The Analytical Overview of the Main Currency Pairs on 2017.07.26

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16425
  • Open: 1.16429
  • % chg. over the last day: +0.02
  • Day's range: 1.16197 – 1.16537
  • 52 wk range: 1.0366 – 1.1684

Yesterday, trading on EUR/USD was quite active. At the same time, a unidirectional trend was not observed. The currency held a round level of 1.17000, which caused a correction in the afternoon. Support for the US currency was provided by positive data on the consumer confidence index and a sharp increase in the US government bonds yield. Today investors' attention will be focused on the Fed meeting. Experts believe that the regulator will leave the key interest rate at the same level. We recommend you to pay attention to the Fed representatives' comments and statements.

Economic reports from the USA on 2017.07.26:
  • – Sales of new homes at 17:00 (GMT+3:00);
  • – The decision on the Fed interest rate at 21:00 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has begun to decline and moved to the negative zone, which indicates the power of sellers.

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

Trading recommendations
  • Support levels: 1.16200, 1.15800, 1.14850
  • Resistance levels: 1.16750

Today, trading activity and volatility on the majors can significantly increase. It is necessary to reduce risks when opening positions.

If the price fixes above the local resistance of 1.16750, a further growth of the EUR/USD currency pair is possible. The target level of movement is 1.17250-1.17500.

Alternative option. If the EUR/USD quotes overcome the local support of 1.16200, a correction may develop. The movement is tending potentially to 1.15500. When tracking a position, you must use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30281
  • Open: 1.30250
  • % chg. over the last day: -0.02
  • Day's range: 1.29988 – 1.30319
  • 52 wk range: 1.1450 – 1.3447

At the moment, GBP/USD is consolidating before the publication of the UK GDP report. The following key support and resistance levels can be identified: 1.30000 and 1.30600, respectively. We recommend looking for entry points to the market from these marks.

At 11:30 (GMT+3:00), statistics on the UK GDP will appear. Also, it is necessary to pay attention to the news line from the USA.

GBP/USD

The signals of the indicators are ambiguous. The price tests 50 MA and 200 MA.

The MACD histogram has begun to decline and moved to the negative zone, which indicates a bearish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.30000, 1.29400
  • Resistance levels: 1.30600, 1.31100

If the statistics from Britain is positive, you should consider buying GBP/USD. The movement is tending potentially to 1.31000-1.31100.

Alternatively, the GBP/USD rate may drop to the support level of 1.29400

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25070
  • Open: 1.25001
  • % chg. over the last day: -0.01
  • Day's range: 1.24931 – 1.25182
  • 52 wk range: 1.2520 – 1.3795

The USD/CAD currency pair continues to consolidate. At the moment, the price is testing the strongest support of 1.25000. The local resistance is the level of 1.25500. Demand for Canadian currency is supported by the positive dynamics of the oil quotes. Futures for the WTI crude oil is traded above $48.00 per barrel. Nevertheless, the technical pattern is ambiguous. The market is waiting for additional drivers.

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

USD/CAD

Indicators do not send accurate signals. 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 has crossed the %D line. At the moment there are no signals.

Trading recommendations
  • Support levels: 1.25000
  • Resistance levels: 1.25500, 1.26000

If the price fixes below the round level of 1.25000, the downward trend in USD/CAD may continue. The movement is tending potentially to 1.24500-1.24250.

Alternative option. If the USD/CAD rate overcomes the local resistance of 1.25500, it is necessary to look for entry points to the market in order to open long positions. The target movement level is 1.26000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.089
  • Open: 111.880
  • % chg. over the last day: +0.81
  • Day's range: 111.769 – 112.087
  • 52 wk range: 99.53 – 118.67

Yesterday a correction was observed on USD/JPY. The currency of the "safe haven" weakened against the US dollar by more than 80 points. At the moment, the nearest resistance is the round level of 112.000. The 111.600 mark is already a "mirror" support. a Further correction of the USD/JPY quotes is possible. We recommend paying attention to the US government bonds yield.

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

USD/JPY

The price tests 200 MA, which at the moment is a strong dynamic resistance.

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

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

Trading recommendations
  • Support levels: 111.600, 111.150
  • Resistance levels: 112.000, 112.400

We expect a further correction of the USD/JPY currency pair. If the price fixes above the round level of 112.000, we recommend considering the purchases. The closest target for profit taking is the resistance level of 112.400. When tracking a position, you should use a trailing stop.

by JustForex, 2017.07.26

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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