The Analytical Overview of the Main Currency Pairs on 2017.07.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13135
  • Open: 1.14213
  • % chg. over the last day: +0.60
  • Day's range: 1.14060 – 1.14272
  • 52 wk range: 1.0366 – 1.1616

The bullish sentiment prevailed on EUR/USD yesterday. The euro rose against the US dollar by more than 100 points. The currency formed a local resistance of 1.14250. The closest support is 1.13750. Today, the statistics on the labor market in the United States is in the focus of attention. Most experts expect the improvement of the basic indices. At the same time, the preliminary report from ADP turned out to be weak. Positions must be opened from the key levels.

The news feed on the US economy on 2017.07.07:
  • – An average hourly wage – 15:30 (GMT+3:00);
  • – Change in the number of people employed in the nonagricultural sector – 15:30 (GMT+3:00);
  • – The unemployment rate – 15:30 (GMT+3:00).
EUR/USD

The EUR/USD quotes have fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive area, 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 above the %D line, which signals an increase in EUR/USD.

Trading recommendations
  • Support levels: 1.13750, 1.13150
  • Resistance levels: 1.14250

Today we recommend reducing risks when opening a position.

If the statistics from the US turns out to be weak, the upward trend on the EUR/USD currency pair may continue. The movement is tending potentially to the round level of 1.15000.

An alternative may be the correction on EUR/USD to the level of 1.13500-1.13150.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29297
  • Open: 1.29663
  • % chg. over the last day: +0.26
  • Day's range: 1.29483 – 1.29745
  • 52 wk range: 1.1986 – 1.5020

The technical pattern on GBP/USD is still ambiguous. Yesterday's trades closed with a slight strengthening of the pound against the US dollar. At the moment, the key levels of support and resistance are 1.29000 and 1.297500 respectively. We expect statistics from the UK and the USA.

Economic reports from the UK:
  • – The production volume in the manufacturing industry at 11:30 (GMT+3:00);
  • – The balance of visible trade at 11:30 (GMT+3:00).
GBP/USD

Indicators do not send accurate signals. The price is above 50 MA and 200 MA, which indicates the power of buyers.

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

Stochastic Oscillator has fixed near the oversold zone, the %K line is below the %D line, which gives a weak signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.29000, 1.28300
  • Resistance levels: 1.29750, 1.30250

If economic reports from the UK are positive, we recommend considering purchases to the resistance level 1.30250.

An alternative may be the correction on GBP/USD to the round level of 1.29000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29551
  • Open: 1.29724
  • % chg. over the last day: +0.17
  • Day's range: 1.29701 – 1.29933
  • 52 wk range: 1.2458 – 1.4692

At the moment, the USD/CAD currency pair is being traded in the flat. The key trading range is still 1.29150-1.30000. Investors expect publication of reports on the labor market in the US and Canada. Pressure on the Canadian dollar is caused by negative dynamics in the market of "black gold".

Statistics from Canada:
  • – The report on the labor market at 15:30 (GMT+3:00);
  • – Ivey's business activity index at 17:00 (GMT+3:00).
USD/CAD

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

The MACD histogram has fixed in the positive zone and above the signal line, which indicates the power of the buyers.

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

Trading recommendations
  • Support levels: 1.29150
  • Resistance levels: 1.30000, 1.30500, 1.31000

If the statistics from Canada proves to be weak, a correction movement may be developed on the USD/CAD currency pair. The target movement level is 1.30500-1.31000. When following a position, one should use a trailing stop.

An alternative may be a further drop in USD/CAD. The movement is tending potentially to the round level of 1.29000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.249
  • Open: 113.159
  • % chg. over the last day: -0.10
  • Day's range: 113.093 – 113.831
  • 52 wk range: 99.08 – 123.69

Today in the Asian trading session, aggressive purchases were observed on USD/JPY. The currency has overcome the key mark of 113.600, which is already a "mirror" support. The nearest resistance is the round level of 114.000. The technical pattern indicates further growth of USD/JPY. However, positions should be opened from the key levels. We are waiting for statistics from the USA.

There are no important economic reports from Japan today.

USD/JPY

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

The MACD histogram is located in the positive area and above the signal line, which signals a bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 113.600, 112.850, 112.150
  • Resistance levels: 114.000

If the report on the labor market in the US is positive, the upward trend in the USD/JPY currency pair may continue. The movement is tending potentially to 114.500.

An alternative may be a corrective movement on USD/JPY to the level of 113.000-112.850.

by JustForex, 2017.07.07

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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.