The Analytical Overview of the Main Currency Pairs on 2017.05.23

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11951
  • Open: 1.12366
  • % chg. for the last day: +0.31
  • Day's range: 1.12214 - 1.12549
  • 52 wk range: 1.0366 - 1.1616

At the moment, the technical pattern on EUR/USD is ambiguous. The key trading range is 1.11600-1.12600. Demand for the euro is supported by the positive data in the euro area. Yesterday, the representative of the Federal Reserve, Kaplan, said that the Central Bank could double interest rates this year. Angela Merkel said that the single currency is "too weak". We are waiting for statistics from the EU.

Economic calendar on 2017.05.23:
  • – the index of business activity in the manufacturing sector of Germany (10:30 GMT+3:00);
  • – the IFO business climate index (11:00 GMT+3:00);
  • – a number of statistics on business activity in the euro area (11:30 GMT+3:00);
  • – the data on business activity in the USA (16:45 GMT+3:00);
  • – sales of new homes in the US (17:00 GMT+3:00).
Прогноз по валютной паре EUR/USD

The price has fixed above 50 MA and 200 MA, which indicates the bullish sentiment on EUR/USD.

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 signals a correction on EUR/USD.

Trading recommendations
  • Support levels: 1.11600, 1.11000
  • Resistance levels: 1.12600

If the statistics from the EU are positive, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to the round level of 1.13000.

Alternative option. If the price fixes below the local support level of 1.12100, a correction to the 1.11600-1.11400 mark may develop on the EUR/USD currency pair.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29963
  • Open: 1.29994
  • % chg. for the last day: -0.07
  • Day's range: 1.29526 - 1.30049
  • 52 wk range: 1.1986 - 1.5020

Last trading sessions, the GBP/USD currency pair is in a sideway movement. At the moment, the following key support and resistance levels can be identified: 1.29700 and 1.30400, respectively. The pound remains under pressure due to the terrorist attack in the UK.

At 12:00 (GMT+3:00), representatives of the Bank of England will report on the economic situation in the country.

Прогноз по валютной паре GBP/USD

The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has begun to decline and moved to the negative zone, which indicates the bearish sentiment on GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.29700, 1.29000
  • Resistance levels: 1.30400

If the price consolidates above the round level of 1.30000, we recommend buying GBP/USD. The target level of movement is 1.30400-1.30500.

Alternative option. If the GBP/USD quotes overcome the support level of 1.29700, sales should be considered. The movement is tending potentially to 1.29250-1.29000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35129
  • Open: 1.35001
  • % chg. for the last day: -0.11
  • Day's range: 1.34693 - 1.35089
  • 52 wk range: 1.2458 - 1.4692

At the moment, the bearish sentiment prevails on the USD/CAD currency pair. Demand for the Canadian dollar is supported by a recovery in the price of "black gold." The key trading range is 1.34750-1.35350. This week, the attention is focused on the meeting of the Bank of Canada and the OPEC summit.

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

Прогноз по валютной паре USD/CAD

The USD/CAD quotes have fixed below 50 MA and 200 MA, which indicates the strength of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

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

Trading recommendations
  • Support levels: 1.34750
  • Resistance levels: 1.35350, 1.36000, 1.36650

We expect a downward trend in USD/CAD. If the price overcomes the support level of 1.34750, we recommend looking for entry points to the market for opening short positions. The target movement level is 1.34250-1.34000.

Alternative option. If the price consolidates above the local resistance 1.35350, a correction to the round level 1.36000 may develop on the USD/CAD currency pair.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.033
  • Open: 111.290
  • % chg. for the last day: +0.01
  • Day's range: 110.858 - 111.343
  • 52 wk range: 99.08 - 123.69

USD/JPY is in a sideway movement. The yen formed key levels: support - 110.900; resistance - 111.500. The market is waiting for additional drivers. This week the attention of financial market participants will be directed to the publication of the FOMC protocols.

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

Прогноз по валютной паре USD/JPY

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

The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 110.900, 110.250
  • Resistance levels: 111.500, 112.500

We still expect a downward trend in USD/JPY. If the price consolidates below the local support of 110.900, sales should be considered. The immediate goal for profit-taking is 110.250. Confirmations and entry points to the market are better to look on smaller timeframes.

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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.