The Analytical Overview of the Main Currency Pairs on 2017.07.12

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13974
  • Open: 1.14647
  • % chg. over the last day: +0.65
  • Day's range: 1.14528 – 1.14896
  • 52 wk range: 1.0366 – 1.1616

During yesterday's trading on EUR/USD, aggressive purchases were observed. The euro strengthened against the US dollar by more than 75 points. Investors are concerned about today's press conference of the Fed's Chairman. The currency found resistance at 1.14850. The 1.14400 mark is already a "mirror" support.

The attention of the financial markets participants will be directed to the speech of the head of the Federal Reserve System Yellen at 17:00 (GMT+3:00).

At 21:00 (GMT+3:00) the Fed's Beige Book will be published.

EUR/USD

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

The MACD histogram has fixed 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 below the %D line, which signals a correction on EUR/USD.

Trading recommendations
  • Support levels: 1.14400, 1.14000
  • Resistance levels: 1.14850

If the head of the Federal Reserve System confirms her past statements and points out the possibility of tightening the monetary policy this year, the US dollar could significantly strengthen against the major world currencies. We recommend considering sales of EUR/USD. The movement is tending potentially to the round level of 1.14000.

An alternative may be the further growth of the EUR/USD quotations. The target movement level is 1.15000-1.15250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28744
  • Open: 1.28453
  • % chg. over the last day: -0.16
  • Day's range: 1.28138 – 1.28648
  • 52 wk range: 1.1986 – 1.5020

Yesterday, the GBP/USD currency pair kept the key offer zone of 1.29000-1.29200, which caused the bearish sentiment. Today, the pound has continued to lose ground against the US dollar. The currency has formed a local support of 1.28150. The mark of 1.28600 is already a "mirror" resistance. We are waiting for the statistics from the UK.

At 11:30 (GMT+3:00) a report on the labor market in the UK will be published. Also, it is necessary to pay attention to the news feed from the USA.

GBP/USD

Indicators point to the power of sellers. The price is below 50 MA and 200 MA.

The MACD histogram is located in the negative zone and below the signal line, which signals a further drop in GBP/USD.

Stochastic Oscillator has fixed 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: 1.28150
  • УResistance levels: 1.28600, 1.29000

If the statistics on the UK labor market turns out to be weak, the downward trend in GBP/USD may continue. The target movement level is 1.27500.

An alternative may be the correction of the GBP/USD currency pair to the resistance level of 1.28600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28850
  • Open: 1.29121
  • % chg. over the last day: +0.16
  • Day's range: 1.28926 – 1.29228
  • 52 wk range: 1.2458 – 1.4692

Participants of the financial markets adopt a wait-and-see attitude ahead of the meeting of the Bank of Canada. Experts expect the regulator to tighten the monetary policy by 25 basis points. We recommend you to pay attention to the comments and statements of the Central Bank representatives. The key trading range is still 1.28750-1.29250.

At 17:00 (GMT+3:00) The meeting of the Bank of Canada will be held.

USD/CAD

The signals of the indicators are ambiguous. The price has crossed 50 MA.

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.28750
  • Resistance levels: 1.29250, 1.29900

We recommend waiting for the Bank of Canada decision on the monetary policy.

If the price fixes above the resistance level of 1.29250, purchases on the USD/CAD currency pair may prevail. The movement is tending potentially to 1.29900-1.30000.

Alternative option. If the USD/CAD quotes fixate below the support level of 1.28750, one should look for entry points in the market to open short positions. The movement is tending potentially to the round level of 1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 114.021
  • Open: 113.926
  • % chg. over the last day: -0.25
  • Day's range: 113.308 – 113.971
  • 52 wk range: 99.08 – 123.69

Yesterday the USD/JPY currency pair kept the local resistance of 114.450, which triggered aggressive sales in the second half of the day. Today, the yen's growth has continued. The 113.750 mark is already a "mirror" resistance. The key support is a round-level of 113.000. We are waiting for the speech of the Fed's head.

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

USD/JPY

The price is testing 200 MA, which is quite strong dynamic support.

The MACD histogram is located in the negative area and below the signal line, which indicates the power of sellers on USD/JPY.

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

Trading recommendations
  • Support levels: 113.000, 112.500
  • Resistance levels: 113.750, 114.450

If comments by the Fed's Chairman indicate the possibility of raising the key interest rate this year, the bullish sentiment may prevail on the USD/JPY currency pair. The movement is tending potentially to 114.000-114.450.

Alternatively, USD/JPY may drop further. The target level of movement is 112.750-112.500.

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.