The Analytical Overview of the Main Currency Pairs on 2017.07.25

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16628
  • Open: 1.16425
  • % chg. over the last day: -0.36
  • Day's range: 1.16301 – 1.16693
  • 52 wk range: 1.0366 – 1.1684

Yesterday, there was a corrective movement on the EUR/USD currency pair against the background of weak data on business activity in the Eurozone. The key trading range is 1.16200-1.16800. The technical pattern is ambiguous at the moment. Investors are expecting a meeting of the Fed, which will be held on Wednesday, July 26. We recommend opening positions from the key levels.

Economic reports on 2017.07.25:

  • - The IFO business climate index in Germany at 11:00 (GMT+3:00);
  • - The consumer confidence index in the US at 17:00 (GMT+3:00).
EUR/USD

The price is testing 50 MA, which acts as a fairly strong dynamic support.

The MACD histogram has begun to rise and has gone to the positive zone, then indicates the power of buyers.

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

Trading recommendations
  • Support levels: 1.16200, 1.15800
  • Resistance levels: 1.16800

If the price fixes above 1.16800, it is necessary to consider buying EUR/USD. The movement is tending potentially to 1.17000-1.17250.

Alternative option. If the EUR/USD quotes overcome the local support level of 1.16200, a correction may develop in the trading instrument. The immediate goal for profit-taking is 1.15800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29859
  • Open: 1.30281
  • % chg. over the last day: +0.16
  • Day's range: 1.30138 – 1.30417
  • 52 wk range: 1.1986 – 1.5020

The technical pattern on the GBP/USD is still ambiguous. At the moment, the currency is consolidating in a rather narrow range of 1.30100-1.30500. Participants of the financial markets are expecting preliminary data on the UK GDP, which will appear on Wednesday, July 26. Today it is necessary to open positions from the key levels.

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

GBP/USD

Indicators do not send accurate signals. 50 MA has crossed 200 MA.

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment on GBP/USD.

Trading recommendations
  • Support levels: 1.30100, 1.29600
  • Resistance levels: 1.30500, 1.31000

If the price fixes above the 1.30500 mark, we recommend you to look for entry points to the market in order to open long positions. The target movement level is 1.31000.

Alternative option. If the GBP/USD rate falls below the support level of 1.30100, sales should be considered. The movement is tending potentially to 1.29600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25323
  • Open: 1.25070
  • % chg. over the last day: -0.22
  • Day's range: 1.24855 – 1.25258
  • 52 wk range: 1.2520 – 1.3795

The Canadian dollar continues to strengthen against the US currency. At the moment USD/CAD is testing the round level of 1.25000. Support for the currency of Canada is provided by the oil quotations recouping. The key resistance is the mark of 1.25900.

There are no important economic reports from Canada today.

USD/CAD

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA.

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates a correction of the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.25000
  • Resistance levels: 1.25900, 1.26650

If the statistics from the US is positive, a correction may develop on the USD/CAD currency pair. The movement is tending potentially to 1.25500-1.25900.

An alternative may be a continuation of a downward trend. The target movement level is 1.24500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.105
  • Open: 111.089
  • % chg. over the last day: +0.26
  • Day's range: 110.822 – 111.351
  • 52 wk range: 99.53 – 118.67

Yesterday the USD/JPY currency pair retained the local support at 110.700, which triggered the bullish sentiment in the second half of the day. In the near future, we do not exclude a further correction of the yen. At the moment, the currency is testing the local resistance at 111.350. We recommend paying attention to the US government bonds yield.

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

USD/JPY

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

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a USD/JPY correction.

Trading recommendations
  • Support levels: 110.700
  • Resistance levels: 111.350, 112.000

If the price fixes above the local resistance of 111.350, we recommend considering buying USD/JPY. The movement is tending potentially to 111.800-112.000.

Alternative option. If the US statistics turn out to be weak, the USD/JPY quotes may again test the support level of 110.700.

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.