The Analytical Overview of the Main Currency Pairs on 2017.08.03

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18015
  • Open: 1.18554
  • % chg. over the last day: +0.42
  • Day's range: 1.18331 – 1.18590
  • 52 wk range: 1.0339 – 1.1909

Yesterday, purchases prevailed on EUR/USD. The euro strengthened against the US dollar by more than 50 points. The preliminary report on the labor market in the US from ADP was rather weak. This statistic put pressure on the American currency. At the same time, EUR/USD could not fixate above the round level of 1.19000. The current technical pattern indicates a possible correction. We expect statistics from the EU and the US.

News background on 2017.08.03:

  • - Indices of business activity in Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00);
  • - The index of business activity in the non-manufacturing sector of the US from ISM at 17:00 (GMT+3:00).
EUR/USD

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

The MACD histogram has begun to decline and is below the signal line, which signals a correction on EUR/USD.

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

Trading recommendations
  • Support levels: 1.18400, 1.18000, 1.17600
  • Resistance levels: 1.19000

If the price fixes below the local support of 1.18400, a correction may develop on the EUR/USD currency pair. The movement is tending potentially to 1.18000-1.17600.

Alternative option. If the statistics from the US turns out to be weak, we recommend considering buying EUR/USD. The immediate goal for profit taking is the round level of 1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31980
  • Open: 1.32219
  • % chg. over the last day: +0.19
  • Day's range: 1.32075 – 1.32370
  • 52 wk range: 1.1450 – 1.3447

At the moment, GBP/USD is in a sideways trend. Investors adopted a wait-and-see attitude before the decision of the Bank of England. It should be recalled that at the last meeting of the Central Bank, three officials supported the increase in the key interest rate. At the moment, most experts believe that the regulator will leave the monetary policy at the same level. We recommend you to pay attention to the comments of representatives and the report of the Bank of England on inflation.

News background on the economy of Great Britain:

  • - The index of business activity in the services sector of the UK at 11:30 (GMT+3:00);
  • - The decision on the interest rate of the Bank of England at 14:00 (GMT+3:00);
  • - Speech by the Head of the Bank of England Carney at 14:30 (GMT+3:00).
GBP/USD

The price is close to 50 MA, which is quite strong dynamic support.

The MACD histogram is located in the positive area and continues to rise, indicating a bullish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.32000, 1.31500
  • Resistance levels: 1.32350

If the Bank of England indicates that the issue of tightening monetary policy may be raised in the near future, demand for the pound may grow significantly. The movement is tending to the round level of 1.33000.

An alternative may be the fall of GBP/USD to the "mirror" support of 1.31500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25360
  • Open: 1.25690
  • % chg. over the last day: +0.29
  • Day's range: 1.25638 – 1.26186
  • 52 wk range: 1.2520 – 1.3795

In the Asian trading session, there was aggressive buying on USD/CAD. The currency has overcome the round level of 1.26000. The closest support is the level of 1.25700. The technical pattern indicates a further correction on the USD/CAD currency pair. We are waiting for statistics from the USA.

There are no important economic reports from Canada today.

USD/CAD

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

The MACD histogram is located in the positive zone and continues to rise, which signals a bullish sentiment on USD/CAD.

Stochastic Oscillator is in the overbought zone, the %K line crossed the %D line. There are currently no signals.

Trading recommendations
  • Support levels: 1.25700, 1.25200
  • Resistance levels: 1.26200

If the price fixes above 1.26200, we recommend you to look for entry points to the market to open long positions. The target movement level is 1.26750-1.27000. When tracking a position, you must use a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.354
  • Open: 110.645
  • % chg. over the last day: +0.35
  • Day's range: 110.555 – 110.827
  • 52 wk range: 99.53 – 118.67

At the moment, there is an ambiguous technical pattern on USD/JPY. The currency is in a sideways trend. The key trading range is 110.350-110.900. The positions must be opened from these marks. The market is waiting for additional drivers. We recommend you to pay attention to statistics from the USA.

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

USD/JPY

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

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

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: 110.350, 110.000
  • Resistance levels: 110.900, 111.300

If the statistics from the US turns out to be positive, a bullish sentiment may prevail on the USD/JPY currency pair. The movement is tending potentially to 111.300.

Alternatively, USD/JPY may drop to the round level of 110.000.

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.