The Analytical Overview of the Main Currency Pairs on 2018.05.24

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17786
  • Open: 1.16951
  • % chg. over the last day: -0.67
  • Day’s range: 1.16951 – 1.17068
  • 52 wk range: 1.0571 – 1.2557

During yesterday's trading session, the EUR/USD currency pair reached a five-month low. Quotes fell by almost 100 points. Weak data on business activity in Germany and the Eurozone put pressure on euro. In the near future, technical correction is not ruled out. The US dollar moved away from local highs after the publication of the FOMC minutes. At the moment, the key support and resistance levels are 1.17000 and 1.17500, respectively. We recommend opening positions from these marks. Investors are waiting for the account of the ECB last meeting.

The news feed on 2018.05.24:
  • – Publication of the ECB account on monetary policy at 14:30 (GMT+3:00);
  • – Existing home sales in the US at 17:00 (GMT+3:00).
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 overbought zone, the %K line is above the %D line, which gives a weak signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.17000, 1.16500
  • Resistance levels: 1.17500, 1.18000, 1.18500

If the price fixes below the round level of 1.17000, further decrease of the EUR/USD currency pair is expected. The target movement level is 1.16700-1.16500.

An alternative may be the EUR/USD quotes correction to the level of 1.17750-1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34254
  • Open: 1.33349
  • % chg. over the last day: -0.53
  • Day’s range: 1.33345 – 1.33598
  • 52 wk range: 1.2361 – 1.4345

Yesterday, there were aggressive sales on the GBP/USD currency pair. Quotes fell by more than 100 points. The British pound was under pressure after it became known that in April the consumer price index in the UK fell to 2.4% (year-on-year) instead of the forecasted value of 2.5%. At the moment, the key trading range is 1.33400-1.33900. In the near future, technical correction is not ruled out. We recommend opening positions from the key support and resistance levels.

The news feed on 2018.05.24:
  • – Report on retail sales in the UK at 11:30 (GMT+3:00).
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 crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.33400, 1.33000
  • Resistance levels: 1.33900, 1.34300, 1.34800

If the price fixes below the support level of 1.33400, further decline in the GBP/USD quotes is expected. The movement is tending potentially to 1.33000-1.32800.

Alternative option. If the price fixes above the resistance level of 1.33900, it is necessary to consider purchases of GBP/USD. The target movement level is 1.34300-1.34500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28182
  • Open: 1.28277
  • % chg. over the last day: +0.16
  • Day’s range: 1.28447 – 1.28617
  • 52 wk range: 1.2059 – 1.3795

Yesterday, there was a variety of trends on the USD/CAD currency pair. At the moment, the technical pattern is ambiguous. Investors expect additional drivers. We recommend paying attention to the dynamics of oil quotes. The key support and resistance levels are 1.28350 and 1.28700, respectively. The positions should be opened from these marks.

The news feed on the economy of Canada is calm.

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 at the moment.

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: 1.28350, 1.28000, 1.27600
  • Resistance levels: 1.28700, 1.29000

If the price fixes below the support level of 1.28350, we recommend considering sales of USD/CAD. The target movement level is 1.28000-1.27600.

Alternative option. If the price fixes above the resistance level of 1.28700, the USD/CAD quotes are expected to rise. The movement is tending potentially to 1.29000-1.29300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.913
  • Open: 110.059
  • % chg. over the last day: -0.77
  • Day’s range: 109.612 – 109.631
  • 52 wk range: 104.56 – 114.74

There are aggressive sales on the USD/JPY currency pair. The demand for safe assets has grown significantly. During yesterday's and today's trading sessions, the USD/JPY quotes fell by almost 150 points. A further decline in the USD/JPY currency pair is not excluded. At the moment, the key support and resistance levels are: 109.450 and 109.800, respectively. The positions should be opened from these marks.

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

USD/JPY

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/JPY.

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

Trading recommendations
  • Support levels: 109.450, 109.200
  • Resistance levels: 109.800, 110.300, 110.700

If the price fixes below the support level of 109.450, further decrease of the USD/JPY currency pair is expected. The movement is tending potentially to 109.200-108.800.

Alternative option. If the price fixes above the level of 109.800, we recommend considering purchases of USD/JPY. The movement is tending potentially 110.300-110.500.

by JustForex, 2018.05.24

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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