The Analytical Overview of the Main Currency Pairs on 2017.09.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19156
  • Open: 1.20216
  • % chg. over the last day: +0.93
  • Day's range: 1.20171 – 1.20924
  • 52 wk range: 1.0341 – 1.2069

Demand for a single currency has grown significantly. Yesterday, the ECB, as expected, left interest rates unchanged. The regulator reported on positive changes in the economy and raised the forecast for the GDP growth in 2017 to 2.2%. The head of the Central Bank, Mario Draghi, said that in the near future a decision will be made to reduce the asset buyout program. These changes may occur in October this year. The currency found resistance at 1.20900. The nearest support is at around 1.20200.

Today, the publication of important economic reports from the US and the EU is not planned.

EUR/USD

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

The MACD histogram is located in the positive zone and above the signal line, which indicates a bullish sentiment on EUR/USD.

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

Trading recommendations
  • Support levels: 1.20200, 1.19750
  • Resistance levels: 1.20900

We believe that demand for the euro remains at a fairly high level. We recommend opening positions in the direction of the current trend. If the price fixes above the round level of 1.21000, it is necessary to consider buying EUR/USD. The movement is tending to 1.21500.

Alternative option. If the price overcomes the local support of 1.20200, a correction may develop on the EUR/USD currency pair. The target movement level is 1.19750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30416
  • Open: 1.30991
  • % chg. over the last day: +0.48
  • Day's range: 1.30939 – 1.31499
  • 52 wk range: 1.1450 – 1.3447

On the GBP/USD currency pair, the bullish sentiment still prevails. Yesterday, the growth of quotations exceeded 60 points. Today, the pound rally continued. At the moment, the key levels of support and resistance are 1.31000 and 1.31500 respectively. We are waiting for statistics from the UK.

News background on the economy of Britain:

  • - Production in the manufacturing industry at 11:30 (GMT+3:00);
  • - The balance of trade at 11:30 (GMT+3:00).
GBP/USD

The price is above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram has fixed in the positive zone and above the signal line, which indicates further growth of GBP/USD.

Stochastic Oscillator has begun to exit the overbought zone, the %K line is below the %D line, which sends a signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.31000, 1.30400
  • Resistance levels: 1.31500

If economic reports from the UK are optimistic, we recommend considering buying GBP/USD. The movement is tending potentially to the round level of 1.32000.

An alternative may be the correction of GBP/USD to 1.31000-1.30750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22202
  • Open: 1.21147
  • % chg. over the last day: -0.93
  • Day's range: 1.20606 – 1.21321
  • 52 wk range: 1.2414 – 1.3795

Yesterday, the aggressive sales were again observed on the USD/CAD currency pair. The Canadian dollar added more than 100 points. Participants of the financial markets expect that the Bank of Canada can continue to tighten the monetary policy, which supports the demand for the Canadian dollar. At the moment, the key trading range is 1.20650-1.21500. The oil quotations recovery also supports the currency of Canada.

At 15:30 (GMT+3:00) a report on the labor market in Canada will be published.

USD/CAD

At the moment, the indicators aren't sending accurate signals. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the correction of the USD/CAD currency pair.

Trading recommendations
  • Support levels: 1.20650
  • Resistance levels: 1.21500, 1.22350, 1.23000

If the statistics from Canada proves to be positive, the downward trend on USD/CAD may continue. The target level of movement is 1.20250-1.20000.

An alternative may be the correction of the USD/CAD quotations to the level of 1.21750-1.22350.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.218
  • Open: 108.370
  • % chg. over the last day: -0.86
  • Day's range: 107.575 – 108.485
  • 52 wk range: 99.53 – 118.67

From the beginning of this week, the bearish sentiment prevails on USD/JPY. Today in the Asian trading session, aggressive sales have been observed. The yen increased against the US dollar by more than 70 points. The currency has formed a local support level of 107.650. The 108.500 mark is already a "mirror" resistance. We recommend paying attention to the US government bonds yield.

Mixed economic reports from Japan were published in the Asian trading session.

USD/JPY

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone and below the signal line, which gives a signal to sell USD/JPY.

Stochastic Oscillator has reached the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 107.650, 107.000
  • Resistance levels: 108.500, 109.000, 109.350

We recommend opening positions in the direction of the current trend. If the price fixes below the local support of 107.650, you need to look for entry points to the market to open short positions. The movement is tending potentially to 107.250-107.000.

by JustForex, 2017.09.08

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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.