The Analytical Overview of the Main Currency Pairs on 2017.06.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12057
  • Open: 1.11395
  • % chg. over the last day: -0.53
  • Day's range: 1.11379 – 1.11649
  • 52 wk range: 1.0366 – 1.1616

Yesterday, the head of the Federal Reserve Bank of New York, W. Dudley, supported the American currency. The official reported positive changes in the labor market and a high level of confidence, which strengthened investors' expectations about another increase in interest rates in 2017. Trades ended with the EUR/USD quotes falling by more than 0.50%. At the moment, the key trading range is 1.11300-1.11750.

Today, we recommend you to pay attention to the speeches of the FOMC representatives: Fisher, Rosengren, and Kaplan.

EUR/USD

Indicators point to the bearish sentiment. The price has fixed below 50 MA and 200 MA.

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

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

Trading recommendations
  • Support levels: 1.11300
  • Resistance levels: 1.11750, 1.12000

We believe that the downward trend in EUR/USD may continue. We recommend looking for entry points to the market in order to open short positions. The movement is tending potentially to the round level of 1.11000. When tracking a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27611
  • Open: 1.27307
  • % chg. over the last day: -0.34
  • Day's range: 1.26669 – 1.27578
  • 52 wk range: 1.1986 – 1.5020

On the GBP/USD currency pair, there are aggressive sales. At the moment, the pound has weakened against the US dollar by more than 60 points. The mark 1.27250 is already a "mirror" resistance. The nearest support is at the level of 1.26500. We look forward to the speech of the head of the Bank of England.

At 10:30 (GMT+3:00) the press conference of the Chairman of the Bank of England Carney will be held.

GBP/USD

Indicators point to the power of sellers. The GBP/USD quotes have fixed below 50 MA and 200 MA.

The MACD histogram continues to decline and is below the signal line, which points to a bearish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.26500
  • Resistance levels: 1.27250, 1.28000

We expect a further drop in GBP/USD. We recommend considering selling. The target level of movement is 1.26250-1.26000.

Alternative option. If the price fixes above the 1.27600 mark, you need to look for entry points in the market to open long positions. The immediate goal for profit taking is the round level of 1.28000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32122
  • Open: 1.31886
  • % chg. over the last day: +0.09
  • Day's range: 1.31882 – 1.32283
  • 52 wk range: 1.2458 – 1.4692

Yesterday, the USD/CAD currency pair was in a sideways trend. A significant change in the Canadian dollar did not happen. The currency continues to test key support and resistance levels: 1.32000 and 1.32600. At the moment, the technical pattern is ambiguous. It is better to open positions from the key levels.

At 15:30 (GMT+3:00) the data on the volume of wholesale sales in Canada will be released. We also recommend you to pay attention to the news feed from the USA.

USD/CAD

The USD/CAD quotes are close to 50 MA, which is quite a strong dynamic resistance.

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which sends a signal to buy USD/CAD.

Trading recommendations
  • Support levels: 1.32000
  • Resistance levels: 1.32600, 1.33000, 1.33500

If the price fixes above the resistance level of 1.32600, we recommend buying USD/CAD. The movement is tending potentially to 1.33000-1.33500.

Alternative option. If the USD/CAD quotes overcome the round level of 1.32000, the bearish sentiment may prevail. The target movement level is 1.31500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.877
  • Open: 111.507
  • % chg. over the last day: +0.65
  • Day's range: 111.453 – 111.782
  • 52 wk range: 99.08 – 123.69

During yesterday's trading on USD/JPY, bullish sentiments prevailed. The yen weakened against the US dollar by more than 70 points. The currency found resistance at the level of 111.750. Demand for the US dollar remains at a fairly high level. It is necessary to pay attention to the speeches of the Fed's officials.

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

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 111.200, 110.700
  • Resistance levels: 111.750

We believe that the upward trend on USD/JPY may continue. We recommend looking for entry points to the market in order to open long positions. The movement is tending potentially to 112.00-112.250.

Alternative option. If the USD/JPY quotes overcome the level of 111.200, a correction may develop. The target movement level is 111.000-110.700.

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.