The Analytical Overview of the Main Currency Pairs on 2017.10.19

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17662
  • Open: 1.17864
  • % chg. over the last day: +0.25
  • Day's range: 1.17864 – 1.18224
  • 52 wk range: 1.0341 – 1.2069

Yesterday, the EUR/USD currency pair kept the local support of 1.17450, which triggered the bullish sentiment. A weak report on the US real estate market put pressure on the US currency. At the same time, the growth of the US government bonds yield limited the decline in USD. At the moment, the EUR/USD currency pair is in a sideways trend. The key trading range is 1.17800-1.18250. We are waiting for statistics on the US economy.

At (15:30) GMT+3:00 the index of production activity from the Federal Reserve Bank of Philadelphia will be published.

EUR/USD

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

The MACD histogram is located in the positive zone and above the signal line, which indicates a bullish sentiment on EUR/USD.

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

Trading recommendations
  • Support levels: 1.17800, 1.17450
  • Resistance levels: 1.18250, 1.18700

If the statistics on the US economy is optimistic, we recommend looking for entry points to the market for opening short positions. The movement is tending to 1.17800-1.17450.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.18500-1.18700.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31894
  • Open: 1.32029
  • % chg. over the last day: +0.16
  • Day's range: 1.31814 – 1.32283
  • 52 wk range: 1.1450 – 1.3618

Yesterday, the National Statistical Office of Great Britain published a mixed report on the labor market. Bank of England officials are worried that salaries are growing more slowly than inflation, which in September reached 3%. At the moment, the bearish sentiment is prevailing on the GBP/USD currency pair. Participants of the financial markets expect a report on retail sales in the UK at 11:30 (GMT+3:00).

We recommend you to pay attention to statistics on the US economy.

GBP/USD

Indicators do not send accurate signals. The price has crossed 50 MA and 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 below the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31600, 1.31000
  • Resistance levels: 1.32250, 1.32650

If the report on retail sales in the UK turns out to be weak, it is necessary to consider selling GBP/USD. The movement is tending potentially to the round level of 1.31500-1.31250.

An alternative may be the growth of GBP/USD to 1.32250-1.32650.

When tracking positions, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25216
  • Open: 1.24652
  • % chg. over the last day: -0.43
  • Day's range: 1.24514 – 1.24772
  • 52 wk range: 1.2059 – 1.3795

Yesterday, the bearish sentiment prevailed on USD/CAD. The Canadian dollar has increased against the US dollar by more than 50 points. At the moment, the trading instrument is in a sideways trend. The key support and resistance levels are 1.24500 and 1.24750, respectively. We are waiting for statistics from the USA.

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

USD/CAD

At the moment, indicators point to the power of sellers. The price has fixed below 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 USD/CAD.

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

Trading recommendations
  • Support levels: 1.24500, 1.24000
  • Resistance levels: 1.24750, 1.25000, 1.25250

If the price fixes below the support level 1.24500, we recommend considering selling USD/CAD. The movement is tending to the round level of 1.24000.

Alternative option. If the USD/CAD quotes overcome the mark of 1.24750, it is necessary to consider purchases. The target level of movement is 1.25000-1.25250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.194
  • Open: 112.930
  • % chg. over the last day: +0.72
  • Day's range: 112.557 – 113.147
  • 52 wk range: 99.53 – 118.67

At the moment, there is a correction of the USD/JPY quotations after a significant growth in the rate of yesterday's trading. The price is testing a "mirror" support level of 112.550. The nearest resistance level is at 112.850. At the moment, the technical pattern is ambiguous. Further correction of the USD/JPY currency pair is not excluded. We are waiting for statistics from the USA. We recommend opening positions from the key levels.

In the Asian trading session, a mixed report on Japan's trade balance was published.

USD/JPY

The signals of the indicators are ambiguous. The price has crossed 50 MA, which at the moment is a fairly strong dynamic support.

The MACD histogram has begun to decline and is below the signal line, which signals a correction of the USD/JPY currency pair.

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

Trading recommendations
  • Support levels: 112.550, 112.250, 112.000
  • Resistance levels: 112.850, 113.100

If the statistics on the US economy turns out to be weak, we expect a further fall in the USD/JPY currency pair. The movement is tending to 112.250-112.000.

An alternative may be the growth of the USD/JPY quotations to the level of 112.850-113.100.

by JustForex, 2017.10.19

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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.