The Analytical Overview of the Main Currency Pairs on 2017.07.31

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.16760
  • Open: 1.17459
  • % chg. over the last day: +0.64
  • Day's range: 1.17223 – 1.17614
  • 52 wk range: 1.0366 – 1.1777

On Friday, July 28, the US dollar weakened against the majors against the backdrop of the mixed GDP statistics. The dollar index (#DX) closed in the negative zone (-0.65%). In the Asian trading session, the EUR/USD currency pair held the local resistance of 1.17600, which caused a correction. The nearest support is the round level of 1.17000. We expect important economic reports from the Eurozone and the US.

News background on 2017.07.31:

  • - The Eurozone consumer price index at 12:00 (GMT+3:00);
  • - The index of pending sales in the US real estate market at 17:00 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals. The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to decline and fixed below the signal line, which signals a correction of the EUR/USD currency pair.

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

Trading recommendations
  • Support levels: 1.17000, 1.16500
  • Resistance levels: 1.17600

If the price fixes above the local resistance of 1.17600, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to the round level of 1.18000.

Alternative option. If the EUR/USD quotes overcome the level of 1.17000, correction may develop. The movement is tending to the support level of 1.16500.

When tracking a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30585
  • Open: 1.31183
  • % chg. over the last day: +0.52
  • Day's range: 1.31056 – 1.31499
  • 52 wk range: 1.1450 – 1.3447

On Friday, the bullish sentiment prevailed on GBP/USD. At the moment, the currency has formed a double top. The key trading range is 1.31000-1.31500. In the near future, a technical correction is not excluded. We recommend you to pay attention to statistics from the USA. Positions must be opened from the key levels.

There are no important economic reports from the UK today.

GBP/USD

The GBP/USD quotes have fixed above 50 MA and 200 MA, which signals the power of buyers

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also indicates the growth of GBP/USD.

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

If the statistics from the US turns out to be positive, a correction to the mark of 1.30800-1.30600 may develop on the GBP/USD currency pair.

An alternative may be further growth in GBP/USD. The movement is tending potentially to 1.31500-1.31750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25500
  • Open: 1.24322
  • % chg. over the last day: -0.95
  • Day's range: 1.24252 – 1.24870
  • 52 wk range: 1.2520 – 1.3795

During Friday trading on USD/CAD, aggressive sales were observed. The Canadian dollar added more than 100 points. Support was provided by positive data on Canada's GDP. In May, the country's economic growth was 0.6% compared with the forecasted value of 0.2%. Demand for Canada's currency is supported by a significant recovery in the oil quotes.

We recommend paying attention to the news line from the USA.

USD/CAD

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

The MACD histogram has fixed 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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.24150
  • Resistance levels: 1.24850, 1.25350

If the statistics from the US is positive, a correction movement towards the resistance level 1.25350 may develop on the USD/CAD currency pair.

An alternative may be a downward trend on USD/CAD to around 1.24150.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.245
  • Open: 110.605
  • % chg. over the last day: -0.52
  • Day's range: 110.307 – 110.774
  • 52 wk range: 99.53 – 118.67

On Friday, sales prevailed on USD/JPY. The yen has updated the local minima. The currency found support at around 110.350. Level 110.900 is already a "mirror" resistance. Today positions must be opened from these marks. We recommend paying attention to the US government bonds yield.

The news background on Japan's economy is calm.

USD/JPY

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

The MACD histogram has fixed 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 has crossed the %D line. There are currently no signals.

Trading recommendations
  • Support levels: 110.350
  • Resistance levels: 110.900, 111.300

If the price is fixed above the "mirror" resistance of 110.900, a correction may develop on the USD/JPY currency pair. The closest target for fixing profits is the mark of 111.300.

Alternative option. If the statistics from the US turns out to be weak, the downward trend in USD/JPY may continue. The movement is tending to 110.350-110.000.

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.