The Analytical Overview of the Main Currency Pairs on 2018.02.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23366
  • Open: 1.22830
  • % chg. over the last day: -0.46
  • Day's range: 1.22697 – 1.22738
  • 52 wk range: 1.0492 – 1.2537

Yesterday, EUR/USD decreased against the US dollar strengthening after the publication of the Fed January meeting report. The report indicated an improvement in the US economy and a possible fast increase in the interest rates. At the moment, the trading instrument is consolidating in the range of 1.22600-1.23000. We recommend opening positions from the key support and resistance levels. Demand for the American currency is still at a fairly high level.

The news feed on 2018.02.22:

  • - IFO business climate index in Germany at 11:00 (GMT+2:00);
    - Report on the last ECB monetary policy meeting at 14:30 (GMT+2:00).
EUR/USD

The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

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

Trading recommendations
  • Support levels: 1.22600, 1.22200, 1.22000
  • Resistance levels: 1.23000, 1.23400, 1.23800

If the EUR/USD currency pair fixes below 1.22600, we recommend you to consider sales. The movement is tending potentially to the round level of 1.22000.

Alternative option. If the EUR/USD quotes fix above resistance level of 1.23000, we recommend looking for entry points in the market to open long positions. The movement is tending potentially to 1.23400-1.23800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39953
  • Open: 1.39167
  • % chg. over the last day: -0.61
  • Day's range: 1.38818 – 1.38861
  • 52 wk range: 1.2106 – 1.4345

Yesterday, an ambiguous report on the UK labor market was published. At the moment, there is a bearish sentiment on the GBP/USD currency pair. The FOMC reports support the demand for the US dollar. The key support and resistance levels are: 1.38600 and 1.39000 respectively. The positions should be opened from these marks. Investors expect important statistics on the UK economy.

The news feed on 2018.02.22:

  • - The UK GDP data at 11:30 (GMT+2:00).
GBP/USD

The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

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

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

Trading recommendations
  • Support levels: 1.38600, 1.38200, 1.37700
  • Resistance levels: 1.39000, 1.39600, 1.40200

If the price fixes below the support level of 1.38700, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 1.38200-1.38000.

An alternative is the growth of the quotes to 1.39600-1.39800.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26473
  • Open: 1.27013
  • % chg. over the last day: +0.43
  • Day's range: 1.26983 – 1.27130
  • 52 wk range: 1.2059 – 1.3795

Yesterday, there was a bullish sentiment on the USD/CAD currency pair against the US dollar strengthening. At the moment, the key support and resistance levels are 1.26800-1.27100. We recommend paying attention to the report on retail sales in Canada, as well as on the oil quotes movement. Positions must be opened from the key levels.

At 15:30 (GMT+2:00) a report on retail sales in Canada will be published.

USD/CAD

The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the growth of the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.26800, 1.26400, 1.26000
  • Resistance levels: 1.27100, 1.27300, 1.27000

If the USD/CAD quotes fix above the 1.27100 mark, we recommend looking for entry points to open long positions. The movement is tending potentially to 1.27500-1.27750.

Alternative option. If the price fixes below the support level of 1.26800, the correction of quotes to the level of 1.26400-1.26000 is expected.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.326
  • Open: 107.762
  • % chg. over the last day: +0.23
  • Day's range: 107.242 – 107.483
  • 52 wk range: 107.33 – 115.51

During yesterday's trading, there was a variety of trends on the USD/JPY currency pair. At the moment, the technical pattern is ambiguous. Local support and resistance levels are: 107.100 and 107.500, respectively. The USD/JPY quotes have the potential for further growth. We recommend you to pay attention to the 10-year US government bonds yield. Positions should be opened from the key levels.

Today, the news feed on the Japanese economy is calm.

USD/JPY

Indicators don’t give accurate signals. The price crossed 50 MA and 200 MA.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 107.100, 106.700, 106.200
  • Resistance levels: 107.500, 107.900, 108.400

If the quotes fix above the 107.500 mark, it is necessary to consider purchases of USD/JPY. The movement is tending potentially to 107.900-108.100.

If the price fixes below the support level of 107.100, we recommend looking for entry points to the market to open short positions. The target movement level is 106.700-106.500.

by JustForex, 2018.02.22

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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