The Analytical Overview of the Main Currency Pairs on 2017.10.02

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17861
  • Open: 1.17915
  • % chg. over the last day: +0.24
  • Day's range: 1.17440 – 1.18151
  • 52 wk range: 1.0341 – 1.2069

At the moment, the bearish sentiment prevails on the EUR/USD currency pair. The single currency is under pressure due to the referendum in Catalonia. Demand for the US dollar remains at a fairly high level. The price is testing the local support of 1.17400. The trading instrument has the potential to further reduce. We are waiting for important economic reports.

The economic calendar for 2017.10.02:

  • - Statistics on business activity in the manufacturing sector of Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00);
  • - The unemployment rate in the Eurozone at 12:00 (GMT+3:00);
  • - The index of business activity in the manufacturing sector of the US from ISM at 17:00 (GMT+3:00).
EUR/USD

The EUR/USD quotes have fixed below 50 MA and 200 MA, which indicates the power of sellers.

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

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

Trading recommendations
  • Support levels: 1.17200, 1.17000
  • Resistance levels: 1.17750, 1.18300

If the price fixes below the local support of 1.17400, we recommend considering sales of EUR/USD. The immediate goal for profit taking is the round level of 1.17000. When following a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34382
  • Open: 1.33720
  • % chg. over the last day: -0.33
  • Day's range: 1.33226 – 1.34020
  • 52 wk range: 1.1450 – 1.3618

At the moment, a downward trend is observed on the GBP/USD currency pair. In the Asian trading session, the drop in quotations exceeded 0.5%. The price has reached the local support of 1.33250. The mark 1.33650 is already a "mirror" resistance. A further correction of the GBP/USD quotes is possible. We are waiting for important statistics from the UK.

At 11:30 (GMT+3:00), the index of business activity in the manufacturing sector of Great Britain will be published.

GBP/USD

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

The MACD histogram is in the negative zone and below the signal line, which signals the sale of GBP/USD.

Stochastic Oscillator is located near the oversold zone, the %K line has crossed the %D line. There are signals at the moment.

Trading recommendations
  • Support levels: 1.33250, 1.33000
  • Resistance levels: 1.33650, 1.34250

If the GBP/USD rate overcomes the local support of 1.33250, we recommend you to look for entry points to open short positions. The movement is tending to 1.33000-1.32750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24227
  • Open: 1.24863
  • % chg. over the last day: +0.35
  • Day's range: 1.24623 – 1.25209
  • 52 wk range: 1.2059 – 1.3795

The bullish sentiment still prevents on the USD/CAD currency pair. Over the past week, the Canadian dollar has weakened against the US dollar by more than 150 points. At the moment, the price is testing the key resistance of 1.25250. The nearest support is at the level of 1.24600. Investors expect statistics on the US economy.

The news background on Canada's economy is calm today.

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 and continues to rise, which signals an increase in the USD/CAD quotes.

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

Trading recommendations
  • Support levels: 1.24600, 1.24200
  • Resistance levels: 1.25250

If economic reports from the US are positive, we expect further growth of the USD/CAD currency pair. The target movement level is 1.25750-1.26000.

Alternatively, USD/CAD may drop to the level of 1.24600-1.24500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.271
  • Open: 112.543
  • % chg. over the last day: +0.13
  • Day's range: 112.445 – 113.059
  • 52 wk range: 99.53 – 118.67

At the moment there are aggressive purchases of USD/JPY. In the Asian trading session, the yen lost more than 50 points in price. The price has reached a round level of 113.000. The 112.700 mark is already the "mirror" support. We recommend you to pay attention to the statistics and the US government bonds yield.

Today mixed economic reports from Japan have been published.

USD/JPY

The USD/JPY 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 continues to rise, indicating a bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 112.700, 112.250
  • Resistance levels: 113.000, 113.250

If the economic reports from the US are optimistic, we recommend considering buying USD/JPY. The movement is tending to 113.500.

An alternative may be the reduction of the USD/JPY currency pair to 112.700-112.500.

by JustForex, 2017.10.02

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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.