The Analytical Overview of the Main Currency Pairs on 2018.09.27

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17654
  • Open: 1.17362
  • % chg. over the last day: -0.21
  • Day's range: 1.16906 – 1.17570
  • 52 wk range: 1.0571 – 1.2557

The Fed, as expected, raised the key interest rate range by 25 basis points to 2.00% -2.25%. The regulator improved the forecast of GDP growth for 2018-2019. The head of the Central Bank, Jerome Powell, also said that the rejection of identifying the monetary policy as "stimulating" in the communique is not a signal of a change in the Fed's current policy rate. At the moment the EUR/USD quotes show negative dynamics. The trading instrument is consolidating in the range of 1.16850-1.17100. The EUR/USD currency pair is tending to decrease.

The news feed on the US economy for 2018.09.27
  • - A report on GDP at 15:30 (GMT+3:00);
  • - The index of pending sales in the real estate market at 17:00 (GMT+3:00).

We also recommend paying attention to the speech by the heads of the ECB and the US Federal Reserve System.

EUR/USD

Indicators point to the power of sellers: the price has fixed below 50 MA and 200 MA.

The MACD histogram has moved to the negative zone and is below the signal line, which gives a strong signal to sell EUR/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: 1.16850, 1.16500, 1.16200
  • Resistance levels: 1.17100, 1.17300, 1.17700

If the price fixes below the support level of 1.16850, the EUR/USD quotes are expected to fall further. The movement is tending to 1.16500-1.16200.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.17500-1.17700.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31778
  • Open: 1.31653
  • % chg. over the last day: -0.09
  • Day's range: 1.31230 – 1.31779
  • 52 wk range: 1.2361 – 1.4345

Yesterday the GBP/USD currency pair held the round level of 1.32000, which caused the bearish sentiment. The current technical pattern signals a further fall in quotations. The key levels of support and resistance are: 1.31250 and 1.31650 respectively. The positions must be opened from these marks. We recommend you to keep track of the current information regarding the Brexit process.

The news feed on the UK economy is calm. At 17:00 (GMT+3:00) investors will evaluate the speech by the head of the Bank of England.

GBP/USD

Indicators do not send accurate signals: 50 MA has crossed 200 MA.

The MACD histogram has moved into the negative zone, which signals the bearish sentiment.

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: 1.31250, 1.31000, 1.30700
  • Resistance levels: 1.31650, 1.32000, 1.32350

If the price falls below the support level of 1.31250, GBP/USD is expected to fall. The movement is tending to 1.31000-1.30700.

An alternative may be the growth of the GBP/USD currency pair to the level of 1.31800-1.32000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29498
  • Open: 1.30188
  • % chg. over the last day: +0.65
  • Day's range: 1.30034 – 1.30587
  • 52 wk range: 1.2059 – 1.3795

There is a pronounced trend on the USD/CAD pair. Yesterday, the growth of quotations exceeded 70 points. Today, loonie has continued to lose ground against the US dollar. The trading instrument has approached the key resistance level of 1.30650. The local support is the mark of 1.30300. The USD/CAD currency pair is tending to grow.

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

USD/CAD

Indicators point to the power 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 near the overbought zone, the %K line is above the %D line, which also signals the purchase of USD/CAD.

Trading recommendations
  • Support levels: 1.30300, 1.30000, 1.29700
  • Resistance levels: 1.30650, 1.31000

If the price fixes above the resistance level of 1.30650, further growth of the USD/CAD quotations is expected. The movement is tending to 1.31000-1.31250.

Alternative option. If the price fixes below 1.30300, we recommend you to look for entry points to the market to open short positions. The target level for profit-taking is 1.30000-1.29700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.970
  • Open: 112.714
  • % chg. over the last day: -0.23
  • Day's range: 112.586 – 112.899
  • 52 wk range: 104.56 – 114.74

At the moment, the USD/JPY currency pair is consolidating after a significant increase since the beginning of this month. In the near future, a technical correction is not ruled out. The trading instrument is testing local support and resistance levels: 112.600 and 112.850, respectively. The positions must be opened from these marks. We recommend you to pay attention to economic reports from the USA.

The news feed on Japan's economy is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 112.600, 112.400, 112.100
  • Resistance levels: 112.850, 113.100

If the price fixes below the local support of 112.600, the correction movement is expected. The movement is tending to 112.400-112.100.

An alternative may be the growth of the USD/JPY quotations to the local offer zone of 113.000-113.100.

by JustForex, 2018.09.27

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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