The Analytical Overview of the Main Currency Pairs on 2017.09.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19484
  • Open: 1.19940
  • % chg. over the last day: +0.33
  • Day's range: 1.19867 – 1.20195
  • 52 wk range: 1.0341 – 1.2069

Yesterday, the US dollar weakened slightly relative to the "majors". At the moment, the technical pattern is ambiguous. Investors took a wait-and-see attitude before the decision of the Fed. Most likely, the regulator will leave the range of the key interest rate unchanged at 1.00-1.25%. We recommend you to pay attention to the updated economic forecasts and comments of the Central Bank representatives. The EUR/USD currency pair is consolidating in the range of 1.19850-1.20250. We recommend opening positions from the key levels.

News background on the 2017.09.20:

  • - Sales in the secondary housing market in the US at 17:00 (GMT+3:00);
  • - The decision on the Fed's interest rate at 21:00 (GMT+3:00);

At 21:30 (GMT+3:00) a press conference of the FOMC will be held.

EUR/USD

The price has fixed above 50 MA and 200 MA, which indicates 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 EUR/USD.

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

Trading recommendations
  • Support levels: 1.19850, 1.19200
  • Resistance levels: 1.20250, 1.20750

Today, it is necessary to reduce risks when opening positions.

If the Fed publishes optimistic economic forecasts and points out the possibility of a further increase in the interest rate, demand for the US dollar could significantly increase. We recommend considering buying EUR/USD to around 1.20750-1.21000.

An alternative may be a downward trend on the EUR/USD currency pair. The movement is tending to 1.19200-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34927
  • Open: 1.34934
  • % chg. over the last day: +0.15
  • Day's range: 1.34901 – 1.35361
  • 52 wk range: 1.1450 – 1.3447

On the GBP/USD currency pair there was an ambiguous technical pattern. At the moment, the trading instrument is consolidating. The key support and resistance levels are 1.34750-1.35350, respectively. Participants of the financial markets expect additional drivers. The attention is focused on the Fed's meeting and statistics from the UK.

At 11:30 (GMT+3:00) a report on retail sales in the UK will be published.

GBP/USD

The signals of the indicators are ambiguous. The price has crossed 50 MA.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.34750, 1.34000
  • Resistance levels: 1.35350, 1.36000

If the statistics from the UK turns out to be positive, the bullish sentiment may prevail on the GBP/USD currency pair. The movement is tending to the round level of 1.36000.

An alternative may be the correction of GBP/USD to 1.34250-1.34000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22891
  • Open: 1.22853
  • % chg. over the last day: +0.03
  • Day's range: 1.22689 – 1.22938
  • 52 wk range: 1.2414 – 1.3795

Yesterday's trade on USD/CAD was quite active. However, a unidirectional trend was not observed. At the moment, the currency is in a sideways trend. The following key levels of support and resistance can be identified: 1.22600 and 1.23100, respectively. We recommend paying attention to the news background on the US economy.

The publication of important economic reports from Canada today is not planned.

USD/CAD

Indicators do not send accurate signals. The price is close to 50 MA, which at the moment is a fairly strong dynamic support.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.22600, 1.22000
  • Resistance levels: 1.23100, 1.23750

If the price fixes above 1.23100, we recommend considering USD/CAD purchases. The target movement level is 1.23750-1.24000.

Alternative option. If the USD/CAD rate overcomes the support level of 1.22600, it is necessary to search for entry points to open short positions. The movement is tending to the round level of 1.22000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.518
  • Open: 111.577
  • % chg. over the last day: +0.02
  • Day's range: 111.336 – 111.645
  • 52 wk range: 99.53 – 118.67

Currently, USD/JPY is consolidating in the range of 111.250-111.850. The technical pattern is ambiguous. The demand for safe assets has weakened as a result of a decrease in tension on the Korean peninsula. Investors are waiting for the decision of the Fed. We recommend looking for entry points to the market from the key levels.

In the Asian trading session, quite optimistic statistics on Japan's trade balance was published.

USD/JPY

The signals of the indicators are ambiguous. The price has crossed 50 MA.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 111.250, 110.700
  • Resistance levels: 111.850, 112.250

If the price fixes below the support level of 111.250, we recommend considering selling USD/JPY. The movement is tending to 110.700-110.500.

Alternative option. If the USD/JPY quotes overcome the level of 111.850, it is necessary to search for entry points to open long positions. The target movement level is 112.500-112.750.

by JustForex, 2017.09.20

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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.