The Analytical Overview of the Main Currency Pairs on 2017.07.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.15531
  • Open: 1.15139
  • % chg. over the last day: -0.23
  • Day's range: 1.14954 – 1.15329
  • 52 wk range: 1.0366 – 1.1616

Today, on the EUR/USD currency pair, one should expect high trading activity. The ECB meeting is in the focus of attention. Most experts believe that the Central Bank will keep interest rates at the same level. The latest statistics point to the recovery of the Eurozone economy. It is necessary to pay attention to the comments and rhetoric of the ECB head. The key trading range is 1.14750-1.15300.

The news background on 2017.07.20:
  • – ECB decision on the interest rate at 14:45 (GMT+3:00);
  • – The index of production activity from the Federal Reserve Bank of Philadelphia at 15:30 (GMT+3:00).
EUR/USD

At the moment, the indicators do not send accurate signals. The price is between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located in the negative zone and continues to decline, which indicates a bearish sentiment on EUR/USD.

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

Trading recommendations
  • Support levels: 1.14750, 1.14350
  • Resistance levels: 1.15300, 1.15800

Today we recommend reducing risks when opening positions.

If the ECB chairman's comments indicate that the monetary policy may change from adaptive to neutral one in the near future, the EUR/USD currency pair may reach a round level of 1.16000.

Alternatively, EUR/USD may drop to 1.14350-1.14000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30390
  • Open: 1.30164
  • % chg. over the last day: -0.08
  • Day's range: 1.29712 – 1.30324
  • 52 wk range: 1.1986 – 1.5020

In the near future, demand for the pound may rise against the backdrop of positive statistics from the UK. In June, retail sales in the country increased by 0.6%. Market expectations were at the level of 0.4%. At the moment, the key trading range is 1.29750-1.30300.

We recommend paying attention to the news line from the USA.

GBP/USD

The signals of the indicators are ambiguous. GBP/USD рas 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 a correction of GBP/USD.

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

Trading recommendations
  • Support levels: 1.29750, 1.29150
  • Resistance levels: 1.30300, 1.31100

If the price fixes above the local resistance of 1.30300, we recommend considering buying GBP/USD. The movement is tending potentially to 1.30750-1.31000.

Alternative option. If the price overcomes the 1.29750 mark, you need to look for entry points in the market to open short positions. The target movement level is 1.29150.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26272
  • Open: 1.26031
  • % chg. over the last day: -0.21
  • Day's range: 1.25914 – 1.26335
  • 52 wk range: 1.2458 – 1.4692

During the recent trading sessions, USD/CAD is consolidating after a significant drop last week. The key levels of support and resistance are still 1.26000 and 1.26700, respectively. At the moment, the technical pattern is ambiguous. Positions must be opened from the key levels.

The news background on Canada's economy is calm today.

USD/CAD

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

The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator has left the overbought zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations
  • Support levels: 1.26000
  • Resistance levels: 1.27000, 1.27600

If the statistics from the US turns out to be positive, a correction movement may develop on the USD/CAD currency pair. The target level for profit-taking is 1.27000.

An alternative may be the USD/CAD currency pair decreasing to the level of 1.25750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.050
  • Open: 111.934
  • % chg. over the last day: -0.18
  • Day's range: 111.766 – 112.386
  • 52 wk range: 99.08 – 123.69

In the Asian trading session, USD/JPY retained the key support of 111.800, which caused a correction. The currency has moved away from local lows. The Bank of Japan, as expected, left the interest rate at the previous level of -0.10%. The regulator revised the time frame for accelerating inflation to the target level (2% per annum) for March 2020. At the moment, the price is testing the resistance level of 112.400. In the near future, we do not exclude a further correction on USD/JPY.

It is necessary to pay attention to the news line from the USA.

USD/JPY

Indicators do not send accurate signals. The price is between 50 MA and 200 MA.

The MACD histogram has moved to the positive zone and continues to rise, indicating a bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 111.800
  • Resistance levels: 112.400, 112.900

If the price fixes above the resistance level of 112.400, the correction on USD/JPY may continue. The movement is tending potentially to 112.900.

Alternative option. If the statistics from the US turns out to be weak, it is necessary to consider selling USD/JPY. The movement is tending to 111.800-111.600.

by JustForex, 2017.07.20

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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.