The Analytical Overview of the Main Currency Pairs on 2017.08.14

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17706
  • Open: 1.18221
  • % chg. over the last day: +0.42
  • Day's range: 1.18092 – 1.18389
  • 52 wk range: 1.0339 – 1.1909

On Friday, the bullish sentiment prevailed on the EUR/USD currency pair. The single currency added more than 50 points. This is due to the release of a weak inflation report in the US. In July, the consumer price index was 0.1%. Experts expected the figure at 0.2%. The currency found resistance at 1.18400. The 1.17850 level is already a "mirror" support. At the moment, the technical pattern on EUR/USD is ambiguous. We recommend opening positions from the key levels.

The news background on 2017.08.14:

The publication of important economic reports from the Eurozone and the United States is not planned today.

EUR/USD

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

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 has fixed in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.17850, 1.17250
  • Resistance levels: 1.18400, 1.18850

If the price fixes above the local resistance of 1.18400, we recommend considering buying EUR/USD. The movement is tending potentially to 1.18850.

Alternative option. If the EUR/USD quotes overcome the level of 1.17850, it is necessary to look for entry points to the market in order to open short positions. The target movement level is 1.17250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29715
  • Open: 1.29793
  • % chg. over the last day: +0.29
  • Day's range: 1.29788 – 1.30215
  • 52 wk range: 1.1450 – 1.3447

The GBP/USD currency pair is in a sideways trend for quite a long time. Last week, the trading instrument formed key support and resistance levels: 1.29600 and 1.30250, respectively. At the moment, investors have taken a wait-and-see attitude. In the current trading week, the important statistics on the UK economy will be published: reports on inflation, the labor market, and retail sales.

Today, the news background on the UK economy is calm.

GBP/USD

Indicators do not send accurate signals. The price is between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has fixed in the positive area, 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 below the %D line, which indicates a drop in GBP/USD.

Trading recommendations
  • Support levels: 1.29600
  • Resistance levels: 1.30250, 1.30750

If the price fixes below the support level of 1.29600, the bearish sentiment may prevail on the GBP/USD currency pair. The movement is tending potentially to the round level of 1.29000.

Alternative option. If the GBP/USD quotes overcome the resistance level of 1.30250, we recommend considering purchases. The target movement level is 1.30750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27360
  • Open: 1.26653
  • % chg. iver the last day: -0.48
  • Day's range: 1.26639 – 1.27062
  • 52 wk range: 1.2414 – 1.3795

On Friday, the USD/CAD currency pair moved away from local highs. Sales prevailed on the market. The Canadian dollar strengthened against the US dollar by more than 60 points. At the moment, the technical pattern is ambiguous. The currency tests the round level of 1.27000.

There are no important economic reports from Canada today.

USD/CAD

Indicators do not send accurate signals. The USD/CAD quotes have fixed between 50 MA and 200 MA.

The MACD histogram has begun to rise and is above the signal line, which indicates the bullish sentiment on USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also signals the purchase of USD/CAD.

Trading recommendations
  • Support levels: 1.26600, 1.26150
  • Resistance levels: 1.27000, 1.27500

If the price fixes above the round level of 1.27000, we recommend considering buying USD/CAD. The immediate goal for profit-taking is 1.27500.

Alternative option. If the price fixes below the level of 1.26600, the bearish sentiment may prevail on the USD/CAD currency pair. The movement is tending to the support level of 1.26150.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.175
  • Open: 109.114
  • % chg. over the last day: -0.03
  • Day's range: 109.036 – 109.783
  • 52 wk range: 99.53 – 118.67

Last week, the yen strengthened significantly against the US dollar. The growth of geopolitical risks on the Korean peninsula and the positive data on Japan's GDP support the demand for the currency of the "safe haven". Nevertheless, at the moment the correction is observed on USD/JPY. The currency tests a "mirror" resistance of 109.750. We recommend opening positions from the key levels.

The news background on the US economy is calm today.

USD/JPY

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

The MACD histogram has moved to the positive zone and continues to rise, indicating a bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 109.350, 109.000
  • Resistance levels: 109.750, 110.100

If the price fixes above the "mirror" resistance of 109.750, the correction of USD/JPY may continue. The closest target for profit taking is the 110.100 mark.

Alternative option. If the USD/JPY quotes overcome the local support of 109.350, we recommend considering sales. The movement is tending to the round level of 109.00.

by JustForex, 2017.08.14

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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.