The Analytical Overview of the Main Currency Pairs on 2017.08.23

The EUR/USDcurrency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18148
  • Open: 1.17610
  • % chg. over the last day: -0.46
  • Day's range: 1.17476 – 1.17660
  • 52 wk range: 1.0339 – 1.1909

Yesterday, the bearish sentiment prevailed on EUR/USD. The drop in quotations exceeded 50 points. The single currency was under pressure due to weak ZEW economic sentiment indexes in Germany and the Eurozone. At the moment, the key trading range is 1.17400-1.17850. The financial markets participants are waiting for the summit in Jackson Hole, which will be held on 24-26 August. Today, we recommend opening positions from the key levels.

News background on 2017.08.23:
  • – Indices of business activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
  • – Sales of new housing in the US at 17:00 (GMT+3:00).

We also recommend you to pay attention to the speeches of the ECB head Draghi and the FOMC representative Kaplan.

EUR/USD

The price is close to 50 MA and 200 MA, which at the moment are levels of a strong dynamic resistance.

The MACD histogram has fixed in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates the EUR/USD price drop.

Trading recommendations
  • Support levels: 1.17400, 1.17000
  • Resistance levels: 1.17850, 1.18250

If the price fixes below the local support of 1.17400, we recommend you to look for entry points to the market for opening short positions. The immediate goal for profit taking is the round level of 1.17000.

Alternative option. If the EUR/USD quotes overcome the level of 1.17850, it is necessary to consider purchases. The movement is tending to 1.18250-1.18450.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28979
  • Open: 1.28187
  • % chg. over the last day: -0.61
  • Day's range: 1.28069 – 1.28333
  • 52 wk range: 1.1450 – 1.3447

Yesterday, aggressive sales were observed on GBP/USD. The pound weakened against the US dollar by more than 80 points. The currency found support at 1.28100. The mark 1.28500 is already a "mirror" resistance. At the moment, the trading instrument is consolidating. We are waiting for statistics from the USA.

There are no important economic reports from the UK today.

GBP/USD

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.28100, 1.27500
  • Resistance levels: 1.28500, 1.29000

If the statistics from the US turns out to be positive, the downward trend in GBP/USD may continue. The movement is tending potentially to 1.27500.

An alternative may be the growth of GBP/USD to the level of 1.28500-1.28750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25575
  • Open: 1.25586
  • % chg. over the last day: +0.06
  • Day's range: 1.25573 – 1.25982
  • 52 wk range: 1.2414 – 1.3795

Yesterday, the Statistics Canada released a mixed report on retail sales. Since the beginning of this week, the USD/CAD currency pair is in a sideways trend. At the moment, the key levels of support and resistance are 1.25400 and 1.26000 respectively. We recommend opening positions from these marks.

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

USD/CAD

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

The MACD histogram is located in the positive zone and above the signal line, which indicates a bullish sentiment on USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives the signal to sell USD/CAD.

Trading recommendations
  • Support levels: 1.25400
  • Resistance levels: 1.26000, 1.26750

If economic reports from the US are positive, purchases may prevail on the currency pair. The target movement level is 1.26400-1.26600.

Alternatively, USD/CAD may fall to the level of 1.25400-1.25250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.967
  • Open: 109.555
  • % chg. over the last day: +0.69
  • Day's range: 109.325 – 109.824
  • 52 wk range: 99.53 – 118.67

During yesterday's trading, aggressive purchases were observed on USD/JPY. The yen weakened against the US dollar by more than 75 points. The currency found resistance at 109.800. Today in the Asian trading session there was a correction. At the moment, the technical pattern is ambiguous. Positions must be opened from the key levels. We recommend paying attention to the US government bonds yield.

The news background on Japan's economy is calm.

USD/JPY

The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also signals the growth of USD/JPY.

Trading recommendations
  • Support levels: 109.200, 108.700
  • Resistance levels: 109.800, 110.250

If the price fixes above the local resistance of 109.800, we recommend considering buying USD/JPY. The target movement level is 110.250.

Alternative option. If the price fixes below the level of 109.200, you need to look for entry points to the market to open short positions. The movement is tending to 108.850-108.700.

by JustForex, 2017.08.23

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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.