The Analytical Overview of the Main Currency Pairs on 2017.08.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17782
  • Open: 1.17351
  • % chg. over the last day: -0.34
  • Day's range: 1.17236 – 1.17480
  • 52 wk range: 1.0339 – 1.1909

At the moment, the demand for the US dollar is at a fairly high level. Sales prevail on the EUR/USD currency. Yesterday, positive statistics supported the US currency. In July, retail sales in the US increased by 0.6%, which is more than the forecasted value of 0.4%. The key trading range is 1.17000-1.17650. Today the attention is focused on the publication of the FOMC protocols.

The news background on 2017.08.16:

  • – The Eurozone GDP data at 12:00 (GMT+3:00);
  • – Statistics on the real estate market in the US at 15:30 (GMT+3:00);
  • – Publication of the FOMC protocols at 21:00 (GMT+3:00).
EUR/USD

The price is below 50 MA and 200 MA, which signals 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 EUR/USD.

Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, which indicates the EUR/USD quotes falling.

Trading recommendations
  • Support levels: 1.17000
  • Resistance levels: 1.17650, 1.18000

We recommend opening positions from the key levels.

If the statistics from the Eurozone turns out to be weak, it is necessary to consider sales of EUR/USD. The movement is tending potentially to 1.17000-1.16750.

An alternative may be the growth of the EUR/USD quotations to the level of 1.17650-1.18000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29573
  • Open: 1.28621
  • % chg. over the last day: -0.75
  • Day's range: 1.28495 – 1.28778
  • 52 wk range: 1.1450 – 1.3447

The bearish sentiment prevails on the GBP/USD currency pair. Yesterday, the pound weakened against the US dollar by more than 100 points. In July, consumer prices in the UK decreased by 0.1%. It should be recalled that previously the Bank of England published a weak forecast for the GDP and wages growth in the country. These events put pressure on the pound. At the moment, the GBP/USD currency pair is consolidating in a rather narrow range of 1.28500-1.28800.

At 11:30 (GMT+3:00) a report on the labor market in the UK will be published.

GBP/USD

The price has fixed 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 GBP/USD.

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

Trading recommendations
  • Support levels: 1.28500
  • Resistance levels: 1.29600, 1.30000

If the report on the UK labor market is positive, a correction may occur on the GBP/USD currency pair. The target level of movement is 1.29250-1.29600.

An alternative may be a further drop in GBP/USD. The movement is tending potentially to the round level of 1.28000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27154
  • Open: 1.27537
  • % chg. over the last day: +0.26
  • Day's range: 1.27367 – 1.27704
  • 52 wk range: 1.2414 – 1.3795

Yesterday, the US dollar continued to recoup against the Canadian dollar. The growth of the USD/CAD quotations exceeded 50 points. Nevertheless, at the moment the technical pattern is ambiguous. The currency found resistance at 1.27750. Local support is the level of 1.27350. We are waiting for statistics from the USA.

Today, the news background on Canada's economy is calm. At 15:30 (GMT+3:00) there will be data on the volume of foreign investments in Canadian securities.

USD/CAD

The signals of the indicators vary. The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has begun to decline and is below the signal line, which signals a fall in the USD/CAD quotes.

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

Trading recommendations
  • Support levels: 1.27350, 1.26750
  • Resistance levels: 1.27750

If the price fixes above the local resistance of 1.27750, further growth of the USD/CAD currency pair is possible. The movement is tending to 1.28000-1.28500.

Alternative option. If the USD/CAD quotes overcome the level of 1.27350, we recommend considering sales. The target level of movement is 1.27000-1.26750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.621
  • Open: 110.647
  • % chg. over the last day: +0.87
  • Day's range: 110.533 – 110.934
  • 52 wk range: 99.53 – 118.67

Yesterday, USD/JPY saw aggressive purchases. The yen lost more than 100 points in price. The US currency was supported a positive report on retail sales and growth in the US government bonds yield. At the moment USD/JPY is testing the key offer zone of 110.750-111.000. The nearest support is at the level of 110.400.

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

USD/JPY

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

The MACD histogram is located in the positive zone and continues to rise, which signals an increase in USD/JPY.

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: 111.000, 111.500

If the statistics from the US is positive, we recommend considering buying USD/JPY. The target movement level is 111.500.

Alternatively, USD/JPY may drop to the level of 110.400-110.000.

by JustForex, 2017.08.16

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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.