The Analytical Overview of the Main Currency Pairs on 2017.12.18

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17771
  • Open: 1.17423
  • % chg. over the last day: -0.20
  • Day's range: 1.17375 – 1.17821
  • 52 wk range: 1.0341 – 1.2069

At the moment, the technical pattern on the EUR/USD currency pair is ambiguous. The key levels of support and resistance are 1.17650 and 1.18000 respectively. A possible implementation of tax reform in the US supports the dollar. Investors expect data on inflation in the Eurozone. We recommend opening positions from the key levels.

The news feed on 2017.12.18:

At 12:00 (GMT+2:00), the consumer price index will be published in the Eurozone.

EUR/USD

The indicators do not send accurate signals. The price is close to 50 MA and 200 MA, which at the moment are a strong dynamic resistance.

The MACD histogram has begun to rise and fixed above the signal line, which indicates the growth of the EUR/USD quotes.

Stochastic Oscillator is in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.17650, 1.17300, 1.17000
  • Resistance levels: 1.18000, 1.18400, 1.18750

If the price fixes below the support level of 1.17650, you need to look for entry points in the market to open short positions. The movement is tending to 1.17300-1.17000.

Alternative option. If the price fixes above the 1.18000 mark, we recommend considering buying EUR/USD. The movement is tending to 1.18400-1.18600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34291
  • Open: 1.33094
  • % chg. over the last day: -0.83
  • Day's range: 1.33081 – 1.33594
  • 52 wk range: 1.1450 – 1.3618

On Friday, aggressive sales were observed on the GBP/USD currency pair. The drop in quotations exceeded 120 points. At the moment, the trading instrument is consolidating. The key support and resistance levels are 1.33350 and 1.33700, respectively. The GBP/USD currency pair has the potential to further decline. We recommend to follow up-to-date information on tax reform in the USA.

At 13:00 (GMT+2:00) the index of industrial orders in the UK will be published.

GBP/USD

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

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

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

Trading recommendations
  • Support levels: 1.33350, 1.33100
  • Resistance levels: 1.33700, 1.34100, 1.34550

If the price fixes below 1.33350, we recommend considering sales of GBP/USD. The movement is tending to 1.33100-1.32750. When tracking positions, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27898
  • Open: 1.28667
  • % chg. over the last day: +0.52
  • Day's range: 1.28422 – 1.28809
  • 52 wk range: 1.2059 – 1.3795

At the moment, the bullish sentiment is prevailing on the USD/CAD currency pair. On Friday, the Canadian dollar weakened against the US dollar by more than 100 points. The further growth of the USD/CAD quotations is not excluded. At the moment, the trading instrument is consolidating in the range of 1.28450 and 1.28850. We recommend paying attention to the news feed on the US economy. Positions must be opened from the key levels.

At 15:30 (GMT+2:00) the data on the volume of investment in Canadian securities will be released.

USD/CAD

The 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: 1.28450, 1.28000, 1.27400
  • Resistance levels: 1.28850

If the price fixes above the resistance level of 1.28850, further growth of the USD/CAD currency pair is expected. The movement is tending to 1.29000-1.29300.

Alternative option. If the price fixes below 1.28450, it is necessary to consider selling USD/CAD. The target movement level is 1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.384
  • Open: 112.718
  • % chg. over the last day: +0.17
  • Day's range: 112.312 – 112.830
  • 52 wk range: 99.53 – 118.67

At the moment, there is an ambiguous technical pattern on the USD/JPY currency pair. The trading instrument is in a sideways trend. The key levels are support – 112.500; resistance – 112.800. It is recommended to open positions if the price fixes above/below these marks. It is necessary to pay attention to the US government bonds yield.

In the Asian trading session, the optimistic data on Japan's trade balance was published.

USD/JPY

The indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 112.500, 112.100
  • Resistance levels: 112.800, 113.250

If the price fixes above the resistance level of 112.800, we recommend considering buying USD/JPY. The movement is tending to 113.250.

Alternative option. If USD/JPY overcome the level of 112.500, it is necessary to consider sales. The closest target for profit taking is the support level of 112.100.

by JustForex, 2017.12.18

We recommend you to get acquainted with the daily overview of the news feed.

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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