The Analytical Overview of the Main Currency Pairs on 2017.08.01

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17459
  • Open: 1.18410
  • % chg. over the last day: +0.63
  • Day's range: 1.18099 – 1.18440
  • 52 wk range: 1.0339 – 1.1845

Yesterday there was a significant demand for the euro. The growth of the EUR/USD quotations exceeded 90 points. This is due to the publication of an optimistic report on inflation and a decrease in the unemployment rate in the euro area to 9.1% (minimum since 2009). The currency found resistance at 1.18400. The 1.17600 mark is already a "mirror" support. We expect important economic reports from the EU and the US.

The economic calendar on 2017.08.01:

  • - The index of business activity in the manufacturing sector of Germany at 10:55 (GMT+3:00);
  • - A report on the German labor market at 10:55 (GMT+3:00);
  • - Preliminary data on the GDP of the Eurozone at 12:00 (GMT+3:00);
  • - The index of business activity in the manufacturing sector of the US from ISM at 17:00 (GMT+3:00).
EUR/USD

The signals of the indicators are ambiguous. The price is above 50 MA and 200 MA, which indicates the power of buyers.

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals a correction of the EUR/USD currency pair.

Trading recommendations
  • Support levels: 1.17600, 1.16500
  • Resistance levels: 1.18400

If the price fixes above the local resistance of 1.18400, further growth of the EUR/USD quotations is possible. The movement is tending potentially to 1.18750-1.19000.

Alternative option. If the statistics from the US is positive, a correction to the "mirror" support level of 1.17600 may develop on the EUR/USD currency pair.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31183
  • Open: 1.32135
  • % chg. over the last day: +0.40
  • Day's range: 1.31895 – 1.32347
  • 52 wk range: 1.1450 – 1.3447

Yesterday, the bullish sentiment prevailed on GBP/USD. The pound added more than 100 points. The currency overcame the round level of 1.32000. The 1.31500 mark is already a "mirror" support. At the moment, the technical pattern is ambiguous. We are waiting for statistics from the UK.

At 11:30 (GMT+3:00) the index of business activity in the manufacturing sector of Britain will be published.

GBP/USD

The GBP/USD quotes have fixed above 50 MA and 200 MA, which indicates 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 below the %D line, which signals a correction on the GBP/USD currency pair.

Trading recommendations
  • Support levels: 1.31500, 1.31000
  • Resistance levels: 1.32250

If the statistics from the UK turns out to be positive, a further growth of GBP/USD is possible. The movement is tending to 1.32500-1.32750.

An alternative may be the correction of GBP/USD to the level of 1.31500.

The USD/CAD currerncy pair

Technical indicators of the currency pair:
  • Prev Open: 1.24322
  • Open: 1.24693
  • % chg. over the last day: +0.36
  • Day's range: 1.24589 – 1.25127
  • 52 wk range: 1.2520 – 1.3795

At the moment, the technical pattern on USD/CAD is ambiguous. The currency is in a sideways trend. The following key levels of support and resistance can be identified: 1.24500 and 1.25200, respectively. We recommend opening positions from these marks. The Canadian dollar is supported by a positive dynamics on the "black gold" market.

It is necessary to pay attention to statistics from the USA.

USD/CAD

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

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator has reached the oversold zone, the %K line is below the %D line, which gives a weak signal for sale.

Trading recommendations
  • Support levels: 1.24500
  • Resistance levels: 1.25200, 1.25700

If the statistics from the US is positive, a correction may develop on the USD/CAD currency pair. The target movement level is 1.25200-1.25700.

An alternative may be a downward trend. The movement is tending potentially to the round level of 1.24000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.605
  • Open: 110.246
  • % chg. over the last day: -0.14
  • Day's range: 110.002 – 110.419
  • 52 wk range: 99.53 – 118.67

On the USD/JPY currency pair, the bearish sentiment is still prevailing. At the moment, the price is testing a "mirror" resistance of 110.350. The nearest support is the round level of 110.000. The positions must be opened from these marks. We recommend paying attention to the US government bonds yield.

There are no important economic reports from Japan today.

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 no signals at the moment.

Trading recommendations
  • Support levels: 110.000
  • Resistance levels: 110.350, 110.900

If the price is fixed below the round level of 110.000, we recommend you to look for entry points to the market to open short positions. The movement is tending to 109.500.

Alternative option. If the USD/JPY quotes overcome the level of 110.350, it is necessary to consider purchases. The target movement level is 110.900.

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.