The Analytical Overview of the Main Currency Pairs on 2018.05.17

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18386
  • Open: 1.18066
  • % chg. over the last day: -0.19
  • Day’s range: 1.17993 – 1.18052
  • 52 wk range: 1.0571 – 1.2557

Yesterday, there was a variety of trends on the EUR/USD currency pair. The US published the ambiguous economic reports. In April, the number of issued building permits dropped by 1.8% to 1.352M. At the same time, the indicator exceeded market expectations of 1.347M. The volume of industrial production increased by 0.7%, which is higher than the forecasted value of +0.5%. At the moment, the key support and resistance levels are: 1.17800 and 1.18300, respectively. We recommend opening positions from these marks.

The news feed on 2018.05.17:
  • - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

We also recommend paying attention to the speeches of the ECB and the FOMC representatives.

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, 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 below the %D line, which signals to sell EUR/USD.

Trading recommendations
  • Support levels: 1.17800, 1.17400
  • Resistance levels: 1.18300, 1.18700, 1.19200

If the price fixes below the support level of 1.17800, the EUR/USD currency pair is expected to decline. The target movement level is 1.17400-1.17200.

Alternative option. If the price fixes above 1.18300, it is necessary to consider purchases of EUR/USD. The movement is tending potentially to 1.18700-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35046
  • Open: 1.35192
  • % chg. over the last day: +0.31
  • Day’s range: 1.34932 – 1.35352
  • 52 wk range: 1.2361 – 1.4345

A variety of trends is observed on the GBP/USD currency pair. A weak report on the UK labor market and concerns about Brexit continue to put pressure on the pound. A trading instrument is tending potentially to decline. At the moment, the key support and resistance levels are 1.35000 and 1.35400, respectively. We recommend opening positions from these marks.

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

GBP/USD

Signals of the indicators are ambiguous: the price crossed 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 GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell GBP/USD.

Trading recommendations
  • Support levels: 1.35000, 1.34600
  • Resistance levels: 1.35400, 1.35800, 1.36200

If the price fixes below the round level of 1.35000, the GBP/USD currency pair is expected to decline. The movement is tending potentially to 1.34600-1.34300.

An alternative may be the GBP/USD quotes growth to 1.35800-1.36000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28689
  • Open: 1.27900
  • % chg. over the last day: -0.70
  • Day’s range: 1.27628 – 1.27750
  • 52 wk range: 1.2059 – 1.3795

Yesterday, the bearish sentiment was observed on the USD/CAD currency pair. Decrease in the USD/CAD quotes counted to 90 points. Such a decline was mostly caused by technical factors. At the moment, the trading instrument is consolidating. In the near future, technical correction is not ruled out. The key trading range is 1.27450-1.27850. Positions should be opened from the key support and resistance levels.

The news feed on Canada economy is calm.

USD/CAD

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 USD/CAD.

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: 1.27450, 1.27000
  • Resistance levels: 1.27850, 1.28300, 1.28700

If the price fixes above 1.27850, the USD/CAD quotes correction is expected. The movement is tending potentially to 1.28300-1.28500.

An alternative may be a further decline in the USD/CAD currency pair to the round level of 1.27000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.295
  • Open: 110.386
  • % chg. over the last day: +0.02
  • Day’s range: 110.445 – 110.609
  • 52 wk range: 104.56 – 114.74

There is an upward trend on the USD/JPY currency pair. The US government bonds yield growth supports the demand for the US currency. At the moment, the trading instrument is testing local resistance of 110.650. A mark of 110.400 is already a "mirror" support. The USD/JPY quotes have the potential for further growth. Positions should be opened from the key levels.

The news feed on Japan economy is calm.

USD/JPY

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

The MACD histogram is in the positive zone and above the signal line, which signals to buy USD/JPY.

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

Trading recommendations
  • Support levels: 110.400, 110.000, 109.600
  • Resistance levels: 110.650, 111.000

If the price fixes above the level of 110.650, further growth of the USD/JPY currency pair is expected. The immediate goal of profit taking is the round level of 111.000.

Alternative option. If the price fixes below the "mirror" support of 110.400, correction movement is expected. The target movement level is 110.000-109.800.

by JustForex, 2018.05.17

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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