The Analytical Overview of the Main Currency Pairs on 2018.07.18

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17101
  • Open: 1.16596
  • % chg. over the last day: -0.49
  • Day's range: 1.16251 – 1.16649
  • 52 wk range: 1.0571 – 1.2557

The bearish sentiment prevails on the EUR/USD currency pair. During yesterday's and today's trading sessions, the drop in quotations has counted to 80 points. Demand for the American currency grew after the speech by the Fed's head. The regulator noted the stability of the labor market and his plans for a gradual increase in the key interest rate. At the moment, the key trading range is 1.16250-1.16500. We recommend opening positions from these marks. We are waiting for important economic reports.

The news feed on 2018.07.18:
  • - The consumer price index in the Eurozone at 12:00 (GMT+3:00);
  • - Statistics on the real estate market in the US at 15:30 (GMT+3:00);
  • - The Fed's "Beige book" at 21:00 (GMT+3:00).

We also recommend paying attention to the speech by the Fed's head.

EUR/USD

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

The MACD histogram is located in the negative zone and below the signal line, which gives a strong signal to sell EUR/USD.

Stochastic Oscillator is in oversold zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.16250, 1.16000, 1.15500
  • Resistance levels: 1.16500, 1.16750, 1.17000

If the price fixes below the support level of 1.16250, further decline in EUR/USD is expected. The movement is tending to 1.16000-1.15500.

Alternative option. If the price fixes above 1.16500, we recommend you to look for entry points to open long positions. The target movement level is 1.16750-1.17000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32330
  • Open: 1.31103
  • % chg. over the last day: -0.99
  • Day's range: 1.30793 – 1.31169
  • 52 wk range: 1.2361 – 1.4345

Yesterday aggressive sales were observed on the GBP/USD currency pair. The drop in quotations exceeded 130 points. Demand for the US dollar has grown significantly after the statements by the Fed's head. Additional pressure on the pound was caused by a weak report on the labor market in the UK. At the moment, GBP/USD is testing the local support and resistance levels: 1.30750 and 1.31150, respectively. The positions must be opened from these marks.

At 11:30 (GMT+3:00), the UK consumer price index will be published.

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 indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.30750, 1.30250, 1.30000
  • Resistance levels: 1.31150, 1.31700, 1.32000

If the price falls below the support level of 1.30750, further fall of the GBP/USD currency pair is expected. The movement is tending to 1.30300-1.30000.

Alternative option. If the price fixes above 1.31150, it is necessary to consider buying GBP/USD. The movement is tending to 1.31500-1.31700.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31367
  • Open: 1.31928
  • % chg. over the last day: +0.52
  • Day's range: 1.31907 – 1.32453
  • 52 wk range: 1.2059 – 1.3795

At the moment there are aggressive purchases of USD/CAD. During yesterday's and today's trading, the growth of quotations exceeded 100 points. The trading instrument has updated a monthly maximum. At the moment the USD/CAD quotes are testing the local resistance of 1.32400. The mark of 1.32150 is already a "mirror" support. The currency pair is tending to grow. We recommend opening positions from the key levels.

The news feed on Canada's economy is calm.

USD/CAD

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 and above the signal line, which gives a strong signal to buy USD/CAD.

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

Trading recommendations
  • Support levels: 1.32150, 1.31850, 1.31550
  • Resistance levels: 1.32400, 1.33000

If the price fixes above the local resistance of 1.32400, further growth of the USD/CAD currency pair is expected. The movement is tending to the round level of 1.33000.

Alternative option. If the price fixes below the "mirror" support of 1.32150, a correction movement is expected. The target level of movement is 1.31850-1.31700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.269
  • Open: 112.858
  • % chg. over the last day: +0.65
  • Day's range: 112.833 – 113.137
  • 52 wk range: 104.56 – 114.74

USD/JPY continues to show positive dynamics. Currently, quotes are testing monthly highs. The key trading range is 112.800-113.100. In the near future, a technical correction is not ruled out. We recommend paying attention to the news feed from the USA. Positions must be opened from the key levels.

The publication of important economic reports from Japan is not planned.

USD/JPY

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/JPY.

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

Trading recommendations
  • Support levels: 112.800, 112.500, 112.200
  • Resistance levels: 113.100, 113.500

If the price fixes above the 113.100 level, you should consider buying USD/JPY. The movement is tending to 113.500-113.750.

Alternative option. If the price falls below the "mirror" support level of 112.800, the correction of the USD/JPY currency pair is expected. The target level of movement is 112.500-112.300.

by JustForex, 2018.07.18

We recommend you to get acquainted with the daily overview of the news feed.

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.

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