The Analytical Overview of the Main Currency Pairs on 2017.06.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12728
  • Open: 1.12519
  • % chg. over the last day: -0.20
  • Day's range: 1.12507 – 1.12780
  • 52 wk range: 1.0366 – 1.1616

Yesterday, a correction movement was observed on EUR/USD. Nevertheless, the US dollar remains under pressure due to weak statistics in the non-production sector of the country. At the moment, the key trading range is 1.12400-1.12800.

Today, the news background is rather calm:
  • – The volume of retail sales in the Eurozone – 12:00 (GMT+3:00);
  • – The number of open jobs in the JOLTS labor market – 17:00 (GMT+3:00).
EUR/USD

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

The MACD histogram is located in the positive area and above the signal line, which signals an increase in EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a correction on EUR/USD.

Trading recommendations
  • Support levels: 1.12400, 1.12000
  • Resistance levels: 1.12800

We expect further growth of EUR/USD. If the price fixes above the local resistance of 1.12800, we recommend you to look for entry points to the market to open long positions. The movement is tending potentially to 1.13250-1.13500.

Alternative option. If the EUR/USD quotes fix below 1.12400, a correction to the round level of 1.12000 may develop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28570
  • Open: 1.28955
  • % chg. over the last day: +0.27
  • Day's range: 1.28930 – 1.29498
  • 52 wk range: 1.1986 – 1.5020

At the moment, the technical pattern on the GBP/USD currency pair is ambiguous. The pound is still under pressure due to rising political risks in the UK. The following key support and resistance levels can be identified: 1.29000 and 1.29500, respectively.

The publication of important economic reports from Britain is not planned today.

GBP/USD

GBP/USD is above 50 MA and 200 MA, which indicates the bullish sentiment.

The MACD histogram has fixed in the positive area and above the signal line, which signals the purchase of GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals a downward trend on GBP/USD.

Trading recommendations
  • Support levels: 1.29000, 1.28600
  • Resistance levels: 1.29500, 1.30000

We recommend opening positions from key levels.

If the price overcomes resistance level 1.29500, it is necessary to consider buying GBP/USD. The target level of movement is 1.30000.

Alternative option. If the price consolidates below the round level of 1.29000, the bearish sentiment may prevail on the GBP/USD currency pair. The immediate goal for profit-taking is 1.28600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34852
  • Open: 1.34669
  • % chg. over the last day: -0.19
  • Day's range: 1.34425 – 1.34813
  • 52 wk range: 1.2458 – 1.4692

In the Asian trading session, the currency kept the local resistance level of 1.34800, which caused the bearish sentiment. At the moment, the Canadian dollar is being traded near the support level of 1.34400. We are waiting for statistics from Canada.

At 17:00 (GMT+3:00) the data on the Ivey business activity index in Canada will be released.

USD/CAD

The price has fixed below 50 MA and 200 MA, which points to the power of the sellers.

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

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

Trading recommendations
  • Support levels: 1.34400, 1.34000
  • Resistance levels: 1.34800, 1.35200

If the statistics from Canada is positive, the downward trend on USD/CAD may continue. The immediate goal for profit taking is 1.34000.

An alternative may be the growth of the USD/CAD quotations to the level of 1.35000-1.35200.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.340
  • Open: 110.433
  • % chg. over the last day: +0.02
  • Day's range: 109.552 – 110.526
  • 52 wk range: 99.08 – 123.69

On USD/JPY, aggressive sales are observed. In the Asian trading session, the yen increased against the US dollar by more than 75 points. The currency formed a local support of 109.600. The 110.300 mark is already a "mirror" resistance. The demand for safe assets is at a high level.

The news background on the economy of Japan is calm today.

USD/JPY

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 and below the signal line, which gives a signal to sell USD/JPY.

Stochastic Oscillator is in the oversold zone, the %K line crosses the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 109.600
  • Resistance levels: 110.300, 111.000

We believe that the downward trend in USD/JPY may continue. If the price consolidates below the local support of 109.600, we recommend you to look for entry points to the market in order to open short positions. The movement is tending potentially 109.250-109.000. When tracking a position, one should use a trailing stop.

by JustForex, 2017.06.06

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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.