The Analytical Overview of the Main Currency Pairs on 2017.09.25

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19401
  • Open: 1.18979
  • % chg. over the last day: +0.11
  • Day's range: 1.18959 – 1.19365
  • 52 wk range: 1.0341 – 1.2069

At the moment, the euro is under pressure. The block of Angela Merkel was reelected for a fourth term. Nevertheless, the party of the German Chancellor suffered significant losses in comparison with past results. These events can cause difficulties in forming a coalition. The bearish sentiment prevails on the EUR/USD currency pair. The price tests the round level of 1.19000.

The economic calendar on 2017.09.25:

  • - The IFO business climate index at 11:00 (GMT+3:00).

At 16:00 (GMT+3:00) the head of the ECB Draghi will give a speech.

EUR/USD

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

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

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

Trading recommendations
  • Support levels: 1.19000, 1.18700, 1.18400
  • Resistance levels: 1.19450

We expect a downward trend on the EUR/USD currency pair. If the price fixes below the round level of 1.19000, we recommend looking for entry points to the market to open short positions. The movement is tending to 1.18700-1.18400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35642
  • Open: 1.34812
  • % chg. over the last day: -0.63
  • Day's range: 1.34810 – 1.35706
  • 52 wk range: 1.1450 – 1.3618

On Friday, September 22, the GBP/USD currency pair held the key offer zone of 1.35750-1.36000, which caused the "bearish" sentiment. The pound weakened against the US dollar by more than 90 points. At the moment, the price is testing local support of 1.35150. The trading instrument has the potential for further correction.

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

GBP/USD

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

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: 1.35150, 1.34750, 1.34000
  • Resistance levels: 1.36000

If the price fixes below the local support of 1.35150, we recommend considering sales of GBP/USD. The target movement level is 1.34750-1.34500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23235
  • Open: 1.23308
  • % chg. over the last day: +0.09
  • Day's range: 1.23236 – 1.23497
  • 52 wk range: 1.2059 – 1.3795

At the moment, purchases prevail on USD/CAD. The price is testing the local resistance of 1.23500. The nearest support is at around 1.23100. The technical pattern indicates a further correction of the USD/CAD quotes. We recommend paying attention to the dynamics of oil quotations.

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

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 and continues to rise, which signals a bullish sentiment on USD/CAD.

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

Trading recommendations
  • Support levels: 1.23100, 1.22500
  • Resistance levels: 1.23500, 1.24000

If the price fixes above the resistance level of 1.23500, we recommend considering buying USD/CAD. The movement is tending to the round level of 1.24000.

Alternative option. If the USD/CAD quotes overcome the mark of 1.23100, it is necessary to search for entry points to the market for opening short positions. The target level of movement is 1.22700-1.22500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.457
  • Open: 112.127
  • % chg. over the last day: -0.44
  • Day's range: 112.091 – 112.528
  • 52 wk range: 99.53 – 118.67

On the USD/JPY currency pair, there was an ambiguous technical picture. At the moment, the trading instrument is consolidating. The key trading range is 112.000-112.450. Positions should 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

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

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

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

Trading recommendations
  • Support levels: 112.000, 111.500
  • Resistance levels: 112.450, 113.000

If the price fixes above the local resistance of 112.450, we recommend you to look for entry points to the market to open long positions. The target movement level is 113.000.

Alternative option. If the USD/JPY quotes overcome the round level of 112.000, it is necessary to consider sales. The movement is tending to 111.500.

by JustForex, 2017.09.25

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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.