The Analytical Overview of the Main Currency Pairs on 2017.09.19

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19218
  • Open: 1.19484
  • % chg. over the last day: +0.18
  • Day's range: 1.19484 – 1.20061
  • 52 wk range: 1.0341 – 1.2069

Investors are waiting for the Fed's comments on the results of the two-day meeting (September 19-20). The regulator may indicate the time frames of tightening the monetary policy. At the moment the bullish sentiment prevails on EUR/USD. The price is testing the local resistance of 1.19850. We are awaiting the publication of important economic reports.

News background on 2017.09.19:

  • - The ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+3:00);
  • - Statistics on the real estate market in the US at 15:30 (GMT+3:00);
  • - Data on trade in the USA at 15:30 (GMT+3:00).
EUR/USD

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

The MACD histogram is located in the positive zone and continues to rise, which indicates the power of buyers.

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

Trading recommendations
  • Support levels: 1.19200, 1.18650
  • Resistance levels: 1.19850, 1.20250, 1.20750

If economic reports from the US are weak, a bullish sentiment may prevail on the EUR/USD currency pair. The target level of movement is 1.20250-1.20750. When following a position, one should use a trailing stop.

Alternatively, EUR/USD may drop to 1.19200-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35597
  • Open: 1.34927
  • % chg. over the last day: -0.46
  • Day's range: 1.34907 – 1.35526
  • 52 wk range: 1.1450 – 1.3447

Yesterday there was a technical correction on GBP/USD. The pound weakened against the US dollar by more than 60 points. The currency found support at 1.34750. At the moment, the price is testing a "mirror" resistance of 1.35350. The trading instrument has the potential for further correction. The attention is focused on economic reports from the United States.

The news background on the UK economy is calm today.

GBP/USD

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

The MACD histogram has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.34750, 1.34000
  • Resistance levels: 1.35350, 1.36000

If the statistics from the US turns out to be positive, the correction on the GBP/USD currency pair may continue. The movement is tending to 1.34750-1.34000.

An alternative may be the growth of GBP/USD to a round level of 1.36000.

When tracking the position, we recommend using a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21858
  • Open: 1.22891
  • % chg. over the last day: +0.68
  • Day's range: 1.22734 – 1.23086
  • 52 wk range: 1.2414 – 1.3795

During yesterday's trading, aggressive purchases were observed on USD/CAD. The growth of quotations exceeded 100 points. At the moment, the currency is consolidating in the range 1.22750-1.23100. The US dollar is supported by the growth in the government bonds yield. We are waiting for statistics on the US economy.

At 15:30 (GMT+3:00) data on sales in the manufacturing sector of Canada will be published.

USD/CAD

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/CAD.

Stochastic Oscillator has left the overbought zone, the %K line is below the %D line, which indicates the USD/CAD price drop.

Trading recommendations
  • Support levels: 1.22750, 1.22300
  • Resistance levels: 1.23100, 1.23750

If the statistics from the US turns out to be positive, the growth of the USD/CAD currency pair may continue. The movement is tending to 1.23750.

The alternative may be falling of the USD/CAD quotations to the "mirror" support level of 1.22300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.070
  • Open: 111.518
  • % chg. over the last day: +0.28
  • Day's range: 111.375 – 111.879
  • 52 wk range: 99.53 – 118.67

The "safe haven" currency continues to lose ground against the US dollar. Yesterday the growth of the USD/JPY quotations exceeded 50 points. At the moment, the price is testing local resistance at 111.850. The level of 111.250 is already a "mirror" support. It is necessary to pay attention to the yield of government bonds and economic reports from the United States.

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

USD/JPY

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

The MACD histogram is located in the positive zone and continues to rise, indicating a bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 111.250, 110.700
  • Resistance levels: 111.850, 112.250

If economic reports from the US are optimistic, you should consider buying USD/JPY. The target movement level is 112.250-112.500.

An alternative may be the correction of the USD/JPY quotations to the level of 111.250-111.000.

by JustForex, 2017.09.19

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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.