The Analytical Overview of the Main Currency Pairs on 2017.12.21

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18394
  • Open: 1.18712
  • % chg. over the last day: +0.32
  • Day's range: 1.18632 – 1.18823
  • 52wk range: 1.0341 – 1.2069

On the EUR/USD currency pair, the bullish sentiment is still prevailing. Yesterday, the growth of quotations exceeded 50 points. At the moment, the trading instrument is consolidating. The key range is 1.18600-1.19000. Investors took a wait-and-see attitude before the release of important economic reports from the United States. We recommend opening positions from the key support and resistance levels.

At 15:30 (GMT+2:00) the statistics on the US GDP will be released.

EUR/USD

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 EUR/USD.

Stochastic Oscillator is located 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: 1.18600, 1.18200, 1.17800
  • Resistance levels: 1.19000, 1.19500

If the statistics from the US is optimistic, the bearish sentiment may prevail on the EUR/USD currency pair. The movement is tending to 1.18200-1.18000.

An alternative may be the growth of the EUR/USD quotes to the level of 1.19500.

When following the positions, we recommend using a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33836
  • Open: 1.33737
  • % chg. over the last day: -0.11
  • Day's range: 1.33512 – 1.33789
  • 52 wk range: 1.1450 – 1.3618

Yesterday, GBP/USD kept the resistance level at 1.34100, which triggered a bearish sentiment. The pound closed the trading session in the negative zone. At the moment, the quotes are consolidating. The trading instrument has the potential to further reduce. The attention is focused on the economic reports from the United States. Positions must be opened from the key levels.

The news feed on the UK economy is calm.

GBP/USD

The indicators do not send accurate signals: 50 MA has crossed 200 MA.

The MACD histogram is in the negative zone and below the signal line, which indicates a drop in GBP/USD.

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: 1.33350, 1.33100
  • Resistance levels: 1.33750, 1.34100, 1.34550

If economic reports from the United States are positive, we recommend considering selling GBP/USD. The target movement level is 1.33000-1.32750.

An alternative may be the growth of GBP/USD to 1.34250-1.34500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28762
  • Open: 1.28283
  • % chg. over the last day: -0.39
  • Day's range: 1.28213 – 1.28382
  • 52 wk range: 1.2059 – 1.3795

Yesterday, sales prevailed on the USD/CAD currency pair. The Canadian dollar gained support because of positive data on the volume of wholesale sales in the country. At the moment, the trading instrument is in a sideways trend. The key range is 1.28200-1.28450. Participants of the financial markets expect important economic reports from Canada. We recommend paying attention to the news feed on the US economy.

At 15:30 (GMT+2:00) the reports on inflation and retail sales in Canada will be released.

USD/CAD

The indicators do not send accurate signals: 50 MA has crossed 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell 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: 1.28200, 1.28000, 1.27400
  • Resistance levels: 1.28450, 1.28850, 1.29150

If the statistics from Canada turns out to be weak, the bullish sentiment may prevail on the USD/CAD currency pair. The movement is tending to 1.28850-1.29150.

Alternatively, USD/CAD may fall to the level of 1.27600-1.27400.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.882
  • Open: 113.392
  • % chg. over the last day: +0.32
  • Day's range: 113.200 – 113.636
  • 52 wk range: 99.53 – 118.67

The "safe haven" currency continues to lose ground against the US dollar. During yesterday's trading, the growth of the USD/JPY quotations exceeded 50 points. At the moment, the price is testing a key resistance of 113.650. The 113.250 mark is already a "mirror" support. The further growth of the USD/JPY currency pair is not excluded. The US dollar is supported by the positive dynamics of government bonds. We are waiting for statistics from the USA.

The Bank of Japan, as expected, left the key interest rate at the previous level of -0.10%. The regulator plans to adhere to the current monetary policy rate.

USD/JPY

The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is located in the positive zone and continues to rise, indicating a bullish sentiment on USD/JPY.

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: 113.250, 112.800, 112.500
  • Resistance levels: 113.650, 114.000

If the price fixes above the key resistance of 113.650, we recommend considering buying USD/JPY. The closest target for profit taking is the round level of 114.000.

Alternative option. If the price fixes below the "mirror" support of 113.250, correction of the USD/JPY currency pair is expected. The target movement level is 113.000-112.800.

by JustForex, 2017.12.21

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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