The Analytical Overview of the Main Currency Pairs on 2017.07.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13617
  • Open: 1.13408
  • % chg. over the last day: -0.04
  • Day's range: 1.13258 – 1.13691
  • 52 wk range: 1.0366 – 1.1616

Yesterday, trades on EUR/USD were calm. A significant change in the rate did not occur. The currency formed a local support of 1.13300. The nearest resistance is 1.13750. At the moment, the technical pattern on majors is ambiguous. The financial markets participants are waiting for the publication of the FOMC protocols, which may indicate the possibility of tightening the Fed's monetary policy this year. Positions must be opened from the key levels.

News background on 2017.07.05:
  • – Statistics on business activity in the Eurozone at 11:00 (GMT+3:00);
  • – The volume of industrial orders in the US at 17:00 (GMT+3:00);
  • – Publication of the FOMC protocols at 21:00 (GMT+3:00).
EUR/USD

Indicators do not send accurate signals. The price crossed 50 MA.

The MACD histogram has fixed near the 0 mark.

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: 1.13300, 1.12800
  • Resistance levels: 1.13750, 1.14400

If the price fixes below the local support of 1.13300, the correction on the EUR/USD currency pair may continue. The movement is tending potentially to 1.12800.

Alternative option. If the EUR/USD quotes overcome the level of 1.13750, we recommend considering buying. The target movement level is 1.14250-1.14400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29344
  • Open: 1.29160
  • % chg. over the last day: -0.01
  • Day's range: 1.29071 – 1.29474
  • 52 wk range 1.1986 – 1.5020

The GBP/USD currency pair continues to consolidate. The technical pattern is ambiguous. The key trading range is still 1.29200-1.29600. This week, we published weak reports on business activity in the UK, which put pressure on the pound. We recommend paying attention to the news background from the USA.

At 11:30 (GMT+3:00) the data on the index of business activity in the services sector of Great Britain will be released.

GBP/USD

The price is between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

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

Stochastic Oscillator has fixed near the oversold zone, the %K line crossed the %D line. There are currently no signals.

Trading recommendations
  • Support levels: 1.29200, 1.28300
  • Resistance levels: 1.29600, 1.30250

If the price fixes below the local support 1.29200, we recommend you to look for entry points to the market in order to open short positions. The movement is tending potentially to 1.28750-1.28300. When following a position, one should use a trailing stop.

Alternative option. If the statistics from the UK is positive and the price overcomes the local resistance of 1.29600, a bullish sentiment may prevail on the GBP/USD currency pair. The movement is tending potentially to 1.30250.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29899
  • Open: 1.29319
  • % chg. over the last day: -0.58
  • Day's range: 1.29248 – 1.29442
  • 52 wk range: 1.2458 – 1.4692

During yesterday's trading, the downward trend in USD/CAD continued. The currency held the local resistance at 1.30100, which triggered aggressive sales. The fall in the USD/CAD quotations exceeded 0.50%. Trading in the Asian session was calm. At the moment, the key trading range is 1.29150-1.29750.

There are no important economic reports from Canada today.

USD/CAD

The USD/CAD quotes have fixed below 50 MA and 200 MA, which indicates the strength of sellers.

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals a further drop in the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.29150
  • Resistance levels: 1.29750, 1.30500

If the price fixes below the local support 1.29150, the downward trend in USD/CAD may continue. The immediate goal for profit-taking is 1.28750.

Alternative option. If the USD/CAD quotes overcome the resistance of 1.29750, a correction may develop. The movement is tending potentially to 1.30100-1.30500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.327
  • Open: 113.154
  • % chg. over the last day: -0.37
  • Day's range: 112.823 – 113.411
  • 52 wk range: 99.08 – 123.69

At the moment the bullish sentiment is prevailing on USD/JPY. The currency tests the local resistance at 113.450. The key support is 112.800. Investors are waiting for the publication of the FOMC protocols.

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

USD/JPY

The USD/JPY quotes have fixed above 50 MA and 200 MA, which indicates the strength of buyers.

The MACD histogram has begun to rise and moved to the positive zone, which signals a further increase in USD/JPY.

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

Trading recommendations
  • Support levels: 112.800, 112.150
  • Resistance levels: 113.450

We expect further growth of USD/JPY. If the price fixes above the resistance level of 113.450, we recommend looking for entry points to the market in order to open long positions. The movement is tending potentially to 113.750-114.000. When following a position, one should use a trailing stop.

by JustForex, 2017.07.05

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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.