The Analytical Overview of the Main Currency Pairs on 2018.05.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17671
  • Open: 1.17884
  • % chg. over the last day: +0.10
  • Day’s range: 1.17878 – 1.17949
  • 52 wk range: 1.0571 – 1.2557

During yesterday's trading session, the US dollar moved away from the 5-month high. The EUR/USD quotes rose by almost 70 points. However, euro is under pressure due to political tension in Italy. At the moment, the local support and resistance levels are: 1.17500 and 1.17900, respectively. We recommend opening positions from these marks.

The news feed on the US economy and the Eurozone is calm.

EUR/USD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.17500, 1.17200
  • Resistance levels: 1.17900, 1.18300, 1.18800

If the price fixes below the "mirror" support of 1.17500, the EUR/USD currency pair is expected to decline. The target movement level is 1.17200-1.17000.

Alternative option. If the price fixes above 1.17900, it is necessary to consider purchases of EUR/USD. The movement is tending potentially to 1.18300-1.18500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34599
  • Open: 1.34252
  • % chg. over the last day: -0.31
  • Day’s range: 1.34248 – 1.34350
  • 52 wk range: 1.2361 – 1.4345

The technical pattern on the GBP/USD currency pair is ambiguous. The trading instrument is in a sideways trend. Investors took a wait-and-see position before the inflation report hearings in the UK, which may have a significant impact on the dynamics of the pound's rate. At the moment, the key support and resistance levels are 1.34100 and 1.34500, respectively. We recommend opening positions from these marks.

The news feed on 2018.05.22:
  • – Inflation report hearings in the UK at 12:00 (GMT+3:00).

We also recommend paying attention to the speech by the Bank of England governor Carney.

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 above the %D line, which signals to buy GBP/USD.

Trading recommendations
  • Support levels: 1.34100, 1.33700
  • Resistance levels: 1.34500, 1.35000, 1.35500

If the price fixes below the support level of 1.34100, the GBP/USD quotes are expected to decline. The movement is tending potentially to 1.33700-1.33500.

An alternative may be the growth of the GBP/USD currency pair to 1.35000-1.35200.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28708
  • Open: 1.27835
  • % chg. over the last day: -0.82
  • Day’s range: 1.28707 – 1.28757
  • 52 wk range: 1.2059 – 1.3795

Yesterday, there were aggressive sales on the USD/CAD currency pair. The drop in quotes exceeded 100 points. At the moment, the trading instrument is consolidating. The USD/CAD currency pair has the potential for further decrease. Positive dynamics of oil quotes supports the Canadian dollar. Local support and resistance levels are: 1.27600 and 1.27900, respectively. The positions should be opened from these marks.

The news feed on the economy of Canada is quite calm.

USD/CAD

Indicators point to the power of sellers: the price has fixed below 50 MA and 200 MA.

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 below the %D line, which indicates a decrease in the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.27600, 1.27300
  • Resistance levels: 1.27900, 1.28200, 1.28500

If the price fixes below the support level of 1.27600, we recommend considering sales of USD/CAD. The target movement level is 1.27300-1.27000.

Alternative option. If the price fixes above the resistance level of 1.27900, the USD/CAD quotes correction is expected. The movement is tending potentially to 1.28200-1.28500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.871
  • Open: 111.003
  • % chg. over the last day: +0.23
  • Day’s range: 111.095 – 111.185
  • 52 wk range: 104.56 – 114.74

Last sessions, trading on the USD/JPY currency pair is quite active. However, a unidirectional trend is not observed. At the moment, the technical pattern is ambiguous. The US government bonds yield has moved away from local highs. In the near future, a technical correction is not ruled out. The key support and resistance levels are: 110.900 and 111.200, respectively. The positions should be opened from these marks.

The publication of important economic reports from Japan is not planned.

USD/JPY

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

The MACD histogram began to rise, which indicates the USD/JPY quotes growth.

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

Trading recommendations
  • Support levels: 110.900, 110.600, 110.200
  • Resistance levels: 111.200, 111.450

If the price fixes below the support level of 110.900, the USD/JPY currency pair is expected to decline. The movement is tending potentially to 110.600-110.400.

Alternative option. If the price fixes above the resistance level of 111.200, we recommend considering purchases of USD/JPY. The movement is tending potentially to 110.450-110.700.

by JustForex, 2018.05.22

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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