The Analytical Overview of the Main Currency Pairs on 2017.07.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14180
  • Open: 1.13617
  • % chg. over the last day: -0.44
  • Day's range: 1.13355 – 1.13773
  • 52 wk range: 1.0366 – 1.1616

Yesterday, the US dollar recovered some of the losses relative to major world currencies. Support was provided by a positive report on business activity in the manufacturing sector of the country. At the moment, the probability of increasing the range of the Fed's key interest rate in December of this year exceeds 50%. The key trading range is 1.13550-1.14000. Financial markets in the US are closed today due to the celebration of Independence Day. Trading activity and volatility can be reduced.

The publication of important economic reports from the Eurozone is not planned today.

EUR/USD

Indicators do not send accurate signals. The price is between 50 MA and 200 MA, which act as strong dynamic levels of support and resistance.

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

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

Trading recommendations
  • Support levels: 1.13550, 1.13000
  • Resistance levels: 1.14000, 1.14400

Positions must be opened from key levels.

If the price consolidates below the local support 1.13550, the correction on EUR/USD may continue. The movement is tending potentially to the round level 1.13000.

Alternative option. If the EUR/USD quotes overcome the 1.14000 mark, we recommend looking for entry points to the market in order to open long positions. The target movement level is 1.14400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29999
  • Open: 1.29344
  • % chg. over the last day: -0.52
  • Days's range: 1.29207 – 1.29579
  • 52 wk range: 1.1986 – 1.5020

During yesterday's trading, sales prevailed on GBP/USD. The drop in quotations exceeded 0.50%. In June, the index of business activity in the manufacturing sector of the UK declined from 56.3 to 54.3. At the moment, the currency is consolidating in a rather narrow range (1.29200-1.29600). Correction on the GBP/USD currency pair may continue. We are waiting for statistics from the UK.

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

GBP/USD

The signals of the indicators are ambiguous. The GBP/USD quotes have fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is in the negative zone and continues to decline, indicating the further correction on the GBP/USD currency pair.

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

Trading recommendations
  • Support levels: 1.29200, 1.28300
  • Resistance levels: 1.29600, 1.30250

If the statistics from Britain turns out to be weak, the correction on GBP/USD may continue. The movement is tending potentially to 1.28750-1.28300.

An alternative may be an upward trend on the GBP/USD currency pair to the resistance level of 1.30250.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29673
  • Open: 1.29899
  • % chg. over the last day: +0.12
  • Day's range: 1.29702 – 1.30134
  • 52 wk range: 1.2458 – 1.4692

Yesterday, a slight correction was observed on USD/CAD. At the moment, the technical pattern is ambiguous. The key levels of support and resistance are still 1.29600 and 1.30100, respectively. The market is waiting for additional drivers. Today, we recommend opening positions from the key levels.

The news background on Canada's economy is calm.

USD/CAD

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

The MACD histogram has fixed near the 0 mark.

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: 1.29600
  • Resistance levels: 1.30100, 1.30500, 1.31350

If the price fixes above the local resistance of 1.30100, a correction may develop on the USD/CAD currency pair. The target level of movement is 1.30500-1.30600.

Alternative option. If the USD/CAD quotes overcome the level of 1.29600, we recommend you to look for entry points to the market to open short positions. The movement is tending potentially to 1.29250-1.29000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.112
  • Open: 113.327
  • % chg. over the last day: +1.01
  • Day's range: 112.731 – 113.442
  • 52 wk range: 99.08 – 123.69

Yesterday, aggressive purchases were observed on USD/JPY. The yen weakened against the US dollar by more than 125 points. The currency formed a local resistance of 113.450. The 112.800 mark is already "mirror" support. Today, in the Asian trading session, there was a corrective movement. We still advise paying attention to the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

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

The MACD histogram has begun to decline and now is below the signal line, which signals a correction on USD/JPY.

Stochastic Oscillator is located near the oversold zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.

Trading recommendations
  • Support levels: 112.800, 112.500, 112.150
  • Resistance levels: 113.150, 113.450

If the price fixes above the local resistance of 113.150, we recommend you to look for entry points to the market in order to open long positions. The movement is tending potentially to 113.450-113.600.

Alternative option. If the USD/JPY quotes overcome the level of 112.800, it is necessary to consider sales. The target movement level is 112.500-112.150.

by JustForex, 2017.07.04

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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.

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