The Analytical Overview of the Main Currency Pairs on 2018.07.26

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16805
  • Open: 1.17297
  • % chg. over the last day: +0.44
  • Day's range: 1.17206 – 1.17342
  • 52 wk range: 1.0571 – 1.2557

Yesterday, the bullish sentiment was observed on the EUR/USD currency pair after the publication of a weak report on new home sales in the US. In June, sales fell to 631K, while experts expected 669K. At the moment, the technical pattern is ambiguous. The key support and resistance levels are: 1.17150 and 1.17450, respectively. We recommend opening positions from these marks. The further growth of the trading instrument is not excluded.

The news feed on 2018.07.26:
  • - A decision on the interest rate by ECB at 14:45 (GMT+3:00);
  • - Core durable goods orders in the US at 15:30 (GMT+3:00).
EUR/USD

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

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 has crossed the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.17150, 1.16850, 1.16500
  • Resistance levels: 1.17450, 1.17800

If the price fixes below 1.17150, we recommend considering sales of EUR/USD. The movement is tending to 1.16850-1.16500.

Alternative option. If the price fixes above the resistance level of 1.17450, the EUR/USD quotes are expected to grow. The movement is tending to 1.17800-1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31421
  • Open: 1.31887
  • % chg. over the last day: +0.41
  • Day's range: 1.31847 – 1.31981
  • 52 wk range: 1.2361 – 1.4345

Yesterday, the bullish sentiment was observed on the GBP/USD currency pair. At the moment, the technical pattern is ambiguous. Investors expect additional drivers. The key support and resistance levels are: 1.31700 and 1.32200, respectively. The positions must be opened from these marks. In the near future, a technical correction is not ruled out.

The news feed on the UK economy is calm.

GBP/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, but below the signal line, which gives a weak signal to buy GBP/USD.

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

Trading recommendations
  • Support levels: 1.31700, 1.31200, 1.30700
  • Resistance levels: 1.32200, 1.32600, 1.33000

If the price fixes above 1.32200, further growth of GBP/USD is expected. The movement is tending to 1.32600-1.32800.

Alternative option. If the price fixes below support 1.31700, the correction of the GBP/USD quotes is expected. The movement is tending to 1.31200-1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31542
  • Open: 1.30451
  • % chg. over the last day: -0.87
  • Day's range: 1.30352 – 1.30454
  • 52 wk range: 1.2059 – 1.3795

Yesterday, aggressive sales were observed on the USD/CAD currency pair. The decrease in quotations was almost 100 points. At the moment, the trading instrument is in a sideways trend. Local support and resistance levels are: 1.30250 and 1.30550, respectively. The positions must be opened from these marks. The trading instrument is tending to reduce.

Publication of important news from Canada is not expected.

USD/CAD

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

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

Trading recommendations
  • Support levels: 1.30250, 1.29800
  • Resistance levels: 1.30550, 1.31000, 1.31400

If the price fixes below the support level of 1.30250, further reduction of the currency pair is expected. The movement is tending to 1.29800-1.29600.

If the price fixes above 1.30550, one should look for entry points to the market to open long positions. The target movement level is 1.31000-1.31200.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.141
  • Open: 110.974
  • % chg. over the last day: -0.31
  • Day`s range: 110.651 – 110.732
  • 52 wk range: 104.56 – 114.74

During yesterday's trading the bearish sentiment prevailed on the USD/JPY currency pair. The quotes fell by more than 70 points. At the moment, the key levels of support and resistance are: 110.600 and 110.900, respectively. The positions must be opened from these marks. We recommend you to pay attention to the yield of US 10-year government bonds.

The news feed on Japan's economy is calm.

USD/JPY

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

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the growth of quotations.

Trading recommendations
  • Support levels: 110.600, 110.300
  • Resistance levels: 110.900, 111.300, 111.800

If the price fixes below the 110.600 level, the USD/JPY currency pair is expected to decline. The movement is tending to 110.300-110.000.

Alternative option. If the price fixes above the 110.900 mark, you should consider buying USD/JPY. The movement is tending to 111.300-111.500.

by JustForex, 2018.07.26

We recommend you to get acquainted with the daily overview of the news feed.

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.

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