The Analytical Overview of the Main Currency Pairs on 2017.09.28

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17919
  • Open: 1.17447
  • % chg. over the last day: -0.36
  • Day's range: 1.17212 – 1.17562
  • 52 wk range: 1.0341 – 1.2069

Since the beginning of this week, a pronounced downward trend has been observed on EUR/USD. At the moment, the price is testing the local support level of 1.17200. The nearest resistance is at 1.17750. Some representatives of the Federal Reserve System believe that one should not rush to raise interest rates in conditions of weak inflation. Yesterday's economic reports were mixed. At the same time, demand for the US dollar remains at a fairly high level. We are waiting for statistics from the USA.

News background on the US economy on 2017.09.28:

  • - The GDP data at 15:30 (GMT+3:00);
  • - The balance of foreign trade in goods at 15:30 (GMT+3:00);
  • - The number of initial applications for unemployment benefits at 15:30 (GMT+3:00).

The FOMC members George and Fisher will give a speech at 16:45 (GMT+3:00) and 17:15 (GMT+3:00), respectively.

EUR/USD

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

The MACD histogram is in the negative zone and continues to decline, indicating a further decline in EUR/USD.

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

Trading recommendations
  • Support levels: 1.17200, 1.17000
  • Resistance levels: 1.17750, 1.18400

If the statistics from the US is positive, we expect the continuation of the downward trend on EUR/USD. The movement is tending to 1.16750-1.16500.

An alternative may be the growth of the EUR/USD quotations to the level of 1.18000-1.18400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34548
  • Open: 1.33795
  • % chg. over the last day: -0.45
  • Day's range: 1.33494 – 1.34093
  • 52 wk range: 1.1450 – 1.3618

At the moment, there is an ambiguous technical pattern on GBP/USD. The trading instrument is consolidating. The key support and resistance levels are 1.33700 and 1.34100, respectively. Participants of the financial markets expect additional drivers. It is recommended to open positions if the price fixes above/below these marks.

At 11:15 (GMT+3:00) the head of the Bank of England Carney will give a speech.

GBP/USD

The signals of the indicators are different. The price is below 50 MA and 200 MA, which indicates the power of sellers.

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

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

Trading recommendations
  • Support levels: 1.33700, 1.33000
  • Resistance levels: 1.34750, 1.36000

If the price fixes below 1.33700, we recommend considering sales of GBP/USD. The target movement level is 1.33000.

Alternative option. If the price fixes above the 1.34100 mark, you need to look for entry points in the market to open long positions. The movement is tending to the offer zone of 1.34500-1.34750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23370
  • Open: 1.24761
  • % chg. over the last day: +1.10
  • Day's range: 1.24673 – 1.25191
  • 52 wk range: 1.2059 – 1.3795

Yesterday aggressive purchases were observed on USD/CAD. The Canadian dollar weakened against the US currency by more than 1%. The head of the Bank of Canada, Stephen Poloz, said that one should not hurry up with another increasing the key interest rate this year. The regulator is concerned about the significant strengthening of the Canadian dollar. At the moment, the key trading range is 1.24600-1.25100. In the near future, a technical correction is not excluded.

We recommend paying attention to the news background on the US economy.

USD/CAD

The price has fixed above 50 MA and 200 MA, which indicates 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 USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the correction of the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.24600, 1.24100
  • Resistance levels: 1.25100

If economic reports from the US are positive, we expect further growth of the USD/CAD currency pair. The movement is tending to 1.25500-1.25750.

Alternatively, USD/CAD may drop to 1.24600-1.24250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.207
  • Open: 112.819
  • % chg. over the last day: +0.58
  • Day's range: 112.694 – 113.204
  • 52 wk range: 99.53 – 118.67

At the moment, the USD/JPY currency pair is in a sideways trend. The technical pattern is ambiguous. The price tests the "mirror" support of 112.700. Yesterday, the trading instrument formed a local resistance of 113.200. The attention is focused on economic reports from the United States. The US currency is supported by the growth in the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

Indicators do not send accurate signals. The price has fixed above 50 MA and 200 MA, which indicates 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 USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment on USD/JPY.

Trading recommendations
  • Support levels: 112.700, 112.200
  • Resistance levels: 113.200

If the statistics from the US prove to be strong, we recommend considering buying USD/JPY. The target movement level is 113.500.

Alternatively, USD/JPY may drop to 112.200.

by JustForex, 2017.09.28

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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.