The Analytical Overview of the Main Currency Pairs on 2018.10.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14732
  • Open: 1.15147
  • % chg. over the last day: +0.34
  • Day's range: 1.14972 – 1.15197
  • 52 wk range: 1.0571 – 1.2557

Yesterday, the EUR/USD quotes moved away from local lows. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating near the “mirror” resistance of 1.15150. The key support is the 1.14650 mark. Investors took a wait-and-see attitude before the publication of report on the US labor market. We recommend paying attention to the difference between the actual and forecasted values. Positions should be opened from the key levels.

At 15:30 (GMT+3:00) we expect statistics on the US labor market.

EUR/USD

Indicators do not send accurate signals: the price is testing 50 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator has started moving out of the oversold zone, the %K line is above the %D line, which gives a signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.14650, 1.14250, 1.14000
  • Resistance levels: 1.15150, 1.15650, 1.15900

If the price fixes above the resistance level of 1.15150, the EUR/USD quotes are expected to recover. The movement is tending to 1.15750-1.16000.

An alternative may be a further decrease in the EUR/USD currency pair to the level of 1.14500-1.14250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29363
  • Open: 1.30190
  • % chg. over the last day: +0.63
  • Day's range: 1.30031 – 1.30594
  • 52 wk range: 1.2361 – 1.4345

The GBP/USD currency pair has begun to recover. Yesterday, the growth of quotes exceeded 80 points. At the moment, the trading instrument is consolidating. Financial market participants expect a report on the US labor market. The key support and resistance levels are 1.30000 and 1.30600, respectively. Positions should be opened from these marks.

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

GBP/USD

The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is in the positive zone and continues to rise, which indicates the growth of the GBP/USD currency pair.

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

Trading recommendations
  • Support levels: 1.30000, 1.29400
  • Resistance levels: 1.30600, 1.31000, 1.31500

If the price fixes above the resistance level of 1.30600, further correction of the GBP/USD quotes is expected. The movement is tending to 1.31000-1.31300.

An alternative may be the decrease of the GBP/USD currency pair to the level of 1.29750-1.29500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28656
  • Open: 1.29207
  • % chg. over the last day: +0.40
  • Day's range: 1.29157 – 1.29353
  • 52 wk range: 1.2059 – 1.3795

The USD/CAD currency pair continues to show positive dynamics. Yesterday, the Canadian dollar weakened against the US dollar by more than 60 points. Weak statistics on the Ivey purchasing managers' index in Canada put pressure on Loonie. At the moment, the trading instrument is consolidating in the range of 1.29000-1.29400. Investors expect reports on labor markets of the US and Canada. Positions should be opened from the key levels.

At 15:30 (GMT+3:00) statistics on the labor market will be published in Canada.

USD/CAD

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

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

Stochastic Oscillator has started moving out of the overbought zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.29000, 1.28600, 1.28400
  • Resistance levels: 1.29400, 1.29700, 1.30000

If the price fixes above the resistance level of 1.29400, further growth of the USD/CAD currency pair is expected. The movement is tending to 1.29700-1.30000.

Alternative option. If the price fixes below the round level of 1.29000, it is necessary to consider sales of USD/CAD. The movement is tending to 1.28600-1.28400.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 114.503
  • Open: 113.868
  • % chg. over the last day: -0.55
  • Day's range: 113.786 – 114.101
  • 52 wk range: 104.56 – 114.74

Yesterday, sales prevailed on the USD/JPY currency pair. Quotes moved away from annual highs and updated local extremes. At the moment, the trading instrument is moving in the flat. Investors expect labor statistics from the United States. The key support and resistance levels are 113.650 and 114.000, respectively. The USD/JPY currency pair has the potential for further correction. Positions should be opened from the key levels.

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

USD/JPY

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which indicates the bearish sentiment.

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

Trading recommendations
  • Support levels: 113.650, 113.300, 113.000
  • Resistance levels: 114.000, 114.200, 114.500

If the price fixes below the support level of 113.650, further correction of the USD/JPY currency pair is expected. The movement is tending to 113.300-113.000.

An alternative may be the growth of the USD/JPY quotes to the level of 114.250-114.500.

by JustForex, 2018.10.05

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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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