The Analytical Overview of the Main Currency Pairs on 2017.08.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18690
  • Open: 1.17721
  • % chg. over the last day: -0.83
  • Day's range: 1.17661 – 1.18017
  • 52 wk range: 1.0339 – 1.1909

Positive statistics on the labor market in the US supported the US currency. The dollar index (# DX) finished trading session in the positive zone (+0.77%). In July, 209,000 jobs were created in the non-agricultural sector of the United States. Experts expected the indicator to be at 183000. The average hourly earnings rose by 0.3%. The unemployment rate fell to 4.3%. This report strengthened expectations of another increase in the Fed's interest rate in 2017 among participants of the financial markets. At the moment, the key trading range on EUR/USD is 1.17350-1.18000.

Today, we recommend you to pay attention to the speeches of the FOMC representatives Bullard and Kashkari - 18:45 (GMT+3:00) and 20:25 (GMT+3:00).

EUR/USD

Indicators do not send accurate signals. The EUR/USD quotes have fixed between 50 MA and 200 MA, which are quite strong dynamic support and resistance levels.

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

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating drop in the EUR/USD quotes.

Trading recommendations
  • Support levels: 1.17750, 1.17350
  • Resistance levels: 1.18000, 1.18400

We believe that the downward trend on EUR/USD may continue. If the price consolidates below the level of 1.17750, we recommend considering selling. The immediate goal for profit-taking is 1.17350. When tracking a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31362
  • Open: 1.30306
  • % chg. over the last day: -0.78
  • Day's range: 1.30291 – 1.30601
  • 52 wk range: 1.1450 – 1.3447

On Friday, aggressive sales were observed on the GBP/USD currency pair. The pound weakened against the US dollar by more than 100 points. The US currency was supported by an optimistic report on the labor market in the United States. The currency formed a local support at 1.30250. The closest resistance is the level of 1.30600.

The news background on the UK economy is calm today.

GBP/USD

Indicators indicate the power of sellers. The price has fixed below 50 MA and 200 MA.

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 in the neutral zone, the %K line is below the %D line, which signals the bearish sentiment on GBP/USD.

Trading recommendations
  • Support levels: 1.30250, 1.30000
  • Resistance levels: 1.30600, 1.31250

If the price consolidates below the local support of 1.30250, we recommend looking for entry points to the market to open short positions. The target movement level is to 1.30000-1.29750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25696
  • Open: 1.26384
  • % chg. over the last day: +0.52
  • Day's range: 1.26288 – 1.26696
  • 52 wk range: 1.2414 – 1.3795

There is a corrective movement on the USD/CAD currency pair. Over the past week, the Canadian dollar weakened against the US dollar by more than 225 points. At the moment, the price is testing the local resistance of 1.26700. The 1.26200 mark is already a "mirror" support. We recommend paying attention to the dynamics of oil quotes.

Canadian financial markets are closed today due to the holiday.

USD/CAD

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

The MACD histogram is in the positive zone and above the signal line, which indicates a further correction of the USD/CAD currency pair.

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

Trading recommendations
  • Support levels: 1.26200, 1.25500
  • Resistance levels: 1.26700, 1.27000

If the price consolidates above the local resistance of 1.26700, we recommend to consider buying USD/CAD. The target movement level is to 1.27000-1.27250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.020
  • Open: 110.689
  • % chg. over the last day: +0.58
  • Day's range: 110.641 – 110.850
  • 52 wk range: 99.53 – 118.67

At the moment, bullish sentiment prevailed on USD/JPY. During Friday trading, the growth of quotes exceeded 0.5%. The currency reached a key resistance of 110.900. The 110.400 level is already a "mirror" support. The further growth of the USD/JPY currency pair is possible. We recommend to pay attention to the yield of US government bonds.

There are no important news on the economy of Japan today.

USD/JPY

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

The MACD histogram is in the positive zone and continues to rise, which signals growth of USD/JPY quotes.

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

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

We expect a further growth of the USD/JPY currency pair. If the price consolidates above the 110.900 level, we recommend to look for the entry points to the market to open long positions. The immediate goal for profit-taking is 111.300.

by JustForex, 2017.08.07

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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