The Analytical Overview of the Main Currency Pairs on 2017.06.02

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12443
  • Open: 1.12123
  • % chg. over the last day: -0.24
  • Day's range: 1.12104 – 1.12220
  • 52 wk range: 1.0366 – 1.1616

Today, the report on the labor market in the United States is in the focus of attention. Most experts expect an economic slowdown. At the same time, yesterday's preliminary data from ADP supported the US dollar. The EUR/USD currency pair formed a local support of 1.12100. The nearest resistance is at the mark of 1.12600.

Report on the labor market in the US:
  • – average hourly wage at 15:30 (GMT+3:00);
  • – change in the number of employed in the non-agricultural sector of the US at 15:30 (GMT+3:00);
  • – the proportion of the economically active population at 15:30 (GMT+3:00);
  • – the unemployment rate at 15:30 (GMT+3:00).
EUR/USD

The EUR/USD quotes are between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives the sell signal.

Trading recommendations
  • Support levels: 1.12100, 1.11750, 1.11250
  • Resistance levels: 1.12600

We recommend waiting for the publication of statistics.

If the report on the labor market in the US is optimistic, sales may prevail on the EUR/USD currency pair. The movement is tending potentially to 1.11750-1.11250. When tracking the position, it is better to use a trailing stop.

The alternative may be the growth of the EUR/USD quotations to the resistance level of 1.12600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28855
  • Open: 1.28741
  • % chg. over the last day: +0.09
  • Day's range: 1.28563 – 1.28951
  • 52 wk range: 1.1986 – 1.5020

Yesterday, the trading was very dynamic on GBP/USD. However, a unidirectional trend did not occur. The currency tested the boundaries of the key trading range of 1.28500-1.29000. At the moment, the bearish sentiment prevails on the GBP/USD currency pair. We expect statistics from the UK and the USA.

At 11:30 (GMT+3:00) the data on the index of business activity in the construction sector in Britain will be published.

GBP/USD

The price is near 50 MA and 200 MA, which acts as a strong dynamic resistance.

The MACD histogram has consolidated below the signal line and begun to decline, indicating a fall in GBP/USD.

Stochastic Oscillator has reached the oversold zone, the %K line is below the %D line, which gives a weak signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.28500, 1.28000
  • Resistance levels: 1.29000, 1.29500

We expect a downward trend on the GBP/USD currency pair. If the price consolidates below the support level of 1.28500, we recommend looking for entry points to the market in order to open short positions. The immediate goal for profit taking is the round level of 1.28000.

Alternative option. If the price fixes above the 1.29000 mark, the bullish sentiment may prevail on the GBP/USD currency pair. The movement is tending potentially to 1.29500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34978
  • Open: 1.35179
  • % chg. over the last day: +0.19
  • Day's range: 1.35056 – 1.35361
  • 52 wk range: 1.2458 – 1.4692

The Canadian dollar is under pressure due to a sharp drop in quotations of "black gold". At the moment, WTI oil lost more than 2% in price. The US president broke the Paris agreement. USD/CAD has overcome the mark 1.35200, which is already "mirror" support. The key resistance is at the level of 1.35750. We recommend paying attention to the news line on the US economy.

The news background from Canada is rather calm today:

  • – labor productivity at 15:30 (GMT+3:00);
  • – the balance of visible trade at 15:30 (GMT+3:00).
USD/CAD

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

The MACD histogram is located in the positive area and continues to rise, which signals an increase in the USD/CAD currency pair.

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

Trading recommendations
  • Support levels: 1.35200, 1.34800, 1.34300
  • Resistance levels: 1.35750

We believe that the growth of the USD/CAD quotes may continue. We recommend looking for entry points to the market to open long positions. The movement is tending potentially to 1.35750.

Alternative option. If economic reports from the US turn out to be weak, a downward trend may develop on the USD/CAD currency pair. The target movement level is 1.34800-1.34500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.754
  • Open: 111.342
  • % chg. over the last day: +0.58
  • Day's range: 111.307 – 111.711
  • 52 wk range: 99.08 – 123.69

During yesterday's trading, purchases prevailed on USD/JPY. The yen weakened against the US dollar by more than 60 points. Today the rally of the American currency continued. At the moment, the following key levels of support and resistance can be identified: 111.300 and 111.650, respectively. We are waiting for statistics on the US economy.

Today, the publication of important economic reports from Japan is not planned.

USD/JPY

Indicators do not send accurate signals. The price has fixed above 50 MA and 200, which indicates the strength of buyers.

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

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a decrease in USD/JPY.

Trading recommendations
  • Support levels: 111.300, 111.000
  • Resistance levels: 111.650, 112.000

If the statistics from the US is positive, the growth of the USD/JPY currency pair may continue. The movement is tending potentially to the round level of 112.000.

An alternative may be a downward trend in USD/JPY against the support level of 111.000.

by JustForex, 2017.06.02

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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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