The Analytical Overview of the Main Currency Pairs on 2017.08.21

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17222
  • Open: 1.17554
  • % chg. over the last day: +0.32
  • Day's range: 1.17346 – 1.17629
  • 52 wk range: 1.0366 – 1.1616

Last week, EUR/USD was traded quite actively. At the same time, a unidirectional trend was not observed. The currency was in a sideways trend. The technical pattern is still ambiguous. At the moment, the key trading range is 1.17250-1.17650. The market is waiting for additional drivers. On the current trading week, investors will follow the summit in Jackson Hole, which will be held from 24 to 26 August. The main speakers will be the chairmen of the Fed and the ECB.

The Economic calendar on 2017.08.21:

The news background is calm today. The publication of important economic reports is not planned.

EUR/USD

Indicators do not send accurate signals. The price has crossed 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 started crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.17250, 1.16750
  • Resistance levels: 1.17650, 1.18250

Positions must be opened from the key levels.

If the price fixes above 1.17650, it is necessary to consider buying EUR/USD. The movement is tending to 1.18250.

Alternative option. If the EUR/USD quotes overcome the local support level of 1.17250, the bearish mood may prevail in the trading instrument. The target movement level is 1.16750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28649
  • Open: 1.28482
  • % chg. over the last day: +0.05
  • Day's range: 1.28445 – 1.28814
  • 52 wk range: 1.1986 – 1.5020

The bearish sentiment prevails on the GBP/USD currency pair. Last week, the pound weakened against the US dollar by more than 150 points. At the moment, the trading instrument is consolidating. The key support and resistance levels are 1.28500 and 1.29000 respectively. The currency has the potential to further decline.

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

GBP/USD

Indicators point to the power of sellers. The price is below 50 MA and 200 MA.

The MACD histogram has begun to decline and has moved to the negative zone, which signals a downward trend on GBP/USD.

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

Trading recommendations
  • Support levels: 1.28500, 1.28000
  • Resistance levels: 1.29000, 1.29600

We expect a further drop in GBP/USD. If the price fixes below 1.28500, sales should be considered. The movement is tending to the round level of 1.28000.

Alternative option. If the GBP/USD quotes fix above the resistance level of 1.29000, it is necessary to consider purchases. The movement is tending to 1.29600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32594
  • Open: 1.32102
  • % chg. over the last day: -0.02
  • Day's range: 1.31967 – 1.32611
  • 52 wk range: 1.2458 – 1.4692

On Friday, aggressive sales were observed on the USD/CAD currency pair. The Canadian dollar was supported by a significant increase in the oil quotes. The trading instrument found support at around 1.25650. At the moment, the technical pattern is ambiguous. In the near future, we do not exclude a technical correction. A fairly strong reversal formation of technical analysis, the price and MACD histogram divergence, was formed on USD/CAD.

At 15:30 (GMT+3:00) the data on the volume of wholesale sales in Canada will be released.

USD/CAD

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

The MACD histogram has begun to rise and is above the signal line, which signals a correction of the USD/CAD quotes.

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

Trading recommendations
  • Support levels: 1.25650
  • Resistance levels: 1.26250, 1.26800

If the price fixes below the support level of 1.25650, the downward trend in USD/CAD may continue. The movement is tending to 1.25250-1.25000.

Alternative option. If the price fixes above the level of 1.26250, we recommend considering buying USD/CAD. The immediate goal for profit-taking is 1.26800.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.566
  • Open: 109.334
  • % chg. over the last day: -0.35
  • Day's range: 108.918 – 109.424
  • 55 wk range: 99.08 – 123.69

On Friday, trading on USD/JPY was very active. However, a unidirectional trend was not observed. At the moment, the currency is testing key support and resistance levels: 108.750 and 109.450, respectively. The technical pattern is ambiguous. Positions must be opened from the key levels. We recommend paying attention to the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

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

The MACD histogram is located in the negative zone and continues to decline, which signals a bearish sentiment on USD/JPY.

Stochastic Oscillator is located near the oversold zone, the % line is below the %D line, which gives a weak signal to sell USD/JPY.

Trading recommendations
  • Support levels: 108.750
  • Resistance levels: 109.450, 110.000

If the price fixes below the local support of 108.750, we recommend considering selling USD/JPY. The movement is tending to 108.250.

Alternative option. If the USD/JPY quotes overcome the level of 109.450, it is necessary to search for entry points in the market to open long positions. The target movement level is 110.000.

by JustForex, 2017.08.21

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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.