The Analytical Overview of the Main Currency Pairs on 2017.07.03

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14390
  • Open: 1.14180
  • % chg. over the last day: -0.13
  • Day's range: 1.13942 – 1.14272
  • 52 wk range: 1.0366 – 1.1616

Last week, the US dollar appreciably weakened against the major world currencies. The euro was supported by the comments of the ECB head. In the near future, the regulator may raise the issue of reducing the program of motivation. During this period, the growth of the EUR/USD quotations exceeded 200 points. Nevertheless, at the moment the technical pattern is ambiguous. The correction of the EUR/USD quotations is possible. The key trading range is 1.13800-1.14400. Positions must be opened from these levels.

The economic calendar on 2017.07.03:
  • – The index of business activity in the manufacturing sector of Germany – 10:55 (GMT+3:00);
  • – The index of business activity in the manufacturing sector of the Eurozone – 11:00 (GMT+3:00);
  • – The index of business activity in the manufacturing sector of the US from ISM – 17:00 (GMT+3:00).
EUR/USD

The price is close to 50 MA, which is currently a fairly strong dynamic resistance.

The MACD histogram has begun to decline and moved to the negative zone, which indicates a correction of the EUR/USD currency pair.

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

Trading recommendations
  • Support levels: 1.13800, 1.13250
  • Resistance levels: 1.14400

If the statistics from the EU is positive, the growth of the EUR/USD currency pair may continue. The movement is tending potentially to 1.14400-1.14500.

An alternative may be a corrective movement on EUR/USD to the level of 1.13500-1.13250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29955
  • Open: 1.29999
  • % chg. over the last day: +0.16
  • Day's range: 1.29905 – 1.30231
  • 52 wk range: 1.1986 – 1.5020

On the GBP/USD currency pair, there is a pronounced upward trend. The pound reached a round level of 1.30000. At the moment, the following key support and resistance levels can be identified: 1.29600 and 1.30250, respectively. Nevertheless, technical correction is possible in the near future. We expect statistics from the UK and the USA.

At 11:30 (GMT+3:00), the index of business activity in the manufacturing sector of Great Britain will be published.

GBP/USD

GBP/USD is around 50 MA, which is quite strong dynamic support.

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

Stochastic Oscillator has gone out of the oversold zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

Trading recommendations
  • Support levels: 1.29600, 1.28300
  • Resistance levels: 1.30250

If the data on business activity in the UK is upbeat, the upward trend in GBP/USD may continue. The target level of movement is 1.30500-1.30750.

An alternative may be the correction of the GBP/USD currency pair to the level of 1.29600-1.29500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29941
  • Open: 1.29673
  • % chg. over the last day: -0.30
  • Day's range: 1.29639 – 1.29946
  • 52 wk range: 1.2458 – 1.4692

Last week, aggressive sales were observed on the USD/CAD currency pair. During this period, the Canadian dollar increased against the US dollar by more than 275 points. At the moment, the technical pattern indicates the development of a corrective movement. A fairly strong reversal formation of technical analysis, price and MACD histogram divergence, has emerged on the market. The key trading range is 1.29600-1.30100.

The news background on Canada's economy is calm today.

USD/CAD

The price is close to 50 MA, which is a strong dynamic resistance.

The MACD histogram has begun to rise and fixed above the signal line, which indicates the growth of the USD/CAD quotes.

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

Trading recommendations
  • Support levels: 1.29600
  • Resistance levels: 1.30100, 1.30500, 1.31350

If the price fixes above the local resistance of 1.30100, a correction movement may develop on the USD/CAD currency pair. The movement is tending potentially to 1.30500-1.30600.

Alternative option. If the USD/CAD rate overcomes the support level of 1.29600, the downward trend may continue. The target level of movement is 1.29250-1.29000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.137
  • Open: 112.112
  • % chg. over the last day: +0.18
  • Day's range: 112.066 – 112.943
  • 52 wk range: 99.08 – 123.69

Today, the USD/JPY currency pair opened with a gap down. Aggressive purchases were observed in the Asian trading session. The growth of еру USD/JPY quotations exceeded 75 points. At the moment, the price is testing a key resistance of 112.900. The closest support is 112.500. We recommend paying attention to the US government bonds yield.

Today, the Bank of Japan published positive statistics from Tankan. We expect economic reports from the USA.

USD/JPY

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

The MACD histogram has fixed in the positive zone and above the signal line, which signals the growth of the USD/JPY quotes.

Stochastic Oscillator is located in the overbought zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 112.500, 112.150
  • Resistance levels: 112.900

If the statistics from the US is positive, we recommend you to look for entry points to the market to open long positions. The movement is tending potentially to 113.500.

An alternative may be a downward trend in USD/JPY towards 112.500-112.150. While following a position, it is better to use a trailing stop.

by JustForex, 2017.07.03

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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.