The Analytical Overview of the Main Currency Pairs on 2018.01.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.20581
  • Open: 1.20143
  • % chg. over the last day: +0.07
  • Day's range: 1.20215 – 1.20297
  • 52 wk range: 1.0341 – 1.2069

Yesterday, there was a slight rollback on the EUR/USD currency pair after a sharp growth, caused by the forecasts that this year the European Central Bank would start cutting the quantitative easing program. At the moment, the EUR/USD quotes are in a sideways trend. Today, an increased volatility is expected in the market due to the release of important statistical data from the Eurozone and the United States. We recommend opening positions from the key levels.

The news feed on 2018.01.04:

  • - The index of business activity in the services sector in Germany at 10:55 (GMT+2:00);
    - The index of business activity in the services sector in the Eurozone at 11:00 (GMT+2:00);
    - Change in the number of people employed in the non-agricultural sector in the US at 15:15 (GMT+2:00);
    - The number of initial jobless claims in the US at 15:30 (GMT+2:00);
    - The index of business activity in the US at 16:45 (GMT+2:00).
EUR/USD

The signals of the indicators are ambiguous. The price has crossed 50 MA.

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

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

Trading recommendations
  • Support levels: 1.19900, 1.19400, 1.18600
  • Resistance levels: 1.20600

If the EUR/USD quotes begin to fall and fix below the support level of 1.19900, we recommend looking for entry points to the market to open short positions. The target movement level is 1.19500-1.19300.

An alternative may be the growth of the EUR/USD quotes to 1.21000-1.21200.

When tracking the positions, we recommend using a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35871
  • Open: 1.35128
  • % chg. over the last day: +0.10
  • Day's range: 1.35163 – 1.35301
  • 52 wk range: 1.1450 – 1.3618

Yesterday, the GBP/USD quotes fell after the release of data that in December the growth in business activity in the construction sector in the UK had slowed. At the moment, GBP/USD is in a sideways trend. The key range is 1.35000-1.35600. Positions must be opened above/below these marks.

The news feed on 2018.01.04:

  • - The index of business activity in the services sector in the UK at 11:30 (GMT+2:00).

We also recommend paying attention to reports from the USA.

GBP/USD

The signals of the indicators are ambiguous. The price has crossed 50 MA.

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

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

Trading recommendations
  • Support levels: 1.35000, 1.34400, 1.33700
  • Resistance levels: 1.35600, 1.36000

If the GBP/USD currency pair fixes above the already "mirror" resistance of 1.35600, we recommend considering purchases. The movement is tending potentially to 1.36000-1.36200.

Alternative option. If the quotes begin to fall and fix below the support of 1.35000, it is necessary to look for entry points to the market to open short positions. The target movement level is 1.34600-1.34400.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25117
  • Open: 1.25358
  • % chg. over the last day: -0.12
  • Day's range: 1.25185 – 1.25252
  • 52 wk range: 1.2059 – 1.3795

Yesterday, the USD/CAD quotes rose slightly, but today have started to decline again. At the moment, the technical pattern is ambiguous on the USD/CAD currency pair. Investors expect additional drivers. Local support and resistance levels are 1.24950 and 1.25550, respectively. It is necessary to open positions from the key levels.

At 15:30 (GMT+2:00), raw material price index in Canada will be published. We also recommend you to pay attention to the economic reports from the United States.

USD/CAD

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

The MACD histogram is in the negative zone and continues to decline, which gives a signal to sell USD/CAD.

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

Trading recommendations
  • Support levels: 1.24950
  • Resistance levels: 1.25550, 1.26350, 1.27250

If the USD/CAD quotes continue to decline and fix below the support of 1.24950, it is necessary to consider sales. The movement is tending potentially to 1.24500-1.24300.

Alternative option. If the USD/CAD quotes overcome local resistance of 1.25550, we recommend looking for entry points to the market to open long positions. The target movement level is 1.25900-1.26100.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.258
  • Open: 112.466
  • % chg. over the last day: +0.11
  • Day's range: 112.622 – 112.634
  • 52 wk range: 99.53 – 118.67

Yesterday, the US dollar strengthened against the Japanese yen, as a result the USD/JPY currency pair rose. At the moment, the technical pattern is ambiguous. The key trading range is 112.250-112.750. It is recommended to open positions if the price fixes above/below these marks. It is necessary to pay attention to the economic reports from the United States.

The news feed on economy of Japan is calm.

USD/JPY

The price is between 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 USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.

Trading recommendations
  • Support levels: 112.250
  • Resistance levels: 112.750, 113.300

If the price fixes below the support level of 112.250, we recommend considering sales of USD/JPY. The movement is tending potentially to 111.850-111.650.

Alternative option. If the price fixes above the resistance of 112.750, it is necessary to look for entry points to the market to open long positions. The target movement level is 113.150-113.350.

by JustForex, 2018.01.04

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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