The Analytical Overview of the Main Currency Pairs on 2017.11.03

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16222
  • Open: 1.16569
  • % chg. over the last day: +0.34
  • Day's range: 1.16445 – 1.16678
  • 52 wk range: 1.0341 – 1.2069

The EUR/USD currency pair continues to consolidate. Investors took a wait-and-see attitude before the publication of the report on the labor market in the United States. Experts expect improvement of the key indicators. It should be recalled that the preliminary statistics was quite optimistic. The key trading range is still 1.16200-1.16600. We recommend opening positions from the key levels.

The news background on 2017.11.03:

  • - The report on the labor market in the USA at 14:30 (GMT+2:00);
  • - The index of business activity in the non-manufacturing sector of the United States from ISM at 16:00 (GMT+2:00).
EUR/USD

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.16200, 1.15800
  • Resistance levels: 1.16600, 1.17000, 1.17350

If the statistics from the US is positive, we recommend considering sales of EUR/USD. The target level of movement is 1.15800-1.15500.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.17000-1.17500.

When tracking positions, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32489
  • Open: 1.30574
  • % chg. over the last day: -1.45
  • Day's range: 1.30397 – 1.30764
  • 52 wk range: 1.1450 – 1.3618

The Bank of England, as expected, raised the key interest rate by 25 basis points to 0.50%. At the same time, aggressive sales were observed on the GBP/USD currency pair. The pound weakened against the US dollar by more than 200 points. The regulator is cautious about a further tightening of the monetary policy. The Central Bank intends to raise the interest rate gradually and to a certain level. At the moment, the key trading range is 1.30400-1.30750. Today, the report on the labor market in the United States is at the center of attention. Positions must be opened from the key levels.

At 11:30 (GMT+2:00), the index of business activity in the services sector of the UK will be published.

GBP/USD

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, but above the signal line, which gives a weak signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.30400, 1.30000
  • Resistance levels: 1.30750, 1.31250

If the price fixes below 1.30400, we expect a further drop in GBP/USD. The immediate goal for profit taking is a round level of 1.30000.

Alternative option. If the price fixes above the local resistance of 1.30750, a correction movement may develop on the GBP/USD currency pair. The movement is tending to 1.31250.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28662
  • Open: 1.28116
  • % chg. over the last day: -0.47
  • Day's range: 1.28005 – 1.28268
  • 52 wk range: 1.2059 – 1.3795

There is an ambiguous technical pattern on the USD/CAD currency pair. At the moment, the trading instrument is consolidating in the range of 1.28000-1.28350. Participants of the financial markets are expecting reports on the labor market in the US and Canada. We recommend opening positions from the key support and resistance levels.

At 14:30 (GMT+2:00) the statistics on the labor market in Canada will be published.

USD/CAD

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 negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

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: 1.28000, 1.27500
  • Resistance levels: 1.28350, 1.28750, 1.29100

If the price fixes below the round level of 1.28000, we recommend considering selling USD/CAD. The movement is tending to 1.27500-1.27250.

An alternative may be the growth of the USD/CAD currency pair to the level of 1.28750-1.29100.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 114.129
  • Open: 114.082
  • % chg. over the last day: -0.13
  • Day's range: 113.891 – 114.140
  • 52 wk range: 99.53 – 118.67

The USD/JPY currency pair is still being traded in the flat. The technical pattern is ambiguous. During the trading sessions, the USD/JPY quotes have been testing the key support and resistance levels: 113.800 and 114.200 respectively. Investors expect additional drivers. Today such an event will be a report on the labor market in the United States. We also recommend paying attention to the US government bond yield. Positions must be opened from the key levels.

The financial markets of Japan are closed due to the holiday.

USD/JPY

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

The MACD histogram has begun to rise and moved to the positive zone, which indicates the growth of USD/JPY.

Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

Trading recommendations
  • Support levels: 113.800, 113.450, 113.000
  • Resistance levels: 114.200, 114.500

If the statistics from the US is optimistic, the "bullish" sentiment may prevail on the USD/JPY currency pair. The target level of movement is 114.750-115.000.

Alternatively, USD/JPY may drop to the level of 113.450-113.000.

When following the positions, we recommend using a trailing stop.

by JustForex, 2017.11.03

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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.