The Analytical Overview of the Main Currency Pairs on 2017.09.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18908
  • Open: 1.19067
  • % chg. over the last day: +0.24
  • Day's range: 1.19026 – 1.19297
  • 52 wk range: 1.0341 – 1.2069

Since the beginning of this month, EUR/USD has been consolidating. The key trading range is still 1.18700-1.19250. Yesterday's trades ended with a slight strengthening of the single currency. At the moment, EUR/USD is testing the upper border of the trading range (1.19250). We recommend you to pay attention to statistics from the USA.

The news line on 2017.09.06:

  • - The US balance of trade at 15:30 (GMT+3:00);
  • - The index of business activity in the non-manufacturing sector of the US from ISM at 17:00 (GMT+3:00);
  • - The Fed's "Beige Book" at 21:00 (GMT+3:00).
EUR/USD

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is in the positive zone and continues to rise, which signals a bullish sentiment on EUR/USD.

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

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

If the EUR/USD quotes overcome the level of 1.19250, we recommend searching for entry points to the market for opening long positions. The target level of movement is 1.19750-1.20000.

Alternative option. If the price fixes below the support level of 1.18700, it is necessary to consider sales of EUR/USD. The movement is tending to 1.18250-1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29064
  • Open: 1.30286
  • % chg. over the last day: +0.84
  • Day's range: 1.30179 – 1.30443
  • 52 wk range: 1.1450 – 1.3447

Yesterday aggressive purchases were observed on the GBP/USD currency pair despite weak data on business activity in the services sector of Great Britain. The pound strengthened against the US dollar by more than 125 points. The currency found resistance at 1.30400. The mark of 1.29750 is already the "mirror" support. We expect economic reports from the USA.

The news background on the UK economy is calm today.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.29750, 1.29000
  • Resistance levels: 1.30400

We believe that the GBP/USD currency pair has the potential for further growth. If the price fixes above the local resistance of 1.30400, we recommend looking for entry points to the market to open long positions. The movement is tending to 1.30750-1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24125
  • Open: 1.23707
  • % chg. over the last day: -0.39
  • Day's range: 1.23635 – 1.23993
  • 52 wk range: 1.2414 – 1.3795

Yesterday, sales prevailed on USD/CAD. At the moment, investors have adopted a wait-and-see attitude before the meeting of the Bank of Canada. Most experts believe that the regulator will keep the interest rate at the previous level of 0.75%. I would like to note that the latest statistics on the economy of Canada indicates a positive trend. We recommend paying attention to the comments of representatives of the Central Bank.

News background on the economy of Canada on 2017.09.06:

  • - Labor productivity at 15:30 (GMT+3:00);
  • - The balance of trade at 15:30 (GMT+3:00);
  • - The decision on the interest rate of the Bank of Canada at 17:00 (GMT+3:00).
USD/CAD

The price has crossed 50 MA, which at the moment is a fairly strong dynamic resistance.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.23500, 1.23000
  • Resistance levels: 1.24150, 1.24900

Today we recommend reducing risks when opening positions. Entry points to the market should be sought from the key levels.

If the price fixes above 1.24150, we recommend considering USD/CAD purchases. The target level of movement is 1.24900-1.25250.

Alternative option. If the price fixes below the key support 1.23500, it is necessary to consider selling USD/CAD. The movement is tending potentially to the round level of 1.23000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.670
  • Open: 108.793
  • % chg. over the last day: -1.03
  • Day's range: 108.500 – 108.843
  • 52 wk range: 99.53 – 118.67

On the USD/JPY currency pair the "bearish" sentiment still prevails. Yesterday, the drop in quotations exceeded 1%. At the moment, the trading instrument is in a sideways trend. The key trading range is 108.500-108.850. In the near future, a technical correction is not excluded. We recommend paying attention to the US government bonds yield.

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

USD/JPY

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 USD/JPY.

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: 108.500, 108.000
  • Resistance levels: 108.850, 109.250, 109.800

If the statistics from the US turns out to be weak, the downward trend on the USD/JPY currency pair may continue. The movement is tending to the round level of 108.000.

An alternative may be the correction of the USD/JPY quotations to the level of 109.250-109.500.

by JustForex, 2017.09.06

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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.