The Analytical Overview of the Main Currency Pairs on 2017.05.03

Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.08982
  • Open: 1.09295
  • % chg. for the last day: +0.28
  • Day's range: 1.09151 - 1.09374
  • 52 wk range: 1.0366 - 1.1616

The single currency continues to be traded in a flat. The key trading range is 1.08650-1.09500. The market is waiting for additional drivers. Today's data on the euro area's GDP and the Fed meeting can significantly influence the further alignment of forces on the EUR/USD currency pair.

EUR/USD

The signals of the indicators vary. The MACD histogram is in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment on EUR/USD.

Today, the news background will be very eventful:
  • – the statistics on the German labor market (10:55 GMT+3:00);
  • – the data on GDP of the euro zone (12:00 GMT+3:00);
  • – the change in the number of employed in the non-agricultural sector of the US from ADP (15:15 GMT+3:00);
  • – the index of business activity in the non-manufacturing sector of the US from ISM (17:00 GMT+3:00);
  • – the FOMC statement (21:00 GMT+3:00);
  • – the decision on the Fed interest rate (21:00 GMT+3:00).
Trading recommendations
  • Support levels: 1.08650, 1.07650
  • Resistance levels: 1.09500

If the statistics from the EU are positive, an upward trend towards the level of 1.09750-1.10000 may develop on the EUR/USD currency pair. Alternatively, EUR/USD may drop to the support level of 1.08650.

Most experts believe that Fed will keep the interest rate at the same level. It is necessary to pay attention to the comments of the FOMC representatives.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28830
  • Open: 1.29386
  • % chg. for the last day: +0.40
  • Day's range: 1.28837 - 1.29476
  • 52 wk range: 1.1986 - 1.5020

Yesterday, the pound was supported by positive data on the index of business activity in the manufacturing sector of Britain. The growth of the 1.28830 quotations exceeded 50 points. At the moment, the currency is testing the "mirror" support of 1.29000. We are waiting for data on business activity in the construction sector of Great Britain.

GBP/USD

The MACD histogram has begun to decline and fixed below the signal line, which indicates a correction of GBP/USD.

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

At 11:30 (GMT+3:00) the data on the index of business activity in the construction sector in the UK will be released. Also, it is necessary to pay attention to the news line from the USA.

Trading recommendations
  • Support levels: 1.29000, 1.28500
  • Resistance levels: 1.29600

If the statistics from Britain is positive, further growth of the GBP/USD quotations is possible. The target level of movement is 1.29600-1.29750.

An alternative may be the correction of GBP/USD to the level of 1.28750-1.28500.

Forecast for the USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.36802
  • Open: 1.37107
  • % chg. for the last day: +0.20
  • Day's range: 1.37018 - 1.37397
  • 52 wk range: 1.2458 - 1.4692

The Canadian dollar continues to lose ground against the US currency. The pressure is caused by negative dynamics in the market of "black gold". Over the past week, the USD/CAD quotes growth exceeded 250 points. Yesterday, the currency found resistance at 1.37500. The mark 1.36650 acts as a "mirror" support.

USD/CAD

The MACD histogram has fixed in the positive area, 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 signals the USD/CAD correction.

The publication of important economic reports from Canada is not planned today.

Trading recommendations
  • Support levels: 1.36650, 1.35600
  • Resistance levels: 1.37500

If the statistics from the US is optimistic, the upward trend in USD/CAD may continue. The movement is tending potentially to the round level 1.38000.

An alternative may be a correction movement on USD/CAD to 1.36650-1.36500.

Forecast for the USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.813
  • Open: 111.991
  • % chg. for the last day: +0.13
  • Day's range: 111.947 - 112.183
  • 52 wk range: 99.08 - 123.69

Since the beginning of this week, USD/JPY has continued to grow. The currency overcame and consolidated above the key resistance of 111.700. The trading was calm during the Asian session. At the moment, USD/JPY is testing a local resistance of 112.250. The attention is focused on the Fed meeting.

USD/JPY

The MACD histogram has begun to rise and fixed above the signal line, which indicates further growth of USD/JPY.

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

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

Trading recommendations
  • Support levels: 111.700, 111.000
  • Resistance levels: 112.250

Today, we recommend opening positions from key levels. If the price consolidates above the local resistance of 112.250, it is necessary to consider buying USD/JPY. The movement is tending potentially to 112.750-113.000. When tracking the position, it is better to use a trailing stop.

An alternative option. If economic reports from the US turn out to be weak, a correction to the level of 111.700-111.500 may develop on the USD/JPY currency pair.

by JustForex, 2017.05.03

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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