The Analytical Overview of the Main Currency Pairs on 2018.07.23

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16417
  • Open: 1.17261
  • % chg. over the last day: +0.66
  • Day's range: 1.17142 – 1.17360
  • 52 wk range: 1.0571 – 1.2557

On Friday, aggressive purchases were observed on the EUR/USD currency pair. The US currency went down after the bold statements by Donald Trump. The growth of quotations exceeded 100 points. At the moment, the key levels of support and resistance are: 1.17100 and 1.17500 respectively. We recommend opening positions from these marks. The further growth of the trading instrument is not excluded.

The news feed on 2018.07.23:
  • - Existing home sales in the US at 17:00 (GMT+3:00).
EUR/USD

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, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator is in the oversold zone, the %K line is above the %D line, which also indicates the growth of the EUR/USD currency pair.

Trading recommendations
  • Support levels: 1.17100, 1.16700, 1.16300
  • Resistance levels: 1.17500, 1.18000

If the price fixes below 1.17100, the EUR/USD correction is expected. The movement is tending to 1.16700-1.16500.

Alternative option. If the price fixes above the resistance level of 1.17500, it is necessary to consider buying EUR/USD. The movement is tending to the round level of 1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30131
  • Open: 1.31136
  • % chg. over the last day: +0.92
  • Day's range: 1.31135 – 1.31311
  • 52 wk range: 1.2361 – 1.4345

On Friday, aggressive purchases were observed on the GBP/USD currency pair. The growth of quotations exceeded 110 points. At the moment, the trading instrument is in a sideways trend. The key support and resistance levels are: 1.31200 and 1.31700, respectively. Positions must be opened from the key levels. The further growth of quotations is not excluded.

The news feed on the UK economy is calm.

GBP/USD

Indicators do not send accurate signals: the price is testing 200 MA.

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

Stochastic Oscillator is located 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: 1.31200, 1.30700, 1.30200
  • Resistance levels: 1.31700, 1.32200, 1.32700

If the price falls below the 1.31200 level, the GBP/USD quotes correction is expected. The potential for movement to 1.30700-1.30500.

Alternative option. If the price fixes above 1.31700, it is necessary to consider buying GBP/USD. The movement is tending to 1.32200-1.32500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32706
  • Open: 1.31273
  • % chg. over the last day: -0.90
  • Day's range: 1.31321 – 1.31421
  • 52 wk range: 1.2059 – 1.3795

On Friday, aggressive sales were observed on the USD/CAD currecny pair. The decrease in quotations exceeded 150 points. Last week, a number of economic reports were published in Canada. The core consumer price index in June was 0.1%. The core retail sales index rose to 1.4% and was above the forecasted value of 0.7%. At the moment, the quotes are in a sideways trend. The key trading range is 1.31200-1.31500. In the near future, a technical correction is not ruled out. Positions need to be opened from the key levels of support and resistance.

Important news from Canada is not expected today.

USD/CAD

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 leaving the overbought zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.31200, 1.30800
  • Resistance levels: 1.31500, 1.31900, 1.32300

If the price fixes below the support level of 1.31200, further reduction of the currency pair is expected. The movement is tending to 1.30800-1.30600.

If the price fixes above the level of 1.31500, you need to look for entry points to the market to open long positions. The target movement level is 1.31900-1.32100.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.430
  • Open: 111.371
  • % chg. over the last day: -0.94
  • Day's range: 110.913 – 110.973
  • 52 wk range: 104.56 – 114.74

On Friday, the USD/JPY quotes dropped significantly. The decrease in the currency pair exceeded 150 points. At the moment the quotes are consolidating in the range of 110.800-111.150. In the near future, a technical correction is not ruled out. We recommend opening positions from the key support and resistance levels. It is also necessary to pay attention to the yield of US 10-year government bonds.

The news feed on the economy of Japan is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 110.800, 110.400
  • Resistance levels: 111.150, 111.500, 111.900

If the price fixes below the 110.800 level, further decrease of the USD/JPY currency pair is expected. The movement is tending to 110.400-110.200.

Alternative option. If the price fixes above the level of 111.150, it is necessary to consider buying USD/JPY. The movement is tending to 111.500-111.700.

by JustForex, 2018.07.23

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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