The Analytical Overview of the Main Currency Pairs on 2017.12.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18614
  • Open: 1.18647
  • % chg. over the last day: +0.09
  • Day's range: 1.18558 – 1.18766
  • 52 wk range: 1.0341 – 1.2069

At the moment, there is an ambiguous technical pattern on the EUR/USD currency pair. Demand for the American currency remains at a high level. The trading instrument continues to test local support and resistance levels: 1.18500 and 1.18850, respectively. It is recommended to open positions if the price fixes above/below these marks. We are waiting for important economic reports.

The news feed on 2017.12.05:
  • - Statistics on business activity in the Eurozone at 11:00 (GMT+2:00);
  • - The index of business activity in the non-manufacturing sector of the United States from ISM at 17:00 (GMT+2:00).
EUR/USD

The indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.18500, 1.18000
  • Resistance levels: 1.18850, 1.19300, 1.19600

If the price fixes below 1.18500, we recommend you to look for entry points to the market to open short positions. The movement is tending to the round level of 1.18000.

Alternative option. If the price fixes above the local resistance of 1.18850, it is necessary to consider buying EUR/USD. The target level of movement is 1.19300-1.19600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34341
  • Open: 1.34817
  • % chg. over the last day: -0.13
  • Day's range: 1.34054 – 1.34818
  • 52 wk range: 1.1450 – 1.3618

At the moment, the bearish sentiment prevails on the GBP/USD currency pair. The price overcame 1.34350, which is already a "mirror" resistance. The closest support is at the round level of 1.34000. The trading instrument has the potential to further reduce. Nevertheless, we recommend you to open positions from the key levels. Participants of the financial markets expect important statistical data.

At 11:30 (GMT+2:00), the index of business activity in the services sector of the UK will be published.

GBP/USD

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

The MACD histogram is in the negative zone and below the signal line, which indicates a drop in the GBP/USD quotes.

Stochastic Oscillator has reached oversold zone, the %K line is below the %D line, which gives a weak signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.34000, 1.33350
  • Resistance levels: 1.34350, 1.35000, 1.35450

If the price fixes below the round level of 1.34000, the further fall in GBP/USD is expected. The movement is tending to 1.33500-1.33350.

Alternative option. If the price fixes above the "mirror" resistance of 1.34350, it is necessary to consider buying GBP/USD. The target movement level is 1.35000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26890
  • Open: 1.26735
  • % chg. over the last day: -0.33
  • Day's range: 1.26518 – 1.26832
  • 52 wk range: 1.2059 – 1.3795

On the USD/CAD currency pair the bearish sentiment is still prevailing. At the moment, the quotations are consolidating in the range of 1.26500-1.26850. In the near future, we do not rule out a technical correction. Positions must be opened from the key levels. We recommend paying attention to the news feed on the US economy.

At 15:30 (GMT+2:00) there will be data on Canada's trade balance.

USD/CAD

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

The MACD histogram is located in the negative zone and continues to decline, which signals a fall in the USD/CAD quotes.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a correction of the USD/CAD currency pair.

Trading recommendations
  • Support levels: 1.26500, 1.26000
  • Resistance levels: 1.26850, 1.27250, 1.27600

If the price fixes below 1.26500, it is necessary to consider sales of USD/CAD. The movement is tending to the round level of 1.26000.

Alternative option. If the price fixes above the "mirror" resistance level of 1.26850, we recommend looking for entry points to the market to open long positions. The movement is tending to 1.27250-1.27500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.757
  • Open: 112.406
  • % chg. over the last day: -0.35
  • Day's range: 112.378 – 112.695
  • 52 wk range: 99.53 – 118.67

Yesterday the sales prevailed on the USD/JPY currency pair. At the moment, the technical pattern is ambiguous. The price is testing a "mirror" resistance of 112.700. The key support is 112.350. Investors expect an additional driver. We recommend you to pay attention to the economic reports and the dynamics of the US government bonds yield. Positions must be opened from the key levels.

The news feed on Japan's economy is calm.

USD/JPY

The indicators do not send accurate signals. The price has crossed 50 MA.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 112.350, 112.000
  • Resistance levels: 112.700, 113.000, 113.500

If the statistics from the US is positive, we recommend you to look for entry points to the market to open long positions. The movement is tending to 113.000-113.500.

An alternative may be falling of the USD/JPY quotations to a round level of 112.000.

When tracking positions, it is better to use a trailing stop.

by JustForex, 2017.12.05

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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