The Analytical Overview of the Main Currency Pairs on 2017.09.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19068
  • Open: 1.18802
  • % chg. over the last day: -0.43
  • Day's range: 1.18728 – 1.19042
  • 52 wk range: 1.0341 – 1.2069

On Friday, the attention is focused on the report on the labor market in the United States. In August, 156,000 jobs were created in the non-agricultural sector of the country. Experts expected the figure at the level of 180,000. The growth of average hourly wages slowed to 0.1%. The unemployment rate increased from 4.3% to 4.4%. The US dollar kept its positions despite the weak labor market statistics. Support was provided by positive data on business activity in the US manufacturing sector from ISM. At the moment, the technical pattern is ambiguous. The key trading range is 1.18700-1.19250.

Today, the news background is calm. The publication of important economic reports is not planned. US financial markets are closed due to the holiday.

EUR/USD

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

The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator is located in the neutral zone, the %K line starts crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.18700, 1.17800
  • Resistance levels: 1.19250, 1.20000, 1.20500

We recommend opening positions from key levels.

If the price fixes below the local support 1.18700, it is necessary to consider sales of EUR/USD. The closest target for fixing profits is the mark of 1.18250.

Alternative option. If the EUR/USD quotes overcome the resistance level of 1.19250, we recommend searching for entry points to the market to open long positions. The movement is tending to 1.19500-1.19750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28940
  • Open: 1.29502
  • % chg. over the last day: +0.15
  • Day's range: 1.29360 – 1.29657
  • 52 wk range: 1.1450 – 1.3447

On Friday, purchases prevailed on GBP/USD. At the moment, the technical pattern is ambiguous. The following key support and resistance levels can be identified: 1.29350 and 1.29750, respectively. We recommend opening positions from these marks. We are waiting for statistics from the UK.

At 11:30 (GMT+3:00) the index of business activity in the construction sector in the UK will be published.

GBP/USD

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

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

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

Trading recommendations
  • Support levels: 1.29350, 1.29000, 1.28600
  • Resistance levels: 1.29750

If the statistics from the UK turns out to be weak, one should consider selling GBP/USD. The movement is tending to 1.29000-1.28750.

An alternative may be the growth of GBP/USD to 1.29750-1.30000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24805
  • Open: 1.24092
  • % chg. over the last day: -0.69
  • Day's range: 1.23750 – 1.24209
  • 52 wk range: 1.2414 – 1.3795

On the USD/CAD currency pair, the "bearish" sentiment prevails. During Friday's trading, the Canadian dollar rose against the US dollar by more than 100 points. The currency found support at 1.23750. The mark 1.24500 is already a "mirror" resistance. At the moment, USD/CAD is consolidating. In the near future, a technical correction is not excluded.

Financial markets in Canada are closed due to the holiday.

USD/CAD

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

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

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

Trading recommendations
  • Support levels: 1.23750, 1.23000
  • Resistance levels: 1.24500, 1.24900

If the price fixes above the local resistance 1.24150, a correction may develop on the USD/CAD currency pair. The target level of movement is 1.24500-1.24900.

Alternative option. If the price fixes below the support level 1.23750, we recommend considering selling USD/CAD. The movement is tending to 1.23500-1.23250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.960
  • Open: 109.498
  • % chg. over the last day: -0.42
  • Day's range: 109.383 – 109.930
  • 52 wk range: 99.53 – 118.67

Today, the demand for safe currencies has grown significantly. The tension on the Korean peninsula again worsened. The USD/JPY currency pair opened with a gap down of more than 70 points. At the moment, the yen is testing the level of support at 109.400. The trading instrument has the potential for further reduction.

There are no important economic reports from Japan today.

USD/JPY

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

The MACD histogram is located in the negative zone and continues to decline, which signals a fall in USD/JPY.

Stochastic Oscillator is 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: 109.400, 108.850
  • Resistance levels: 110.000, 110.600

We believe that the USD/JPY currency pair may continue to decline. We recommend looking for entry points to the market for opening short positions. The target movement level is 108.850.

by JustForex, 2017.09.04

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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.