The Analytical Overview of the Main Currency Pairs on 2017.06.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12519
  • Open: 1.12759
  • % chg. over the last day: +0.20
  • Day's range: 1.12600 – 1.12819
  • 52 wk range: 1.0366 – 1.1616

Since the beginning of this week, EUR/USD is in a sideways trend. The key levels of support and resistance are still 1.12400 and 1.12800 respectively. The market is waiting for additional drivers. The attention of investors will be focused on the ECB meeting, which will be held on June 08. At the moment, it's better to open positions from the key levels.

At 12:00 (GMT+3:00) the data on the GDP of the Eurozone will be published.

EUR/USD

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 and continues to rise, which signals an increase in EUR/USD.

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

Trading recommendations
  • Support levels: 1.12400, 1.12000
  • Resistance levels: 1.12800

If the statistics from the Eurozone is positive, the bullish sentiment may prevail on the currency pair. The target movement level is 1.13250-1.13500.

An alternative may be the correction on EUR/USD to the level of 1.12400-1.12250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28955
  • Open: 1.29063
  • % chg. over the last day: +0.06
  • Day's range: 1.28945 – 1.29194
  • 52 wk range: 1.1986 – 1.5020

The attention is focused on elections in the UK, which will be held on June 08. At the moment, the technical pattern is ambiguous on the GBP/USD currency pair. The key trading range is 1.28800-1.29350. We advise you to track the news related to the election race in the UK.

In May, the index of house prices from Halifax increased and amounted to 0.4%. Experts were in view of a decrease of 0.1%.

GBP/USD

Indicators do not send accurate signals. The price crossed 50 MA and 200 MA.

The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are signals at the moment.

Trading recommendations
  • Support levels: 1.28800, 1.28350
  • Resistance levels: 1.29350, 1.29800

We recommend opening positions from the key levels.

If the GBP/USD price falls below 1.28800, we recommend you to look for entry points to open short positions. The movement is tending potentially to 1.28350.

Alternative option. If the price overcomes the local resistance of 1.29350, purchases on the GBP/USD currency pair may prevail. The target movement level is 1.29800.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34669
  • Open: 1.34502
  • % chg. over the last day: -0.13
  • Day's range: 1.34292 – 1.34606
  • 52 wk range: 1.2458 – 1.4692

Yesterday's trading on USD/CAD was very active. At the same time, a unidirectional trend was not observed. Trading ended with a slight strengthening of the Canadian dollar. At the moment, the price is testing the support level of 1.34400. The nearest resistance is at 1.34800. Yesterday, WTI crude oil added more than 1.5% to the price, which supports the Canadian dollar.

At 15:30 (GMT+3:00) the data on building permits in Canada will be released.

USD/CAD

Indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which indicates the bearish sentiment on USD/CAD.

Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/CAD.

Trading recommendations
  • Support levels: 1.34400, 1.34000
  • Resistance levels: 1.34800, 1.35200

We expect a downward trend in USD/CAD. If the price fixes below the support level of 1.34400, we recommend considering sales. The target movement level is 1.34000.

Alternative option. If the USD/CAD quotes are fixed above the resistance level of 1.34800, it is necessary to look for entry points to the market in order to open long positions. The movement is tending potentially to 1.35000-1.35200.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.433
  • Open: 109.380
  • % chg. over the last day: -0.96
  • Day's range: 109.204 – 109.635
  • 52 wk range: 99.08 – 123.69

Yesterday, the bearish sentiment prevailed on USD/JPY. The yen strengthened significantly against the US dollar (by more than 100 points). The currency found support at 109.250. The local resistance is 109.600. The demand for safe assets remains at a fairly high level.

There is no important news from Japan today.

USD/JPY

Indicators signal a continuation of the downward trend. The USD/JPY quotes have fixed below 50 MA and 200 MA.

The MACD histogram is in the negative zone and continues to decline, which gives a signal to sell USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also indicates a drop in USD/JPY.

Trading recommendations
  • Support levels: 109.250
  • Resistance levels: 109.600, 110.300

We believe that the downward trend in USD/JPY may continue. We recommend looking for entry points to the market in order to open short positions if the price fixes below the support level of 109.250. The movement is tending potentially to 108.750. When tracking the position, it is better to use a trailing stop.

Alternative option. If the price overcomes the local resistance of 109.600, a correction may develop on the USD/JPY currency pair. The immediate goal for profit taking is the round level of 110.000.

by JustForex, 2017.06.07

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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.