The Analytical Overview of the Main Currency Pairs on 2017.06.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11334
  • Open: 1.11675
  • % chg. over the last day: +0.28
  • Day's range: 1.11601 – 1.11780
  • 52 wk range: 1.0366 – 1.1616

Yesterday the EUR/USD currency pair moved away from local extremes. At the moment, the technical pattern is ambiguous. The key trading range is 1.11600-1.11900. Today, the publication of important economic reports from the EU is not planned. It is better to open positions from key levels. We also recommend paying attention to the US government bonds yield.

News background on the US economy:

  • The number of initial applications for unemployment benefits – 15:30 (GMT + 3: 00);
  • Speech of the FOMC member Powell – 17:00 (GMT + 3: 00).
EUR/USD

Indicators do not send accurate signals. The price is between 50 MA and 200 MA, which are a strong dynamic support and resistance levels.

The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator has left the overbought zone, the %K line is below the %D line, indicating a “bearish” sentiment on EUR/USD.

Trading recommendations
  • Support levels: 1.11600, 1.11300
  • Resistance levels: 1.11900, 1.12250

If the price consolidates below the local support level of 1.11600, we recommend looking for entry points to the market to open short positions. The target movement level is 1.11300-1.11000.

Alternative option. If the EUR/USD quotes overcome the level of 1.11900, a correction may develop. The movement is tending potentially to1.12250-1.12500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25987
  • Open: 1.26690
  • % chg. over the last day: +0.35
  • Day's range: 1.26569 – 1.26860
  • 52 wk range: 1.1986 – 1.5020

Yesterday, a correction was observed on GBP/USD. The currency has reached a round level of 1.27000. This movement was caused by technical factors. The trading during the Asian session was calm. The following key support and resistance levels can be identified: 1.26400 and 1.27000, respectively. The market is waiting for additional drivers.

The news background on the economy of Britain is calm today. At 13:00 (GMT+3:00) the data on the index of industrial orders will be released.

GBP/USD

The signals of the indicators are ambiguous. The price has fixed between 50 MA and 200 MA.

The MACD histogram is near 0 mark.

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

Trading recommendations
  • Support levels: 1.26400, 1.26000
  • Resistance levels: 1.27000, 1.27550

Today, it is better to open positions from key levels.

If the price consolidates below the local support level of 1.26400, we recommend considering sales of GBP/USD. The immediate goal for profit taking is a round level of 1.26000.

Alternative option. If the GBP/USD quotes overcome the 1.27000 mark, you need to look for entry points to open long positions. The movement is tending potentially to1.27550.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32639
  • Open: 1.33335
  • % chg. over the last day: +0.46
  • Day's range: 1.33152 – 1.33379
  • 52 wk range: 1.2458 – 1.4692

Yesterday, the bullish sentiment prevailed on USD/CAD. The growth of quotes exceeded 70 points. The currency has overcome and consolidated above the round level of 1.33000. The nearest resistance is the mark of 1.33500. At the moment, the technical pattern indicates further correction. Nevertheless, it is necessary to pay attention to statistics from Canada.

At 15:30 (GMT+3:00) there will be data on retail sales in Canada.

USD/CAD

50 MA has fixed above 200 MA, indicating 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 in the neutral zone, the %K line is above the %D line, which also signals the USD/CAD growth.

Trading recommendations
  • Support levels: 1.33000, 1.32500, 1.32000
  • Resistance levels: 1.33500, 1.34000

If economic reports from Canada are weak, the growth of the USD/CAD quotes may continue. The movement is tending potentially to the round level of 1.34000.

An alternative may be a downward trend on the USD/CAD currency pair to the level of 1.32500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.425
  • Open: 111.337
  • % chg. over the last day: -0.10
  • Day's range: 110.947 – 111.435
  • 52 wk range: 99.08 – 123.69

Yesterday's trading on USD/JPY was very active. At the same time, an unidirectional trend was not observed. Today, during the Asian session sales prevailed. At the moment, the currency is testing a round level of 111.000. Further correction of USD/JPY is possible. We recommend opening positions from key marks.

There are no important economic reports from Japan today.

USD/JPY

The price is between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram has fixed in the negative zone and below the signal line, indicating a "bearish" sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 111.000, 110.700, 110.350
  • Resistance levels: 111.400, 111.750

If the price consolidates below the round level of 111.000, the USD/JPY correction may continue. The movement is tending potentially to 110.700-110.350. When tracking a position, one should use a trailing stop.

Alternative option. If the price overcomes the local resistance of 111.400, we recommend considering buying USD/JPY. The target movement level is 111.750-112.000.

by JustForex, 2017.06.22

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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.