The Analytical Overview of the Main Currency Pairs on 2017.06.21

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11395
  • Open: 1.11334
  • % chg. over the last day: -0.11
  • Day's range: 1.11128 – 1.11385
  • 52 wk range: 1.0366 – 1.1616

Yesterday, the EUR/USD currency pair held a "mirror" resistance of 1.11600, which caused a downward trend in the afternoon. The euro is pressed by weak data on the producer price index in Germany. In May, the indicator fell by 0.2%. At the moment, the currency is testing the key support of 1.11300. We are waiting for statistics on the real estate market in the US.

At 17:00 (GMT+3:00) the data on sales in the secondary housing market in the United States will appear.

EUR/USD

Indicators do not send accurate signals. 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 EUR/USD.

Stochastic Oscillator is close to the oversold zone, the %K line crosses the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.11300
  • Resistance levels: 1.11600, 1.12000

If economic reports from the US are positive, the downward trend in EUR/USD may continue. The movement is tending potentially to 1.11000-1.10750. An alternative may be the correction of the EUR/USD currency pair to 1.11600-1.11850.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27307
  • Open: 1.25987
  • % chg. over the last day: -0.82
  • Day's range: 1.25792 – 1.26353
  • 52 wk range: 1.1986 – 1.5020

Yesterday, the pound fell because of the comments of the chairman of the Central Bank of Great Britain. The fall of the GBP/USD quotations exceeded 100 points. The head of the Bank of England, Carney, said that there is no need to hurry with tightening monetary policy this year, as the latest statistics on wages and consumer spendings was ambiguous. At the moment, the currency is testing a round level of 1.26000.

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

GBP/USD

The price has fixed below 50 MA and 200 MA, which indicates the strength of sellers.

The MACD histogram is in the negative zone and continues to decline, which signals a further drop in 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: 1.26000
  • Resistance levels: 1.26400, 1.27250

We believe that the downward trend in GBP/USD may continue. If the price fixes below the round level of 1.26000, we recommend you to look for entry points to the market in order to open short positions. The target movement level is 1.25500.

Alternative option. If the GBP/USD rate overcomes the local resistance of 1.26400, a correction may develop. The movement is tending potentially to 1.26800-1.27000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31886
  • Open: 1.32639
  • % chg. over the last day: +0.41
  • Day's range: 1.32570 – 1.32978
  • 52 wk range: 1.2458 – 1.4692

During yesterday's trading, purchases prevailed on USD/CAD. The Canadian dollar weakened against the US dollar by more than 75 points. The currency of Canada is pressed by a negative dynamics in the black gold market. At the moment, the price is testing the round level 1.33000.

Today, the publication of important economic reports from Canada is not planned.

USD/CAD

The USD/CAD quotes are close to 200 MA, which is a strong dynamic resistance.

The MACD histogram has fixed in the positive zone and above the signal line, which signals the bullish sentiment on USD/CAD.

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

Trading recommendations
  • Support levels: 1.32500, 1.32000
  • Resistance levels: 1.33000, 1.33500

We believe that the correction on the USD/CAD currency pair may continue. If the price fixes above the round level of 1.33000, we recommend considering buying. The immediate goal for profit-taking is 1.33500.

Alternative option. If the statistics from the US are weak and the price fixes below the local support of 1.32500, you need to look for entry points to the market in order to open short positions. The target movement level is 1.32250-1.32000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.507
  • Open: 111.425
  • % chg. over the last day: -0.17
  • Day's range: 111.075 – 111.489
  • 52 wk range: 99.08 – 123.69

At the moment, correction is observed on USD/JPY. The currency moved away from local highs amid falling of the US government bonds yield. The key trading range is 111.200-111.750. We are waiting for statistics from the USA.

We recommend paying attention to the news line from the USA.

USD/JPY

The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is in the negative zone and below the signal line, indicating a further correction on the USD/JPY currency pair.

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

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

If the statistics from the US is positive and the price fixes above the level of 111.400, further growth of the USD/JPY quotations is possible. The movement is tending potentially to 111.750-112.000.

An alternative may be the correction of USD/JPY to the support level of 110.700.

by JustForex, 2017.06.21

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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.