The Analytical Overview of the Main Currency Pairs on 2017.07.17

The EUR/USD vurrency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13996
  • Open: 1.14725
  • % chg. over the last day: +0.61
  • Day's range: 1.14416 – 1.14748
  • 52 wk range: 1.0366 – 1.1616

Last week, the US dollar weakened against the basket of world currencies. On Friday, weak reports on inflation and retail sales were published. The financial markets participants doubt the implementation of the FRS's plans. The probability of tightening monetary policy in December 2017 decreased to 43.1%. Currently, there is a corrective movement on EUR/USD. The key trading range is 1.14250-1.14750.

News background on 2017.07.17:

  • Today, the report on inflation in the euro zone is in the focus of attention - 12:00 (GMT+3:00).
EUR/USD

The signals of the indicators are different. The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to decline and is below the signal line, which signals a correction of the EUR/USD quotations.

Stochastic Oscillator has fixed near the oversold zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.14250, 1.13800, 1.13350
  • Resistance levels: 1.14750

If the statistics on inflation in the euro area is positive, further growth of the EUR/USD currency pair is possible. The movement is tending potentially to the round level of 1.15000.

Alternatively, EUR/USD may drop to 1.14000-1.13800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29360
  • Open: 1.30932
  • % chg. over the last day: +1.21
  • Day's range: 1.30710 – 1.31134
  • 52 wk range: 1.1986 – 1.5020

On Friday, aggressive purchases were on GBP/USD. The pound rose against the US dollar by more than 175 points. The currency has reached a round level of 1.31000. Local support is the mark of 1.30550. In the near future, we do not exclude a technical correction. Positions must be opened from the key levels.

The news background on the UK economy is calm today.

GBP/USD

Indicators do not send accurate signals. The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to decline and is located below the signal line, which signals a corrective movement on GBP/USD.

Stochastic Oscillator has fixed in the neutral zone, the %K line crossed the %D line. At the moment there are no signals.

Trading recommendations
  • Support levels: 1.30550, 1.30000
  • Resistance levels: 1.31100

If the price fixes above the local resistance of 1.31100, the upward trend on GBP/USD may continue. The closest target for profit taking is the 1.31500 mark.

Alternative option. If the GBP/USD quotes overcome the local support of 1.30550, it is necessary to consider sales. The movement is tending potentially to the round level of 1.30000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27200
  • Open: 1.26463
  • % chg. over the last day: -0.62
  • Day's range: 1.26270 – 1.26686
  • 52 wk range: 1.2458 – 1.4692

Last week, the Canadian dollar continued to strengthen against the US currency. The fall in the USD/CAD quotations exceeded 200 points. It should be recalled that the Bank of Canada increased the key interest rate by 25 basis points to 0.75%. The regulator also increased the country's GDP growth forecast. At the same time, in the near future, we do not exclude a corrective movement. The USD/CAD currency pair formed a rather strong reversal formation of technical analysis - price and MACD histogram divergence. We recommend opening positions from key levels.

There is no important statistics on Canada's economy today.

USD/CAD

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

The MACD histogram has begun to rise and fixed above the signal line, which indicates the correction on the USD/CAD currency pair.

Stochastic Oscillator has begun to exit the overbought zone, the %K line is below the %D line, which signals sales of USD/CAD.

Trading recommendations
  • Support levels: 1.26300
  • Resistance levels: 1.26800, 1.27600

If the price fixes above the local resistance of 1.26800, a correction movement may develop on the USD/CAD currency pair. The target level of movement is 1.27250-1.27600.

Alternative option. If the price overcomes the mark of 1.26300, we recommend looking for entry points to the market for opening short positions. The movement is tending potentially to 1.26000-1.25750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.254
  • Open: 112.455
  • % chg. over the last day: -0.66
  • Day's range: 112.049 – 112.771
  • 52 wk range: 99.08 – 123.69

During the Friday trading, the bearish sentiment prevailed on USD/JPY. The yen added more than 80 points. The currency formed a local support of 112.400. The 112.900 mark is already a "mirror" resistance. The technical pattern indicates a continuation of the downward trend. The attention is focused this week on the meeting of the Bank of Japan.

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

USD/JPY

Indicators point to the power of sellers. The price is below 50 MA and 200 MA.

The MACD histogram is located in the negative area and continues to decline, which signals a further drop in the USD/JPY quotes.

Stochastic Oscillator has fixed 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: 112.400, 112.000
  • Resistance levels: 112.900, 113.500

We believe that bearish sentiments on the USD/JPY currency pair may prevail in further. If the price fixes below the local support of 112.400, we recommend considering sales. The immediate goal for fixing profits is a round level of 112.000.

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.