The Analytical Overview of the Main Currency Pairs on 2017.10.26

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17599
  • Open: 1.18123
  • % chg. over the last day: +0.50
  • Day's range: 1.18115 – 1.18367
  • 52 wk range: 1.0341 – 1.2069

Today the attention is focused on the ECB press conference at 14:45 (GMT+3:00). It is expected that the regulator will disclose details of the asset purchases reduction program. We recommend you to pay attention to the statements of the Central Bank representatives. At the moment, the following key levels of support and resistance can be identified: 1.18000 and 1.18300. The positions must be opened from these marks.

News background on the US economy for 2017.10.26:

  • - The foreign goods trade balance at 15:30 (GMT+3:00);
  • - The number of initial jobless claims at 15:30 (GMT+3:00);
  • - The index of pending home sales at 17:00 (GMT+3:00).
EUR/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, 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 signals the sale of EUR/USD.

Trading recommendations
  • Support levels: 1.18000, 1.17600, 1.17350
  • Resistance levels: 1.18300, 1.18550, 1.19000

If the price fixes above the local resistance of 1.18300, we recommend considering buying EUR/USD. The movement is tending to the round level of 1.19000.

Alternative option. If the price fixes below 1.18000, you need to look for entry points in the market to open short positions. The target movement level is 1.17600-1.17350.

When tracking positions, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31322
  • Open: 1.32612
  • % chg. over the last day: +1.04
  • Day's range: 1.32350 – 1.32789
  • 52 wk range: 1.1450 – 1.3618

Yesterday aggressive purchases were observed on GBP/USD. The growth of quotations exceeded 1%. The pound was supported by preliminary data on the UK GDP. The National Statistical Office of Great Britain reported that in the third quarter the country's economy grew by 1.5% (year on year). Experts expected the index at 1.4%. At the moment there is a correction of the GBP/USD quotations. The key trading range is 1.32250-1.32750. We recommend opening positions from these marks.

Today, the news background on the UK economy is calm.

GBP/USD

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

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

Stochastic Oscillator is located 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, 1.31600, 1.31200
  • Resistance levels: 1.32750, 1.33200

If the statistics from the US turns out to be weak, we expect further growth of GBP/USD. The target movement level is 1.33200.

An alternative may be the correction of the GBP/USD currency pair to the level of 1.31800-1.31600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26732
  • Open: 1.27930
  • % chg. over the last day: +0.96
  • Day's range: 1.27827 – 1.28099
  • 52 wk range: 1.2059 – 1.3795

The Central Bank of Canada, as expected, left the key interest rate unchanged at 1.00%. The regulator said that it will not hurry with further tightening of the monetary policy. The Canadian dollar appreciably weakened against the US dollar. USD/CAD currency pair has reached a round level of 1.28000. At the moment, the trading instrument is consolidating in a rather narrow range of 1.27800-1.28150. In the near future, we do not rule out a technical correction.

There are no important economic reports from Canada today.

USD/CAD

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

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

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

Trading recommendations
  • Support levels: 1.27800, 1.27150, 1.26250
  • Resistance levels: 1.28150, 1.28500

If the price fixes above the local resistance of 1.28150, a further growth of the USD/CAD quotes is expected. The movement is tending to 1.28500-1.28750.

Alternative option. If the USD/CAD quotes overcome the mark of 1.27800, we expect a corrective movement. The target level of movement is 1.27500-1.27150.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.898
  • Open: 113.735
  • % chg. over the last day: -0.28
  • Day's range: 113.341 – 113.803
  • 52 wk range: 99.53 – 118.67

The technical pattern on USD/JPY is still ambiguous. The trading instrument is still in a sideways trend. At the moment, the key levels of support and resistance are 113.450 and 113.800 respectively. Positions should be opened if the price fixes above/below these markers. We recommend paying attention to economic reports from the USA.

Today, the news background on the Japanese economy is calm.

USD/JPY

Indicators do not send accurate signals. The price has crossed 50 MA.

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals the purchase of USD/JPY.

Trading recommendations
  • Support levels: 113.450, 113.100
  • Resistance levels: 113.800, 114.200

If the statistics from the US turns out to be positive, we recommend considering buying USD/JPY. The movement is tending to 114.200-114.500.

Alternatively, USD/JPY may drop to the level of 113.100-112.750.

by JustForex, 2017.10.26

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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.