The Analytical Overview of the Main Currency Pairs on 2017.07.13

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14647
  • Open: 1.14121
  • % chg. over the last day: -0.43
  • Day's range: 1.14113 – 1.14557
  • 52 wk range: 1.0366 – 1.1616

At yesterday's press conference, the head of the Fed, Yellen, said that the gradual tightening of the monetary policy would be justified. In the near future, the regulator intends to start implementing a program to reduce assets on its balance sheet. Nevertheless, the chairman of the Central Bank did not tell the specified terms of raising the key interest rate. The main factor is the level of inflation, which at the moment is below the target level. We expect economic reports from the USA.

The economic calendar on 2017.07.13:
  • – The number of initial claims for unemployment benefits in the US – 15:30 (GMT+3:00);
  • – The producer price index in the US – 15:30 (GMT+3:00);
  • – Speech by the Chairman of the FRS – 17:00 (GMT+3:00).
EUR/USD

The EUR/USD quotes have fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to rise and moved to the positive zone, which signals an increase in the currency EUR/USD pair.

Stochastic Oscillator has begun to exit the overbought zone, the %K line is below the %D line, which sends a signal to sell EUR/USD.

Trading recommendations
  • Support levels: 1.14400, 1.14000
  • Resistance levels: 1.14850

If the statistics from the US are positive, we recommend considering sales of EUR/USD. The immediate goal for profit taking is the round level of 1.14000.

An alternative may be the growth of the EUR/USD currency pair to the resistance level of 1.14850.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28453
  • Open: 1.28799
  • % chg. over the last day: +0.34
  • Day's range: 1.28489 – 1.29518
  • 52 wk range: 1.1986 – 1.5020

During yesterday's trading on GBP/USD, purchases prevailed. This is due to the release of a positive report on the labor market in the UK. Today, the pound rally has continued. At the moment, the price is testing the resistance at 1.29500. Round level 1.29000 is already a "mirror" support. The technical pattern indicates the possibility of the further GBP/USD growth.

The news background on the UK economy is calm today.

GBP/USD

Indicators point to the power of buyers. The price is above 50 MA and 200 MA.

The MACD histogram is located in the positive area and continues to rise, which signals a further growth in the GBP/USD currency pair.

Stochastic Oscillator has fixed near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.

Trading recommendations
  • Support levels: 1.29000, 1.28600
  • Resistance levels: 1.29500, 1.30000

We believe that the upward trend in GBP/USD may continue. If the price fixes above the resistance level of 1.29500, we recommend looking for entry points to the market in order to open long positions. The movement is tending potentially to 1.30000. When following a position, one should use a trailing stop.

The USD/CAD currecny pair

Technical indicators of the currency pair:
  • Prev Open: 1.29121
  • Open: 1.27460
  • % chg. over the last day: -1.27
  • Day's range: 1.27240 – 1.27653
  • 52 wk range: 1.2458 – 1.4692

The Bank of Canada, as expected, tightened the monetary policy. The key interest rate was increased by 25 basis points to 0.75%. The regulator said that the slowdown in inflation was temporary and pointed to positive changes in the country's economy. These events caused a significant demand for the currency of Canada. The USD/CAD quotes fell by more than 200 points. The currency found support at 1.26800. The local resistance is the mark of 1.27700.

The news background on Canada's economy is calm today. At 15:30 (GMT+3:00), the price index for new housing will be published.

USD/CAD

At the moment, the indicators do not send accurate signals. The USD/CAD quotes have fixed below 50 MA and 200 MA.

The MACD histogram is located in the negative area, but above the signal line, which gives a weak signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a correction on USD/CAD.

Trading recommendations
  • Support levels: 1.26800
  • Resistance levels: 1.27700, 1.28600

If the price fixes below 1.27300, the downward trend in USD/CAD may continue. The immediate goal for profit-taking is 1.26800.

Alternative option. In the near future, we do not exclude a technical correction. If the price fixes above the local resistance of 1.27700, we recommend considering buying USD/CAD. The movement is tending potentially to 1.28000-1.28250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev open: 114.021
  • Open: 113.130
  • % chg. over the last day: -0.54
  • Day's range: 112.858 – 113.527
  • 52 wk range: 99.08 – 123.69

Yesterday correction on the USD/JPY currency pair continued. In the market, there were bearish sentiments. The yen rose against the US dollar by more than 75 points. At the moment, the price is testing the round level of 113.000. We recommend paying attention to the US government bonds yield.

There is no important news on the economy of Japan today.

USD/JPY

The price is below 50 MA and 200 MA, which signals the power of the sellers.

The MACD histogram is located in the negative zone and continues to decline, which indicates a further drop in the USD/JPY quotes.

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

Trading recommendations
  • Support levels: 113.000, 112.500
  • Resistance levels: 113.750, 114.450

We expect a further correction on the USD/JPY currency pair. If the price fixes below the round level of 113.000, we recommend you to look for entry points to the market to open short positions. The movement is tending potentially to 112.500.

by JustForex, 2017.07.13

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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.