The Analytical Overview of the Main Currency Pairs on 2018.07.12

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17440
  • Open: 1.16728
  • % chg. over the last day: -0.45
  • Day's range: 1.16705 – 1.16775
  • 52 wk range: 1.0571 – 1.2557

Yesterday, the bearish sentiment prevailed on the EUR/USD currency pair. Investors assess the risks of a trade war. The US administration announced its intention to introduce an additional 10 percent duties on import of Chinese goods. At the moment, the technical pattern is ambiguous: the EUR/USD quotes are moving in flat. Investors took a wait-and-see attitude before the publication of the account of the ECB meeting and the US inflation report. The key support and resistance levels are 1.16700 and 1.17000, respectively. We recommend opening positions from these marks.

The news feed on 2018.07.12:
  • - Publication of the account of the ECB monetary policy meeting at 14:30 (GMT+3:00);
  • - Inflation report in the US at 15:30 (GMT+3:00).
EUR/USD

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

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.16700, 1.16400, 1.16000
  • Resistance levels: 1.17000, 1.17300, 1.17600

If the price fixes below 1.16700, the EUR/USD quotes are expected to decline. The movement is tending to 1.16300-1.16000.

Alternative option. If the price fixes above the round level of 1.17000, we recommend considering purchases of EUR/USD. The target movement level is 1.17300-1.17600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32693
  • Open: 1.32025
  • % chg. over the last day: -0.38
  • Day's range: 1.32089 – 1.32230
  • 52 wk range: 1.2361 – 1.4345

During yesterday's trading session, the bearish sentiment was observed on the GBP/USD currency pair. Quotes fell by more than 70 points. At the moment, the technical pattern is ambiguous. The trading instrument is in a sideways trend. Local support and resistance levels are 1.31900 and 1.32300, respectively. We recommend opening positions from these marks.

Today, the publication of important news from the UK is not expected.

GBP/USD

The price is being traded 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 neutral zone, the %K line is crossing the line %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31900, 1.31500, 1.31000
  • Resistance levels: 1.32300, 1.32700, 1.33200

If the price fixes below the level of 1.31900, further decline in the GBP/USD quotes is expected. The movement is tending to 1.31500-1.31300.

Alternative option. If the price fixes above the resistance of 1.32300, it is necessary to consider purchases of GBP/USD. The movement is tending to 1.32700-1.33000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31149
  • Open: 1.32058
  • % chg. over the last day: +0.49
  • Day's range: 1.31938 – 1.32030
  • 52 wk range: 1.2059 – 1.3795

Yesterday's trading on the USD/CAD currency pair was very active. The growth of quotes exceeded 80 points. The Bank of Canada, as expected, raised interest rate by 25 basis points to 1.50%. At the moment, quotes are declining. Local support and resistance levels are 1.31750 and 1.32000, respectively. We recommend opening positions from these marks. We recommend paying attention to the dynamics of oil quotes.

The news feed on the economy of Canada is calm.

USD/CAD

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 USD/CAD.

Stochastic Oscillator is located near the oversold zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.31750, 1.31400, 1.31000
  • Resistance levels: 1.32000, 1.32300

If the price fixes below the support of 1.31750, a technical correction of the USD/CAD quotes is expected. The movement is tending to 1.31400-1.31200.

Alternative option. If the price fixes above the round level of 1.32000, we recommend considering purchases of USD/CAD. The target movement level is 1.32300-1.32500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.966
  • Open: 111.933
  • % chg. over the last day: +1.02
  • Day's range: 111.915 – 112.034
  • 52 wk range: 104.56 – 114.74

There are aggressive purchases on the USD/JPY currency pair. During yesterday's and today's trading sessions, quotes have risen by more than 150 points. At the moment, the local support and resistance levels are 112.150 and 112.450, respectively. The positions should be opened from these marks. In the near future, technical correction is not ruled out.

The news feed on the economy of Japan is calm.

USD/JPY

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 USD/JPY.

Stochastic Oscillator is located in the neutral zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 112.150, 111.700, 111.250
  • Resistance levels: 112.450, 112.800

If the price fixes below the level of 112.150, the correction of the USD/JPY currency pair is expected. The movement is tending to 111.700-111.500.

Alternative option. If the price fixes above 112.450, the USD/JPY currency pair is expected to rise. The target movement level is 112.800-113.000.

by JustForex, 2018.07.12

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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