The Analytical Overview of the Main Currency Pairs on 2017.06.09

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12544
  • Open: 1.12051
  • % chg. over the last day: -0.38
  • Day's range: 1.11789 – 1.12368
  • 52 wk range: 1.0366 – 1.1616

The ECB kept interest rates at the same level. The regulator raised the forecast for GDP growth in the eurozone to 1.9% this year. At the same time, the Central Bank expects inflation in 2017 at 1.5% compared with the previous value of 1.7%. During yesterday's trading, the drop in the EUR/USD quotations exceeded 50 points. At the moment, the bearish sentiment is prevailing. The currency tests a round level of 1.12000.

Today, the publication of important economic reports from the EU is not planned.

EUR/USD

Indicators point to the power of sellers. The EUR/USD quotes have fixed below 50 MA and 200 MA.

The MACD histogram is in the negative area, 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 a downward trend on EUR/USD.

Trading recommendations
  • Support levels: 1.11200
  • Resistance levels: 1.12000, 1.12800

We expect a downward trend in EUR/USD. We recommend considering sales if the price fixes below the level of 1.11800. The movement is tending potentially to the support level of 1.11200.

Alternative option. If the EUR/USD quotes fix above the 1.12250 level, you need to look for entry points in order to open long positions. The target movement level is 1.12800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29517
  • Open: 1.28092
  • % chg. over the last day: -0.06
  • Day's range: 1.26343 – 1.28382
  • 52 wk range: 1.1986 – 1.5020

Parliamentary elections in Britain put considerable pressure on the pound. According to preliminary exit polls, the Conservative Party won 314 seats. To gain a majority of votes in the House of Commons, the party must win 326 seats. These events have increased uncertainty over the issue of Britain's exit from the EU. Today, the drop in GBP/USD quotations exceeded 2%. At the moment, the key trading range is 1.26750-1.27600.

Economic reports from Britain:
  • – The production volume in the manufacturing industry – 11:30 (GMT+3:00);
  • – The balance of visible trade – 11:30 (GMT+3:00).
GBP/USD

Indicators point to the strength of sellers. The price is below 50 MA and 200 MA.

The MACD histogram has fixed in the negative zone and below the signal line, which signals a drop in GBP/USD.

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

Trading recommendations
  • Support levels: 1.26750
  • Resistance levels: 1.27600, 1.28350, 1.29000

If the price consolidates below the local support 1.26750, the downward trend in GBP/USD may continue. The movement is tending potentially to the round level of 1.26000. When tracking the position, it is better to use a trailing stop.

Alternative option. If the GBP/USD quotes fix above 1.27600, a correction may occur in GBP/USD. The immediate goal for profit-taking is 1.28350.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35105
  • Open: 1.35019
  • % chg. over the last day: -0.01
  • Days' range: 1.35006 – 1.35382
  • 52 wk range: 1.2458 – 1.4692

Yesterday, high trading activity was observed on USD/CAD. At the same time, there has been no significant change in the Canadian dollar rate. At the moment, the currency is testing the local resistance of 1.35200. The round level of 1.35000 is the nearest support. We are expecting a report on the labor market in Canada.

Statistics on the economy of Canada:
  • – The changes in employment – 15:30 (GMT+3:00);
  • – The unemployment rate – 15:30 (GMT+3:00).
USD/CAD

The price has fixed above 50 MA and 200 MA, which indicates the growth of the USD/CAD quotations.

The MACD histogram is in the positive zone and continues to rise, which also signals the purchase of USD/CAD.

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

Trading recommendations
  • Support levels: 1.35000, 1.34700, 1.34350
  • Resistance levels: 1.35200

If the report on the labor market in Canada proves to be weak, the upward trend in USD/CAD may continue. The movement is tending potentially to 1.35750.

An alternative may be a downward trend. The target movement level is 1.34700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.812
  • Open: 109.856
  • % chg. over the last day: +0.17
  • Day's range: 109.719 – 110.472
  • 52 wk range: 99.08 – 123.69

The last trading session the corrective movement is observed on USD/JPY. Today, the growth of the quotations exceeded 50 points. At the moment, the currency is testing resistance at 110.400. The dollar is supported by the positive dynamics of the US government bonds yield.

The news background on the economy of Japan is calm today.

USD/JPY

The price is close to 200 MA, which acts as a strong dynamic resistance.

The MACD histogram is located in the positive area and above the signal line, which indicates the bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 109.850, 109.250
  • Resistance levels: 110.400, 111.000

We believe that the correction on USD/JPY may continue. We recommend looking for entry points to the market in order to open long positions if the price fixes above the level of 110.400. The movement is tending potentially to the round level of 111.000.

Alternative option. If the price consolidates below the support level of 109.850, the bearish sentiment may prevail on the USD/JPY currency pair. The closest goal for profit taking is the mark of 109.250.

by JustForex, 2017.06.09

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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.