The Analytical Overview of the Main Currency Pairs on 2018.05.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19872
  • Open: 1.19516
  • % chg. over the last day: -0.04
  • Day's range: 1.19294 – 1.19406
  • 52 wk range: 1.0571 – 1.2557

On Friday, there was high trading activity on the currency majors. The US published a rather weak report on the labor market. At the same time, the dollar index (#DX) closed the trading session in the positive zone. At the moment, the technical pattern on the EUR/USD currency pair is ambiguous. Quotes are in a sideways trend. In the near future, a correction movement may develop. Local support and resistance levels are: 1.19200 and 1.19600, respectively. We recommend opening positions from these marks.

Today, the news feed on the US economy and the Eurozone is calm.

EUR/USD

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

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell EUR/USD.

Stochastic Oscillator is located near the oversold zone, the %K line is below the %D line, which gives a weak signal to sell EUR/USD.

Trading recommendations
  • Support levels: 1.19200, 1.18800
  • Resistance levels: 1.19600, 1.20000, 1.20600

If the price fixes below the support of 1.19200, a further decline in the EUR/USD quotes is expected. The movement is tending potentially to 1.18800-1.18600.

Alternative option. If the price fixes above the resistance level of 1.19600, it is necessary to consider purchases of EUR/USD. The target movement level is 1.20000-1.20200.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35732
  • Open: 1.35327
  • % chg. over the last day: -0.01
  • Day's range: 1.35297 – 1.35363
  • 52 wk range: 1.2361– 1.4345

The technical pattern is still ambiguous on the GBP/USD currency pair. The trading instrument is moving in flat. Financial market participants expect additional drivers. The main event this week will be the meeting of the Bank of England. At the moment, the local support and resistance levels are 1.35150 and 1.35700, respectively. Positions must be opened from these levels. In the near future, we do not exclude the GBP/USD quotes correction after a significant decline in the past three weeks.

The news feed on the UK economy is calm.

GBP/USD

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

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 located in the neutral zone, the %K line is below the %D line, which also indicates a decrease in the GBP/USD quotes.

Trading recommendations
  • Support levels: 1.35150, 1.34800
  • Resistance levels: 1.35700, 1.36550, 1.37500

If the price fixes below the support level of 1.35150, the GBP/USD quotes are expected to decline. The movement is tending potentially to 1.34800-1.34600.

An alternative may be the GBP/USD currency pair growth to 1.36400-1.36600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28460
  • Open: 1.28455
  • % chg. over the last day: -0.01
  • Day's range: 1.28454 – 1.28543
  • 52 wk range: 1.2059 – 1.3795

The technical pattern on the USD/CAD currency pair is still ambiguous. The trading instrument is in a sideways trend. At the moment, the USD/CAD quotes are consolidating in the range of 1.28500-1.28700. The news feed is calm, so we recommend paying attention to the movement of oil quotes. Positions need to be opened from the key support and resistance levels.

Today, important economic reports from Canada are not expected to be published.

USD/CAD

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

The MACD histogram is near the 0 mark. There are no signals.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals to buy USD/CAD.

Trading recommendations
  • Support levels: 1.28500, 1.28200, 1.28000
  • Resistance levels: 1.28700, 1.29000, 1.29400

If the price fixes above the resistance of 1.28700, the USD/CAD quotes are expected to rise. The movement is tending potentially to 1.29000-1.29400.

Alternative option. If the price fixes below the support level of 1.28500, it is necessary to consider sales of USD/CAD. The movement is tending potentially to the round level of 1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.188
  • Open: 109.108
  • % chg. over the last day: -0.06
  • Day's range: 109.211 – 109.330
  • 52 wk range: 104.56 – 114.74

On Friday, there was a variety of trends on the USD/JPY currency pair. At the moment, the technical pattern is ambiguous. Investors expect additional drivers. Local levels of support and resistance are: 109,000 and 109,300, respectively. The positions must be opened from these marks. The trading instrument has the potential for further correction.

The news feed on Japan's economy is calm.

USD/JPY

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 109.000, 108.750, 108.400
  • Resistance levels: 109.300, 109.550, 109.850

If the price fixes above a mark of 109.300, the USD/JPY currency pair is expected to grow. The movement is tending potentially to 109.550-109.850.

Alternative option. If the price fixes below the round level of 109.000, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 108.750-108.400.

by JustForex, 2018.05.07

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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