The Analytical Overview of the Main Currency Pairs on 2018.01.17

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22599
  • Open: 1.22637
  • % chg. over the last day: -0.30
  • Day's range: 1.22159 – 1.22241
  • 52 wk range: 1.0492 – 1.2296

At the moment, there is a correction of the EUR/USD currency pair. Investors expect additional drivers. The key trading range is 1.22000-1.22600. The trading instrument is tending potentially to further reduce. We expect important economic reports from the Eurozone and the US.

The news feed on 2018.01.17:

  • - The Eurozone consumer price index at 12:00 (GMT+2:00);
    - The US industrial production volume at 16:15 (GMT+2:00);
    - Fed's Beige Book at 21:00 (GMT+2:00).
EUR/USD

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

The MACD histogram began to decline and moved to the negative zone, which indicates the fall in the EUR/USD quotes.

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

Trading recommendations
  • Support levels: 1.22000, 1.21250, 1.20500
  • Resistance levels: 1.22600, 1.23150

If the price fixes below the round level of 1.22000, we expect a further decline of the EUR/USD currency pair. The movement is tending potentially to 1.21500-1.21250.

Alternative option. If the price fixes above the support level of 1.22600, it is necessary to look for entry points to the market to open long positions. The movement is tending potentially to 1.23000-1.23200.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.37919
  • Open: 1.37921
  • % chg. over the last day: -0.09
  • Day's range: 1.37593 – 1.37820
  • 52 wk range: 1.2014 – 1.3820

The British pound holds positions against the US dollar. According to the latest consumer prices report, the inflation pressure has slightly decreased. At the moment, the GBP/USD currency pair is consolidating. The key trading range is 1.37400-1.38000. We recommend opening positions from the key support and resistance levels.

The news feed on the UK economy is calm today.

GBP/USD

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

The MACD histogram does not send accurate signals. The indicator is near the 0 mark.

Stochastic Oscillator is in the oversold zone, the %K line crossed the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.37400, 1.37000, 1.36400
  • Resistance levels: 1.38000, 1.38350

If the price fixes below the support level of 1.37400, it is necessary to consider sales of GBP/USD. The movement is tending potentially to the round level of 1.37000.

Alternative option. If the price fixes above the round level of 1.38000, further growth of GBP/USD is expected. The movement is tending potentially to 1.38350-1.38500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24242
  • Open: 1.24176
  • % chg. over the last day: +0.16
  • Day's range: 1.24417 – 1.24556
  • 52 wk range: 1.2059 – 1.3795

Yesterday, trading on the USD/CAD currency pair was fairly calm. At the moment, the technical pattern is ambiguous. Investors are waiting for the Bank of Canada meeting. It is expected that the regulator will raise the key interest rate by 25 points to 1.25%. From the beginning of this week, strong support and resistance levels were formed: 1.24100 and 1.24600, respectively. We recommend you to open positions from these levels.

At 17:00 (GMT+2:00) there will be the Bank of Canada meeting.

USD/CAD

Indicators don’t send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is located in the positive zone and continues to rise, indicating the bullish sentiment.

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

Trading recommendations
  • Support levels: 1.24100, 1.23750
  • Resistance levels: 1.24600, 1.25000, 1.25500

Today we recommend reducing risks when opening positions. If the price fixes above the resistance level 1.24600, it is necessary to consider buying USD/CAD. The movement is tending to 1.25000-1.25500.

Alternatively, USD/CAD may fall to the level of 1.23750-1.23500.

When tracking positions, one should use a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.542
  • Open: 110.449
  • % chg. over the last day: +0.34
  • Day's range: 110.733 – 110.847
  • 52 wk range: 107.33 – 115.62

In the Asian trading session, the USD/JPY currency pair kept a key support level of 110.400, which caused the bullish sentiment. At the moment, the price is testing a round level of 111.000. The positions must be opened from these marks. A further correction of the trading instrument is possible. We recommend paying attention to the news background and the yield of US government bonds.

The news feed on the economy of Japan is rather calm.

USD/JPY

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

The MACD histogram has begun to rise and moved to the positive zone, which indicates a correction of the USD/JPY currency pair.

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

Trading recommendations
  • Support levels: 110.400, 110.000
  • Resistance levels: 111.000, 111.600

If the price fixes above the round level of 111.000, the correction of the USD/JPY currency pair is expected. The movement is tending to 111.500-111.600.

Alternatively, USD/JPY may drop to the level of 110.400-110.250.

by JustForex, 2018.01.17

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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