The Analytical Overview of the Main Currency Pairs on 2017.09.12

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.20151
  • Open: 1.19510
  • % chg. over the last day: -0.48
  • Day's range: 1.19452 – 1.19748
  • 52 wk range: 1.0341 – 1.2069

Yesterday, the US dollar moved away from local lows. Sales prevailed on EUR/USD. The euro weakened against the US dollar by more than 60 points. At the moment, the currency is testing the "mirror" resistance of 1.19750. The nearest support is at the level of 1.19250. The technical pattern is still ambiguous. We recommend opening positions from key levels.

The news background is rather calm today. At 17:00 (GMT+3:00) data on the number of open jobs in the JOLTS labor market will be released.

EUR/USD

The EUR/USD quotes are between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is 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 above the %D line, which signals the EUR/USD growth.

Trading recommendations
  • Support levels: 1.19250, 1.18750
  • Resistance levels: 1.19750, 1.20350

If the price consolidates below the local support of 1.19250, the correction of the EUR/USD currency pair may continue. The target movement level is 1.18750.

Alternative option. If the EUR/USD quotes overcome the "mirror" resistance of 1.19750, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to 1.20350.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31861
  • Open: 1.31606
  • % chg. over the last day: -0.21
  • Day's range: 1.31605 – 1.31948
  • 52 wk range: 1.1450 – 1.3447

At the moment, GBP/USD is consolidating. A unidirectional trend is not observed. The key support and resistance levels are still: 1.31500 and 1.32150, respectively. The positions need to be opened from these marks. We expect statistics from the UK.

At 11:30 (GMT+3:00), the report on inflation in the UK will be published.

GBP/USD

The price is testing 50 MA, which at the moment is quite strong dynamic support.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

Stochastic Oscillator is located near the overbought zone, the %K line crossed the %D line. There are no signals yet.

Trading recommendations
  • Support levels: 1.31500, 1.31000
  • Resistance levels: 1.32150

If the statistics from the UK turns out to be positive, further growth of the GBP/USD currency pair is possible. The movement is tending potentially to 1.32500-1.32750.

An alternative may be the fall of the GBP/USD quotes to 1.31250-1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21576
  • Open: 1.21119
  • % chg. over the last day: -0.35
  • Day's range: 1.20868 – 1.21226
  • 52 wk range: 1.2414 – 1.3795

The USD/CAD currency pair continues to be in a sideways trend. At the moment, the technical pattern is ambiguous. The key levels are still: support-1.20650; resistance-1.21600. We recommend opening positions from these marks. Support for the Canadian dollar is provided by the recovery of oil quotes.

The news background on Canada's economy is calm today.

USD/CAD

The price has fixed below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram is in the negative zone and continues to decline, which indicates the "bearish" sentiment on USD/CAD.

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

Trading recommendations
  • Support levels: 1.20650
  • Resistance levels: 1.21600, 1.22350

If the price consolidates below the key support of 1.20650, we recommend looking for entry points to the market to open short positions. The movement is tending potentially to the round level of 1.20000.

Alternative option. If the price consolidates above the resistance level of 1.21600, a correction may develop on the USD/CAD currency pair. The target movement level is 1.22350.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.224
  • Open: 109.383
  • % chg. over the last day: +1.06
  • Day's range: 109.238 – 109.595
  • 52 wk range: 99.53 – 118.67

Yesterday, aggressive purchases were observed on USD/JPY. The growth of quotes exceeded 1%. The demand for safe currencies has significantly weakened against the background of a decrease in geopolitical risks on the Korean peninsula. Also, the US dollar was supported by the growth in the US government bonds yield. At the moment, the key trading range is 109.000-109.600.

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

USD/JPY

Indicators point to the power of buyers. 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/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals an increase in USD/JPY.

Trading recommendations
  • Support levels: 109.000, 108.500
  • Resistance levels: 109.600, 110.250

We expect further growth of the USD/JPY currency pair. If the price consolidates above the level of 109.600, we recommend looking for entry points to the market to open long positions. The target movement level is 110.000-110.250.

Alternative option. If the price consolidates below the round level of 109.000, it is necessary to consider sales of USD/JPY. The movement is tending potentially to 108.500.

by JustForex, 2017.09.12

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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.