The Analytical Overview of the Main Currency Pairs on 2017.10.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17864
  • Open: 1.18523
  • % chg. over the last day: +0.52
  • Day's range: 1.17909 – 1.18579
  • 52 wk range: 1.0341 – 1.2069

Today in the Asian trading session, aggressive sales were observed on EUR/USD. Demand for the US currency is supported by positive economic reports and growth in the US government bonds yield. In October, the index of manufacturing activity of the Federal Reserve Bank of Philadelphia increased from 23.8 to 27.9. Experts expected the fall of the indicator to 22.0. At the moment, the EUR/USD currency pair is consolidating in the range of 1.18000-1.18250. We recommend opening positions from these marks.

At 17:00 (GMT+3:00) we expect statistics on the real estate market in the US.

EUR/USD

Indicators do not send accurate signals. The price has crossed 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.18000, 1.17800, 1.17450
  • Resistance levels: 1.18250, 1.18750

If the price fixes below the round level of 1.18000, it is necessary to consider sales of EUR/USD. The movement is tending to 1.17450.

Alternative option. If the price fixes above 1.18250, we recommend considering buying EUR/USD. The target movement level is 1.18550-1.18750.

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

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32029
  • Open: 1.31579
  • % chg. over the last day: -0.40
  • Day's range: 1.30878 – 1.31618
  • 52 wk range: 1.1450 – 1.3618

On the GBP/USD currency pair, the "bearish" sentiment still prevails. The pound remains under pressure due to weak economic reports. Yesterday, the National Statistical Office of Great Britain reported that in September the volume of retail sales in the country decreased by 0.8%. Experts expected the index to fall by 0.1%. At the moment, the key trading range is 1.31000-1.31600. The trading instrument has the potential to further reduce.

The news background on the UK economy is calm today.

GBP/USD

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

The MACD histogram is in the negative zone and below the signal line, which indicates a bearish sentiment on GBP/USD.

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

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

If the price fixes below the round level of 1.31000, you need to look for entry points to the market to open short positions. The movement is tending to 1.30500.

Alternative option. If the price fixes above the "mirror" resistance of 1.31600, we recommend considering buying GBP/USD. The target movement level is 1.32000-1.32250.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24652
  • Open: 1.24847
  • % chg. over the last day: +0.11
  • Day's range: 1.24764 – 1.25197
  • 52 wk range: 1.2059 – 1.3795

At the moment, the USD/CAD currency pair is consolidating. Investors took a wait-and-see attitude before the publication of reports on inflation and retail sales in Canada at 15:30 (GMT+3:00). The following key levels of support and resistance can be identified: 1.25000 and 1.25250. Positions should be opened if the price fixes above/below these markers.

We recommend paying attention to the news background on the US economy.

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 and above the signal line, which signals the purchase of USD/CAD.

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

Trading recommendations
  • Support levels: 1.25000, 1.24500
  • Resistance levels: 1.25250, 1.25750

If the statistics from Canada proves to be weak, we recommend considering buying USD/CAD. The target movement level is 1.25750-1.25900.

Alternatively, USD/CAD may drop to 1.24500-1.24350.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.930
  • Open: 112.577
  • % chg. over the last day: -0.23
  • Day's range: 112.508 – 113.469
  • 52 wk range: 99.53 – 118.67

Today there are aggressive purchases on USD/JPY. In the Asian trading session, the yen weakened against the US dollar by more than 90 points. At the moment, the price is testing the local resistance at 113.450. The round level of 113.000 is already a "mirror" support. The trading instrument has the potential for further growth. We recommend paying attention to the news background and the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

The USD/JPY quotes have fixed above 50 MA and 200 MA, it signals about the power of buyers.

The MACD histogram is located in the positive zone and above the signal line, which indicates a bullish sentiment on USD/JPY.

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

Trading recommendations
  • Support levels: 113.100, 112.850, 112.450
  • Resistance levels: 113.450, 114.000

We recommend opening positions in the direction of the current trend. If the price fixes above the local resistance of 113.450, it is necessary to consider buying USD/JPY. The movement is tending potentially to 113.750-114.000. Conservative traders are advised to wait for a technical correction.

by JustForex, 2017.10.20

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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.