The Analytical Overview of the Main Currency Pairs on 2017.08.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18554
  • Open: 1.18690
  • % chg. over the last day: +0.23
  • Day's range: 1.18669 – 1.18898
  • 52 wk range: 1.0339 – 1.1909

At the moment, the majors are consolidating before the publication of the report on the labor market in the United States. The technical pattern is ambiguous. Preliminary data from ADP and statistics on business activity in the non-manufacturing sector of the US from ISM turned out to be weak. At the same time, experts expect an increase in the average hourly wage (0.3%) and a decrease in the unemployment rate to 4.3%. A positive report can strengthen investors' expectations about another increase in the Fed's interest rate. At the moment, the probability of tightening the monetary policy in December of this year is at the level of 42.2%. The key trading range on the EUR/USD currency pair is 1.18400-1.19000.

At 15:30 (GMT+3:00) a report on the labor market in the United States will be published.

EUR/USD

The EUR/USD quotes have fixed above 50 MA and 200 MA, which indicates the power of buyers.

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

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

Trading recommendations
  • Support levels: 1.18400, 1.18000, 1.17600
  • Resistance levels: 1.19000

Today we recommend reducing risks when opening positions.

If the statistics from the US turns out to be weak, the bullish sentiment may prevail on the EUR/USD currency pair. The movement is tending potentially to 1.19500-1.19750.

An alternative may be a downward trend in EUR/USD. The target level of movement is 1.18000-1.17600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32219
  • Open: 1.31362
  • % chg. over the last day: -0.60
  • Day's range: 1.31276 – 1.31642
  • 52 wk range: 1.1450 – 1.3447

The Bank of England, as expected, left the interest rate unchanged at 0.25%. The number of votes for tightening the monetary policy dropped to 2. The Chairman of the Central Bank is concerned about the future format of economic relations with the EU. These events put considerable pressure on the pound. The fall of the GBP/USD quotations exceeded 100 points. At the moment, the key trading range is 1.31250-1.32000. We are waiting for statistics from the USA.

The news background on the UK economy is calm today.

GBP/USD

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which act as strong dynamic levels of support and resistance.

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

Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31250, 1.30700
  • Resistance levels: 1.32000, 1.32600

If the report on the labor market in the US turns out to be positive, the downward trend in GBP/USD may continue. The movement is tending potentially to 1.30700.

An alternative may be the growth of GBP/USD to 1.32250-1.32600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25690
  • Open: 1.25696
  • % chg. over the last day: +0.02
  • Day's range: 1.25555 – 1.25846
  • 52 wk range: 1.2520 – 1.3795

At the moment, the technical pattern on USD/CAD is ambiguous. The currency is in a sideways trend. Participants of the financial markets adopted a wait-and-see approach before the publication of labor market reports in the US and Canada. The key support and resistance levels are 1.25500 and 1.26200 respectively. We recommend opening positions from these marks.

News background on Canada's economy:

  • - A report on the labor market at 15:30 (GMT+3:00);
  • - Ivey business activity index at 17:00 (GMT+3:00).
USD/CAD

The signals of the indicators are ambiguous. The price is between 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator has reached the oversold zone, the %K line has crossed the %D line. There are currently no signals.

Trading recommendations
  • Support levels: 1.25500, 1.24900
  • Resistance levels: 1.26200, 1.27000

We recommend waiting for the publication of the reports.

If the statistics from Canada is positive, the downward trend of the USD/CAD currency pair may continue. The movement is tending to 1.24900-1.24500.

An alternative may be a further correction of the USD/CAD quotations. The target level of movement is 1.26200-1.26500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.645
  • Open: 110.020
  • % chg. over the last day: -0.76
  • Day's range: 109.842 – 110.189
  • 52 wk range: 99.53 – 118.67

Yesterday, the bearish sentiment prevailed on USD/JPY. The yen increased against the US dollar by more than 70 points. This is due to a fall in the government bonds yield and the release of weak data on business activity in the non-manufacturing sector of the United States. At the moment, the price is testing a round level of 110.000. The 110.400 mark is already a "mirror" support. We are expecting a report on the labor market in the United States.

Today, the news background on the Japanese economy is calm.

USD/JPY

The price is below 50 MA and 200 MA, which indicates the power of sellers.

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

Stochastic Oscillator has fixed in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 110.000, 109.500
  • Resistance levels: 110.400, 110.900, 111.300

If the statistics from the US turns out to be positive, we recommend considering buying USD/JPY. The movement is tending potentially to 110.900-111.300.

Alternatively, USD/JPY may drop to 109.500-109.250.

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.