700-1.31900.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.112
  • Open: 110.703
  • % chg. over the last day: -0.53
  • Day`s range: 110.766 – 110.831
  • 52 wk range: 104.56 – 114.74

Yesterday, there were aggressive sales on the USD/JPY currency pair. The decrease in quotes exceeded 80 points. Demand for safe assets rises in periods of instability in financial markets. At the moment, quotes are testing local support and resistance levels 110.700 and 110.900, respectively. The positions should be opened from these marks.

During the Asian trading session, weak data on the trade balance of Japan were published.

USD/JPY

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, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates a decrease in USD/JPY.

Trading recommendations
  • Support levels: 110.700, 110.400, 110.150
  • Resistance levels: 110.900, 111.200, 111.500

If the price fixes above the resistance level of 110.900, the USD/JPY currency pair is expected to grow. The movement is tending to 111.200-111.500.

Alternative option. If the price fixes below the 110.700 mark, it is necessary to consider sales of USD/JPY. The movement is tending to 110.400-110.150.

by JustForex, 2018.08.16

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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