The Analytical Overview of the Main Currency Pairs on 2017.09.26

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18979
  • Open: 1.18465
  • % chg. over the last day: -0.60
  • Day's range: 1.18217 – 1.18615
  • 52 wk range: 1.0341 – 1.2069

Investors continue to evaluate the results of the elections in Germany. Additional pressure on the euro is provided by weak statistics on the IFO business climate index for Germany. At the moment, the bearish sentiment prevails on the EUR/USD currency pair. Yesterday, the euro weakened against the US dollar by more than 80 points. At the moment, the price is testing the local support of 1.18250. The mark 1.18700 is already a "mirror" resistance.

Economic reports from the USA on 2017.09.26:

  • - The consumer confidence index of CB at 17:00 (GMT+3:00);
  • - Sales of new housing at 17:00 (GMT+3:00).

At 19:45 (GMT+3:00) the Fed's Chairman Yellen will give a speech.

EUR/USD

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

The MACD histogram has fixed in the negative zone and continues to decline, which signals a bearish sentiment on EUR/USD.

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

Trading recommendations
  • Support levels: 1.18250, 1.18000
  • Resistance levels: 1.18700, 1.19000

We expect a further drop in EUR/USD. If the price fixes below the local support of 1.18250, we recommend you look for entry points to the market to open short positions. The movement is tending to 1.17750-1.17500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34812
  • Open: 1.34462
  • % chg. over the last day: -0.20
  • Day's range: 1.34360 – 1.35141
  • 52 wk range: 1.1450 – 1.3618

Yesterday, the GBP/USD currency pair held the key offer zone of 1.35750-1.36000, which triggered the bearish sentiment. At the moment, the trading instrument is testing the local support level of 1.34750. The GBP/USD currency pair has the potential for further correction. Demand for the US dollar is at a fairly high level. The additional pressure on the pound is put by ambiguity about the Brexit issue.

The news background on the economy of the UK is fairly calm today. At 11:30 (GMT+3:00) the data on the number of BBA Mortgage Approvals will appear.

GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.34750, 1.34000
  • Resistance levels: 1.36000

We expect a downward trend on the GBP/USD currency pair. If the price fixes below 1.34750, we recommend considering sales. The movement is tending potentially to the round level of 1.34000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23308
  • Open: 1.23678
  • % chg. over the last day: +0.19
  • Day's range: 1.23621 – 1.23918
  • 52 wk range: 1.2059 – 1.3795

On the USD/CAD currency pair, the bullish sentiment still prevails. In the near future, a further correction of the trading instrument is not excluded. At the moment, USD/CAD is near the round of 1.24000. The mark of 1.23500 is already a "mirror" support. We recommend paying attention to statistics from the United States.

There are no important economic reports from Canada today.

USD/CAD

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone and continues to rise, which indicates the growth of the USD/CAD currency pair.

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

Trading recommendations
  • Support levels: 1.23500, 1.23100
  • Resistance levels: 1.24000

If the USD/CAD quotes overcome the round level of 1.24000, it is necessary to search for entry points in the market for opening long positions. The movement is tending to 1.24500. When tracking the position, we recommend using a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.127
  • Open: 111.719
  • % chg. over the last day: -0.63
  • Day's range: 111.498 – 111.801
  • 52 wk range: 99.53 – 118.67

Geopolitical risks on the Korean Peninsula again worsened, which caused a growth in the demand for safe currencies. Yesterday, the yen increased against the US dollar by more than 50 points. Currently, USD/JPY is consolidating. The key trading range is 111.500-112.000. The attention is focused on economic reports from the US and the speech of the Fed's Chairman Yellen.

The Bank of Japan intends to adhere to the current monetary policy rate.

USD/JPY

The signals of the indicators are ambiguous. 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 negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment on USD/JPY.

Trading recommendations
  • Support levels: 111.500, 111.000
  • Resistance levels: 112.000, 112.700

If the price fixes below the level of 111.500, we recommend considering selling USD/JPY. The target movement level is 111.000.

Alternative option. If the USD/JPY rate overcomes the round level of 112.000, it is necessary to look for entry points to the market to open long positions. The movement is tending to 112.500.

by JustForex, 2017.09.26

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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.