The Analytical Overview of the Main Currency Pairs on 2017.08.31

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19717
  • Open: 1.18830
  • % chg. over the last day: -0.68
  • Day's range: 1.18669 – 1.19028
  • 52 wk range: 1.0339 – 1.1909

The US dollar continued to recover against the majors. Positive economic reports supported the US currency. According to the ADP, in August, 237,000 jobs were created in the non-agricultural sector of the country. Experts expected the figure at 183000. The country's GDP growth in the second quarter was revised from 2.6% to 3.0%. Yesterday, the drop in the EUR/USD quotations exceeded 90 points. At the moment, the key trading range is 1.18700-1.19250.

Today we recommend you to pay attention to the following economic reports:

  • – Statistics on the German labor market at 10:55 (GMT+3:00);
  • – A preliminary report on inflation in the Eurozone at 12:00 (GMT+3:00);
  • – Expenditure of individuals in the US at 15:30 (GMT+3:00);
  • – The index of pending sales in the US real estate market at 17:00 (GMT+3:00).
EUR/USD

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

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the growth of the EUR/USD quotes.

Trading recommendations
  • Support levels: 1.18700, 1.18250, 1.17800
  • Resistance levels: 1.19250, 1.19750

Today, we recommend opening positions from key levels.

If the price fixes below 1.18700, it is necessary to consider sales of EUR/USD. The movement is tending to 1.18250-1.17800.

Alternative option. If the EUR/USD quotes overcome the level of 1.19250, we recommend looking for entry points to the market to open long positions. The target movement level is 1.19750.

When tracking a position, one should use a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29145
  • Open: 1.29190
  • % chg. over the last day: +0.01
  • Day's range: 1.28972 – 1.29300
  • 52 wk range: 1.1450 – 1.3447

At the moment, there is an ambiguous technical pattern on GBP/USD. The currency is consolidating. The market is waiting for additional drivers. The key levels of support and resistance are 1.29000 and 1.29350 respectively. We recommend opening positions from these marks.

There are no important economic reports from the UK today.

GBP/USD

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

The MACD histogram has begun to decline and moved to the negative zone, which indicates a bearish sentiment 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: 1.29000, 1.28600
  • Resistance levels: 1.29350, 1.29750

If the statistics from the US is positive, we recommend considering selling GBP/USD. The target movement level is 1.28600.

An alternative may be the growth of GBP/USD to 1.29600-1.29750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25113
  • Open: 1.26183
  • % chg. over the last day: +0.96
  • Day's range: 1.26183 – 1.26627
  • 52 wk range: 1.2414 – 1.3795

Yesterday aggressive purchases were observed on USD/CAD. The growth of quotations exceeded 120 points. In the Asian trading session, the Canadian dollar continued to lose ground against the US dollar. The key trading range is 1.26000-1.26600. At the moment, investors have adopted a wait-and-see attitude before the publication of Canada's GDP report at 15:30 (GMT+3:00). Pressure on the Canadian dollar is put by a negative dynamics of the oil quotes.

We recommend paying attention to the news line from the USA.

USD/CAD

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

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

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

Trading recommendations
  • Support levels: 1.26000, 1.25300
  • Resistance levels: 1.26600, 1.27000

If the statistics from Canada proves to be weak, the growth of the USD/CAD quotes may continue. The movement is tending to the round level of 1.27000.

An alternative may be a reduction of the USD/CAD currency pair to the level of 1.26000-1.25700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.577
  • Open: 110.228
  • % chg. over the last day: +0.66
  • Day's range: 110.174 – 110.621
  • 52 wk range: 99.53 – 118.67

Currently, the bullish sentiment prevails on USD/JPY. Yesterday, the "safe haven" currency weakened against the US dollar by more than 70 points. The key levels of support and resistance are 110.200 and 110.600 respectively. The trading instrument has the potential for further growth. We recommend paying attention to the US government bonds yield.

In July, industrial production in Japan fell by 0.8%. Experts expected a fall of 0.5%.

USD/JPY

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

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals a fall in USD/JPY.

Trading recommendations
  • Support levels: 110.200, 109.700, 108.850
  • Resistance levels: 110.600, 111.000

If the price fixes above the local resistance of 100.600, further growth of the USD/JPY currency pair is possible. The immediate goal for profit taking is the round level of 111.000.

Alternative option. If the statistics from the US turns out to be weak, a correction may develop on the USD/JPY currency pair. The movement is tending to 110.000-109.800.

by JustForex, 2017.08.31

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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.