In the Asian trading session, aggressive purchases were observed on EUR/USD. The euro added more than 60 points. The currency formed a local resistance of 1.15350. The 1.14750 mark is already a "mirror" support. The US dollar remains under pressure. Nevertheless, we do not exclude a technical correction. At the moment, we recommend opening positions from the key levels.
The news background is quite calm:
The price is above 50 MA and 200 MA, which indicates the power of buyers.
The MACD histogram has fixed in the positive zone and above the signal line, which signals a bullish sentiment on EUR/USD.
Stochastic Oscillator left the overbought zone, the %K line is below the %D line, which sends a signal to sell EUR/USD.
If the price fixes above 1.15350, further growth of the EUR/USD currency pair is possible. The movement is tending potentially to 1.15750.
Alternative option. If the EUR/USD quotes overcome local support of 1.15150, a correction may develop. The immediate goal for profit-taking is 1.14900-1.14750.
During yesterday's trading, there was a corrective movement on GBP/USD. The pound lost more than 40 points in price and reached the local support of 1.30550. At the moment, purchases predominate in the trading instrument. The price is testing the offer zone of 1.31000-1.31100. We are waiting for important statistics on the UK economy.
At 11:30 (GMT+3:00), the consumer price index will be published.
We also recommend you to pay attention to the speech of the Chairman of the Bank of England, Carney, at 16:30 (GMT+3:00).
The GBP/USD quotes have fixed above 50 MA and 200 MA, which signals the power of buyers.
The MACD histogram is located in the positive area and continues to rise, indicating further growth of the GBP/USD currency pair.
Stochastic Oscillator has begun to exit the overbought zone, the %K line is below the %D line, which gives a signal to sell GBP/USD.
If the statistics from the UK is positive, further growth of the GBP/USD quotes is possible. The target level of movement is 1.31500-1.31750.
An alternative may be the correction on GBP/USD to 1.30550-1.30250.
At the moment, the USD/CAD currency pair is in the process of consolidation. The following key support and resistance levels can be identified: 1.26300 and 1.27000, respectively. The price and MACD histogram divergence continued. Correction is possible in the near future. Positions must be opened from the key levels.
The publication of important economic reports from Canada is not planned today.
The price is close to 50 MA, which acts quite a strong dynamic resistance.
The MACD histogram has fixed in the negative zone and below the signal line, which indicates the power of the sellers.
Stochastic Oscillator has begun to move out of the oversold zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.
If the price fixes above the local resistance of 1.26700, a correction movement may develop on the USD/CAD currency pair. The movement is tending potentially to 1.27250-1.27600.
Alternative option. If the price overcomes the 1.26300 mark, we recommend considering selling USD/CAD. The target movement level is 1.26000-1.25750.
The bearish sentiment is still prevailing on USD/JPY. In the Asian trading session, the currency of the "safe haven" added more than 50 points. The trading instrument found support at the round level of 112.000. The 112.400 mark is already a "mirror" resistance. The technical pattern indicates a further drop in USD/JPY.
There is no important news on the economy of Japan today.
The price is below 50 MA and 200 MA, which indicates the power of the sellers.
The MACD histogram is located in the negative zone and below the signal line, which signals a bearish sentiment on USD/JPY.
Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.
We expect a further decline of the USD/JPY currency pair. If the price fixes below the round level of 112.000, we recommend looking for entry points in the market to open short positions. The movement is tending to 111.500.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.