The Analytical Overview of the Main Currency Pairs on 2018.01.25

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22986
  • Open: 1.24088
  • % chg. over the last day: +0.76
  • Day's range: 1.24101 – 1.24362
  • 52 wk range: 1.0492 – 1.2296

During yesterday trading, the EUR/USD currency pair reached a three-year high. Quotes rose by more than 100 points. In the near future, there may be a technical correction. At the moment, the EUR/USD currency pair is being traded in the range of 1.24000-1.24500. Market participants are waiting for the ECB decision on monetary policy. We recommend paying attention to the statements and comments of the head of the Central Bank Mario Draghi. Positions should be opened from the key levels.

The news feed on 2018.01.25:

  • - IFO business climate index at 11:00 (GMT+2:00);
    - ECB interest rate decision at 14:45 (GMT+2:00);
    - Initial jobless claims in the US at 15:30 (GMT+2:00);
    - New home sales in the US at 17:00 (GMT+2:00).
EUR/USD

The indicators signals are different. The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

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 below the %D line, which signals to sell EUR/USD.

Trading recommendations
  • Support levels: 1.24000, 1.23200, 1.22200
  • Resistance levels: 1.24500, 1.25000

If the price fixes below the round level of 1.24000, we recommend you to look for entry points to the market to open short positions. The movement is tending potentially to 1.23600-1.23200.

Alternative option. If the price fixes above 1.24500, it is necessary to consider buying EUR/USD. The target movement level is 1.24900-1.25250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.40034
  • Open: 1.42376
  • % chg. over the last day: +1.57
  • Day's range: 1.42330 – 1.42569
  • 52 wk range: 1.2014 – 1.3820

Yesterday, the growth of the GBP/USD currency pair exceeded 200 points. The pound was supported due to the optimistic labor market report. The US dollar remains under pressure. At the moment, GBP/USD is consolidating. The key trading range is 1.42000-1.43000. Positions should be opened if the price fixes above/below these marks.

The news feed on the UK economy is calm today. We recommend paying attention to statistics from the USA.

GBP/USD

The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

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

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

Trading recommendations
  • Support levels: 1.42000, 1.41000, 1.40250
  • Resistance levels: 1.43000, 1.43500

If the statistics from the US turns out to be optimistic, we expect the GBP/USD quores correction. The movement is tending potentially to 1.41500-1.41250.

An alternative may be further growth of GBP/USD to 1.43500-1.43750.

It is necessary to look for confirmations and entry points to the market on lower timeframes.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24189
  • Open: 1.23397
  • % chg. over the last day: -0.52
  • Day's range: 1.23128 – 1.23295
  • 52 wk range: 1.2059 – 1.3795

Yesterday, the USD/CAD quotes continued to fall. At the moment, the technical pattern is ambiguous. The support and resistance levels are 1.23000 and 1.23500, respectively. Investors expect additional drivers. The Canadian dollar is supported by the growth of oil quotes. We recommend you to open positions from the key levels.

At 15:30 (GMT+2:00) retail sales statistics in Canada will be published.

USD/CAD

The signals of the indicators are different. The price is below 50 MA and 200 MA, which indicates a bearish sentiment.

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

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

Trading recommendations
  • Support levels: 1.23000, 1.22500
  • Resistance levels: 1.23500, 1.24000, 1.24500

If the USD/CAD quotes continue to fall, sales should be considered. The movement is tending potentially to 1.22500-1.22300.

Alternative option. If the USD/CAD currency pair increases, we recommend you to look for entry points to the market to open long positions. The target movement level is 1.24000-1.24200.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.315
  • Open: 109.198
  • % chg. over the last day: -0.90
  • Day's range: 109.112 – 109.226
  • 52 wk range: 107.33 – 115.62

Yesterday, the USD/JPY currency pair continued its decline, which exceeded 100 points. At the moment, the quotes are consolidating. The key support and resistance levels are 108.900 and 109.400, respectively. In the near future, there may be a technical correction. Positions should be opened from the key levels. Investors expect economic reports from the United States. We recommend paying attention to the US government bonds yield.

The news feed on Japan's economy is calm.

USD/JPY

The indicators signals are different. The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

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

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

Trading recommendations
  • Support levels: 108.900, 108.500
  • Resistance levels: 109.400, 110.000, 110.450

If the price fixes below the local support level of 108.900, we recommend looking for entry points to the market to open short positions. The movement is tending potentially to 108.500-108.300.

An alternative may be the growth of USD/JPY quotes to the level of 109.900-110.100.

by JustForex, 2018.01.25

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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