The Analytical Overview of the Main Currency Pairs on 2017.10.12

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18081
  • Open: 1.18585
  • % chg. over the last day: +0.49
  • Day's range: 1.18576 – 1.18798
  • 52 wk range: 1.0341 – 1.2069

Since the beginning of the current week, the EUR/USD currency pair has shown a pronounced upward trend. Yesterday, investors focused on the publication of the FOMC protocols. Most Fed's officials believe that another increase in interest rates in 2017 will be appropriate. At the same time, the regulator is concerned about the low level of inflation in the country. Some representatives of the Central Bank believe that one should not rush to raise rates. The probability of tightening the Fed's monetary policy this year fell to 81.7%. At the moment the EUR/USD quotes have reached the key resistance level of 1.18750. In the near future, a technical correction is possible.

The news background on 2017.10.12:

  • - The producer price index in the US at 15:30 (GMT+3:00);
  • - The number of initial applications for unemployment benefits in the US at 15:30 (GMT+3:00).

At 17:30 (GMT+3:00) the ECB head will speak.

EUR/USD

The signals of the indicators are different. The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

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

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

Trading recommendations
  • Support levels: 1.18500, 1.18250, 1.18000
  • Resistance levels: 1.18750, 1.19000

If the price fixes above the key resistance of 1.18750, we expect the further growth of the EUR/USD currency pair. The target movement level is 1.19000-1.19250.

Alternative option. If the price fixes below the level of 1.18500, we expect a correction of the EUR/USD quotes. The movement is tending to 1.18250-1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32018
  • Open: 1.32177
  • % chg. over the last day: +0.27
  • Day's range: 1.32176 – 1.32650
  • 52 wk range: 1.1450 – 1.3618

On the GBP/USD currency pair, the bullish sentiment still prevails. At the moment, the following key levels of support and resistance can be identified: 1.32250 and 1.32750, respectively. Growth in the government bonds yield in the UK supports the pound. We expect economic reports from the USA. We recommend opening positions from the key levels.

The news background on the UK economy is calm today.

GBP/USD

The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is located in the positive zone and above the signal line, indicating a bullish sentiment on GBP/USD.

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

Trading recommendations
  • Support levels: 1.32250, 1.31750
  • Resistance levels: 1.32750, 1.33250

If the statistics on the US economy is optimistic, we recommend considering selling GBP/USD. The target movement level is 1.31750.

An alternative may be the further growth of the GBP/USD currency pair to the level of 1.33250.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25155
  • Open: 1.24558
  • % chg. over the last day: -0.29
  • Day's range: 1.24328 – 1.24610
  • 52-недельный диапазон: 1.2059 – 1.3795

At the moment, the bearish sentiment is prevailing on the USD/CAD currency pair. Yesterday, the Canadian dollar rose against the US dollar by more than 60 points. The trading instrument found support at 1.24350. The mark 1.24850 is already a "mirror" resistance. Investors expect economic reports from the United States.

At 15:30 (GMT+3:00) the price index for new housing in Canada will be released.

USD/CAD

The USD/CAD quotes have fixed below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram is in the negative zone and below the signal line, which indicates a bearish sentiment on USD/CAD.

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

Trading recommendations
  • Support levels: 1.24350, 1.24000
  • Resistance levels: 1.24600, 1.24850, 1.25250

If the statistics from the US turns out to be weak, we expect a further drop in the USD/CAD quotes. The movement is tending potentially to 1.24000-1.23750.

An alternative may be the growth of the USD/CAD currency pair to the "mirror" resistance of 1.24850.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.439
  • Open: 112.489
  • % chg. over the last day: +0.01
  • Day's range: 112.206 – 112.520
  • 52 wk range: 99.53 – 118.67

At the moment, the USD/JPY currency pair is in a sideways trend. The technical pattern is ambiguous. The key levels of support and resistance are still 112.250 and 112.500, respectively. The growth of geopolitical risks between the United States and North Korea supports the demand for a "safe haven" currency. We recommend you to pay attention to the economic reports and the US government bonds yield.

The publication of important economic reports from Japan is not planned.

USD/JPY

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

The MACD histogram has begun to decline and has moved to the negative zone, which signals a bearish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 112.250, 112.000
  • Resistance levels: 112.500, 112.750, 113.150

If the statistics from the US is weak, we recommend you to look for entry points to the market to open short positions. The movement is tending potentially to 112.000-111.750.

An alternative may be the growth of the USD/JPY currency pair to the level of 112.750-113.000.

by JustForex, 2017.10.12

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.