The Analytical Overview of the Main Currency Pairs on 2017.10.25

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17487
  • Open: 1.17599
  • % chg. over the last day: +0.09
  • Day's range: 1.17531 – 1.17700
  • 52 wk range: 1.0341 – 1.2069

Since the beginning of this week, the EUR/USD currency pair is in a sideways trend. Investors took a wait-and-see attitude before the ECB meeting, which will be held on Thursday, October 26. At the moment the EUR/USD quotations are consolidating in a rather narrow range of 1.17550-1.17750. We recommend opening positions from these marks. The attention is focused on the economic reports from Germany and the United States.

News background on the 2017.10.25:

  • - The IFO business climate index at 11:00 (GMT+3:00);
  • - The statistics on orders for durable goods in the US at 15:30 (GMT+3:00);
  • - Sales of new housing in the US at 17:00 (GMT+3:00).
EUR/USD

The indicators don't send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals the purchase of EUR/USD.

Trading recommendations
  • Support levels: 1.17550, 1.17350, 1.17000
  • Resistance levels: 1.17750, 1.18250, 1.18550

If the price fixes below 1.17550, we recommend considering sales of EUR/USD. The movement is tending to 1.17350-1.17000.

Alternative option. If the price fixes above the local resistance of 1.17750, you need to look for entry points to the market to open long positions. The target movement level is 1.18000-1.18250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31962
  • Open: 1.31322
  • % chg. over the last day: -0.50
  • Day's range: 1.31101 – 1.31392
  • 52 wk range: 1.1450 – 1.3618

Yesterday, the bearish sentiment prevailed on the GBP/USD currency pair. The pound weakened against the US dollar by more than 75 points. At the moment, the trading instrument is consolidating. Investors expect preliminary data on the UK GDP at 11:30 (GMT+3:00). The key trading range is 1.31000-1.31600.

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

GBP/USD

Indicators point to 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 located in the neutral zone, the %K line is below the %D line, which also signals the sale of GBP/USD.

Trading recommendations
  • Support levels: 1.31000, 1.30500
  • Resistance levels: 1.31600, 1.32250, 1.32650

If the statistics from the UK turns out to be weak, we recommend considering selling GBP/USD. The movement is tending to 1.30500-1.30250.

An alternative may be the growth of GBP/USD to a round level of 1.32000.

When tracking positions, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26438
  • Open: 1.26732
  • % chg. over the last day: +0.16
  • Day's range: 1.26685 – 1.26873
  • 52 wk range: 1.2059 – 1.3795

On the USD/CAD currency pair, the bullish sentiment still prevails. Nevertheless, the correction is not ruled out in the near future. A sufficiently strong reversal formation of technical analysis, the price and MACD histogram divergence, has been formed in the trading instrument. The key trading range is 1.26600-1.26900.

Investors are expecting a meeting of the Bank of Canada at 17:00 (GMT+3:00). Experts believe that the regulator will leave the interest rate at the previous level of 1.00%. We recommend you to pay attention to the comments of the Central Bank representatives.

USD/CAD

The signals of the indicators are different. The price has fixed above 50 MA and 200 MA.

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates the correction of the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.26600, 1.26200, 1.25750
  • Resistance levels: 1.27000, 1.27500

If the price fixes above 1.26900, the further growth of the USD/CAD currency pair is expected. The movement is tending to 1.27500-1.27750.

Alternative option. If the USD/CAD rate overcomes the support level of 1.26600, it is necessary to look for entry points to the market for opening short positions. The movement is tending to 1.26200-1.26000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.428
  • Open: 113.898
  • % chg. over the last day: +0.44
  • Day's range: 113.740 – 113.977
  • 52 wk range: 99.53 – 118.67

At the moment, there is an ambiguous technical pattern on the USD/JPY currency pair. The trading instrument is testing the key support and resistance levels: 113.600 and 114.000, respectively. Positions should be opened if the price fixes above/below these markers. We recommend paying attention to the statistics and dynamics of the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

The price has fixed above 50 MA and 200 MA, which indicates 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/JPY.

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

Trading recommendations
  • Support levels: 113.600, 113.100
  • Resistance levels: 114.000, 114.500

If the price fixes above the round level of 114.000, it is necessary to consider buying USD/JPY. The movement is tending potentially to 114.500.

Alternative option. If the price fixes below the 113.600 mark, we recommend you to look for entry points to the market to open short positions. The target movement level is 113.100-113.000.

by JustForex, 2017.10.25

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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.