The Analytical Overview of the Main Currency Pairs on 2018.03.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22876
  • Open: 1.23340
  • % chg. over the last day: +0.46
  • Day's range: 1.23350 – 1.23547
  • 52 wk range: 1.0492 – 1.2537

Yesterday, there were aggressive purchases on the EUR/USD currency pair. The quotes rose by almost 100 points. At the moment, the trading instrument is moving in the range of 1.23600-1.23300. The Fed meeting is the key event this week, which will start today. Financial markets participants expect that the regulator will raise the key interest rate by 25 points to 1.75%. We recommend you to open positions from the key levels.

The news feed on 2018.03.20:
  • - ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+2:00).
EUR/USD

Indicators indicates the power of buyers. The price has fixed above 50 MA and 200 MA.

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

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

Trading recommendations
  • Support levels: 1.23300, 1.23000, 1.22750
  • Resistance levels: 1.23600, 1.24000, 1.24300

If the price fixes above 1.23600, it is necessary to consider purchases of EUR/USD. The movement is tending potentially to the round level of 1.24000.

An alternative is the decline of the EUR/USD currency pair to 1.23000-1.22750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39457
  • Open: 1.40243
  • % chg. over the last day: +0.59
  • Day's range: 1.40471 – 1.40609
  • 52 wk range: 1.2106 – 1.4345

Yesterday, the GBP/USD currency pair jumped after the news that Britain and the European Union reached an agreement on issues on the country's exit from the EU. The growth of the quotes exceeded 120 points. At the moment, the key support and resistance levels are: 1.40250 and 1.40650, respectively. We recommend you to open positions above/below these marks.

Today, the consumer price index will be published in the UK at 11:30 (GMT+2:00).

GBP/USD

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

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 located in the neutral zone, the %K line is above the %D line, which also signals to buy GBP/USD.

Trading recommendations
  • Support levels: 1.40250, 1.39900, 1.39400
  • Resistance levels: 1.40650, 1.41000, 1.41400

If the price fixes above 1.40650, the GBP/USD currency pair is expected to grow. The movement is tending potentially to 1.41000-1.41400.

Alternative option. If the GBP/USD quotes fix below the support level of 1.40250, we recommend considering sales. The target movement level is 1.39900-1.39400.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30936
  • Open: 1.30822
  • % chg. over the last day: -0.08
  • Day's range: 1.30647 – 1.30763
  • 52 wk range: 1.2059 – 1.3795

There is an ambiguous technical pattern on the USD/CAD currency pair. The trading instrument is in flat. In the near future, there may be a technical correction. Investors expect additional drivers. We also recommend you to pay attention to the Fed two-day meeting, which begins today. The key support and resistance levels are: 1.30500 and 1.30900, respectively. The positions should be opened from these marks.

Today, the report on the volume of wholesale sales in Canada will be published at 14:30 (GMT+2:00).

USD/CAD

Indicators don’t show accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is located in the negative zone and continues to decline, which indicates a correction of the USD/CAD quotes.

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

Trading recommendations
  • Support levels: 1.30500, 1.30000, 1.29600
  • Resistance levels: 1.30900, 1.31200, 1.31600

If the price fixes above 1.30900, USD/CAD is expected to rise. The movement is tending potentially to 1.31200-1.31600.

Alternative option. If the price fixes below the support level of 1.30500, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to the round level of 1.30000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 105.969
  • Open: 106.025
  • % chg. over the last day: +0.06
  • Day's range: 106.382 – 106.502
  • 52 wk range: 107.33 – 115.51

Yesterday, there was a variety of trends on the USD/JPY currency pair. We recommend you to follow the results of the Fed meeting, as well as the 10-year US government bonds yield. Today during the Asian trading session, purchases prevailed. At the moment, the key support and resistance levels are: 106.200 and 106.500, respectively. The positions should be opened from these marks.

The news feed on Japan's economy is calm.

USD/JPY

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

The MACD histogram is located in the positive zone, above the signal line, which gives a strong signal to buy USD/JPY.

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

Trading recommendations
  • Support levels: 106.200, 105.900, 105.650
  • Resistance levels: 106.500, 106.750, 107.000

If the price fixes above the 106.500 mark, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to the round level of 107.000.

Alternative option. If the price fixes below the level of 106.200, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 105.900-105.650.

by JustForex, 2018.03.20

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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