The Analytical Overview of the Main Currency Pairs on 2017.10.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17433
  • Open: 1.17588
  • % chg. over the last day: +0.11
  • Day's range: 1.17480 – 1.17721
  • 52 wk range: 1.0341 – 1.2069

There is an ambiguous technical pattern on the main currency pairs. Investors expect a report on the US labor market, which will be published on October 6. Preliminary statistics from ADP was quite optimistic. Support for the US currency is provided by positive data on the index of business activity in the non-manufacturing sector of the United States. In September, the indicator increased by 8.1% to 59.8. Market expectations were at 55.5. At the moment the EUR/USD quotes are testing the 1.17600 mark. We recommend opening positions from key levels.

The economic calendar for 2017.10.05:

  • - Publication of the ECB meeting minutes on monetary policy at 14:30 (GMT+3:00);
  • - The number of initial applications for unemployment benefits in the US at 15:30 (GMT+3:00);
  • - The balance of the US trade at 15:30 (GMT+3:00).

We also recommend you to pay attention to the speeches of the FOMC representatives.

EUR/USD

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.17600, 1.17000
  • Resistance levels: 1.18300

If the price fixes below the support level of 1.17600, we recommend considering sales of EUR/USD. The movement is tending to 1.17250-1.17000.

The alternative may be the growth of the EUR/USD to the level of 1.18000-1.18300.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32351
  • Open: 1.32407
  • % chg. over the last day: -0.02
  • Day's range: 1.31742 – 1.32493
  • 52 wk range: 1.1450 – 1.3618

At the moment there are aggressive sales on GBP/USD. The currency overcame and fixed below the key 1.32400 mark, which is already a "mirror" resistance. The trading instrument has the potential to further reduce. Local support is the level of 1.31750. Preliminary statistics on the labor market in the US supports the demand for US currency.

The news on the UK economy today is calm.

GBP/USD

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

The MACD histogram is also in the negative zone and continues to decline, which signals a bearish sentiment for GBP/USD.

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

Trading recommendations
  • Support levels: 1.31750, 1.31000
  • Resistance levels: 1.32400, 1.33000

If the price fixes below 1.31750, we expect a further drop in GBP/USD. The movement is tending to 1.31250-1.31000.

Alternative option. If the GBP/USD quotes overcome the "mirror" resistance of 1.32400, we recommend considering buying. The target movement level is 1.327500-1.33000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24870
  • Open: 1.24701
  • % chg. over the last day: -0.06
  • Day's range: 1.24685 – 1.24924
  • 52 wk range: 1.2059 – 1.3795

The technical picture on USD/CAD is still mixed. The trading instrument is consolidating in a rather narrow range. At the moment, the price is testing the local resistance of 1.24850. The nearest support is at the level of 1.24500. Negative dynamics in the market of "black gold" puts additional pressure on the Canadian dollar. We recommend opening positions from the key levels.

At 15:30 (GMT+3:00) there will be data on Canada's balance of trade.

USD/CAD

Indicators do not send accurate signals. The USD/CAD quotes have fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.24500, 1.24200
  • Resistance levels: 1.24850, 1.25350

If the price fixes above the local resistance of 1.24850, we recommend considering buying USD/CAD. The target movement level is 1.25350-1.25500.

Alternative option. If the price fixes below the 1.24500 mark, you need to look for entry points to the market to open short positions. The movement is tending to 1.24200-1.24000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.843
  • Open: 112.754
  • % chg. over the last day: -0.04
  • Day's range: 112.619 – 112.921
  • 52 wk range: 99.53 – 118.67

Since the beginning of this week, trading on the USD/JPY currency pair is quite active. At the same time, a unidirectional trend is not observed. At the moment, the key trading range is 112.500-112.850. The trading instrument is consolidating. It is recommended to open positions if the price fixes above/below these marks.

It is necessary to pay attention to news on the US economy.

USD/JPY

The signals of the indicators are ambiguous. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 112.500, 112.250
  • Resistance levels: 112.850, 113.250

If the price fixes above the 112.850 level, you should consider buying USD/JPY. The movement is tending to 113.100-113.250.

Alternative option. If the USD/JPY quotes overcome the level of 112.500, we recommend looking for entry points to the market to open short positions. The target level of movement is 112.250-112.000.

by JustForex, 2017.10.05

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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.