The Analytical Overview of the Main Currency Pairs on 2017.08.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17721
  • Open: 1.17931
  • % chg. over the last day: +0.19
  • Day's range: 1.17878 – 1.18240
  • 52 wk range: 1.0339 – 1.1909

Yesterday's trading was calm. The main currency pairs are being traded in a fairly narrow range. The speeches of the FOMC representatives Bullard and Kashkari did not have a significant impact on the dynamics of the US dollar. At the moment, EUR/USD is consolidating. The key trading range is still 1.17750-1.18400.

The news background is calm today. At 17:00 (GMT+3:00) data on the number of open vacancies in the labor market JOLTS will be released.

EUR/USD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.17750, 1.17350
  • Resistance Levels: 1.18400

We expect a further correction of the EUR/USD currency pair. We recommend looking for entry points to the market to open short positions. The movement is tending potentially to 1.17750-1.17350.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30306
  • Open: 1.30300
  • % chg. over the last day: -0.08
  • Day's range: 1.30263 – 1.30536
  • 52 wk range: 1.1450 – 1.3447

At the moment, the GBP/USD currency pair is in sideways trend. The technical pattern is ambiguous. The key support and resistance levels are 1.30250 and 1.30600, respectively. We recommend you to open positions from these marks. The market is waiting for additional drivers.

The publication of important economic reports from the UK is not planned today.

GBP/USD

The signals of the indicators vary. The price is near 50 MA, which at the moment is a fairly strong dynamic resistance.

The MACD histogram has started to rise and consolidated above the signal line, indicating a bullish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.30250, 1.30000
  • Levels of resistance: 1.30600, 1.31250

If the price consolidates below 1.30250, we recommend to consider selling GBP/USD. The movement is tending potentially to 1.30000-1.29750.

Alternative option. If the GBP/USD quotes overcome local resistance of 1.30600, a correction may develop. The target movement level is 1.31000-1.31250.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26384
  • Open: 1.26720
  • % chg. over the last day: +0.25
  • Day's range: 1.26527 – 1.26813
  • 52 wk range: 1.2414 – 1.3795

Yesterday the USD/CAD correction continued. The currency reached a round level of 1.27000. The key support is the mark of 1.26200. Demand for the US dollar remains at a fairly high level. The USD/CAD currency pair has the potential for further growth. We recommend you to pay attention to the dynamics of oil quotes.

At 15:15 (GMT+3:00) data on the construction of new houses in Canada will be released.

USD/CAD

The signals of the indicators are ambiguous. The USD/CAD quotes fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has started to fall and is below the signal line, which gives a signal to sell USD/CAD.

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

Trading recommendations
  • Support levels: 1.26200, 1.25500
  • Resistance Levels: 1.27000

We believe that the USD/CAD correction may continue. We recommend you to consider buying. The movement is tending potentially to 1.27500. When tracking a position, one should use a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.689
  • Open: 110.709
  • % chg. over the last day: -0.05
  • Day's range: 110.527 – 110.807
  • 52 wk range: 99.53 – 118.67

At the moment, there is an ambiguous technical pattern on the USD/JPY currency pair. The yen is being traded in a flat. The key trading range is 110.400-110.900. The positions need to be opened from these marks. We recommend to pay attention to the yield of US government bonds.

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

USD/JPY

Indicators do not send accurate signals. The price crossed 50 MA and 200 MA.

The MACD histogram has started to decline and moved to the negative zone, which gives a signal to sell USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the USD/JPY quotes growth.

Trading recommendations
  • Support levels: 110.400, 110.000
  • Resistance levels: 110.900, 111.300

If the price consolidates above 110.900, we recommend considering buying USD/JPY. The immediate goal for profit-taking is 111.300.

Alternative option. If the price consolidates below the local support of 110.400, the bearish sentiment may dominate on the USD/JPY currency pair. The movement is tending potentially to the round level of 110.000.

by JustForex, 2017.08.08

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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.