The Analytical Overview of the Main Currency Pairs on 2017.08.17

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17351
  • Open: 1.17656
  • % chg. over the last day: +0.33
  • Day's range: 1.17507 – 1.17900
  • 52 wk range: 1.0339 – 1.1909

At the moment, the US dollar is under pressure due to the FOMC protocols and the political row in the White House. Yesterday Donald Trump dismissed two advisory bodies, which consisted mainly of businessmen. The Fed's protocol indicated that the regulator is concerned about the low level of inflation in the country. It may take additional time for the indicator to reach the target level of 2% per annum. Some officials of the Fed believe that one should not rush to tighten the monetary policy. Additional pressure on the US dollar is also provided by a weak report on the real estate market. At the moment, the technical pattern on EUR/USD is ambiguous. The key trading range is 1.17400-1.17850. We are waiting for statistics from the Eurozone.

The news background on 2017.08.17:

  • – Data on inflation in the Eurozone at 12:00 (GMT+3:00);
  • – The index of production activity from the Federal Reserve Bank of Philadelphia at 15:30 (GMT+3:00).
EUR/USD

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

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment on EUR/USD.

Trading recommendations
  • Support levels: 1.17400, 1.17000
  • Resistance levels: 1.17850, 1.18400

If the price fixes above the local resistance of 1.17850, we recommend considering buying EUR/USD. The movement is tending to the level of 1.18400.

Alternative option. If the EUR/USD quotes overcome the 1.17400 mark, you need to look for entry points to the market to open short positions. The immediate goal for profit taking is the round level of 1.17000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28621
  • Open: 1.28878
  • % chg. over the last day: +0.16
  • Day's range: 1.28801 – 1.29089
  • 52 wk range: 1.1450 – 1.3447

The technical pattern on GBP/USD indicates the development of the corrective movement. At the moment, the currency is testing a round level of 1.29000. Demand for the pound is supported by a positive report on the UK labor market. The US dollar remains under pressure amid political tension in the White House and low inflation in the country.

At 11:30 (GMT+3:00) a report on retail sales in the UK will be published.

GBP/USD

The signals of the indicators are ambiguous. The price crossed 50 MA.

The MACD histogram is in the positive zone and above the signal line, which indicates the growth of GBP/USD.

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

Trading recommendations
  • Support levels: 1.28500
  • Resistance levels: 1.29000, 1.29600

If the statistics from the UK is positive, a correction may occur on the GBP/USD currency pair. The movement is tending potentially to the resistance level of 1.29600.

Alternatively, GBP/USD may drop to the level of 1.28500.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27537
  • Open: 1.26130
  • % chg. over the last day: -1.03
  • Day's range: 1.25883 – 1.26339
  • 52 wk range: 1.2414 – 1.3795

At the moment, aggressive sales are being observed on USD/CAD. During yesterday's trading, the drop in quotations exceeded 1%. At the moment, the currency is testing a round level of 1.26000. The local resistance is the mark of 1.26300. The trading instrument has the potential to further reduction. We are waiting for statistics from the USA.

There are no important economic reports from Canada today.

USD/CAD

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, but above the signal line, which gives a weak signal to sell USD/CAD.

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

Trading recommendations
  • Support levels: 1.26000, 1.25600
  • Resistance levels: 1.26300, 1.26750

If the statistics from the US turns out to be weak, the downward trend in USD/CAD may continue. The target movement level is 1.25600.

An alternative may be the correction of the USD/CAD quotations to the level of 1.26300-1.26500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.647
  • Open: 110.176
  • % chg. over the last day: -0.61
  • Day's range: 109.660 – 110.212
  • 52 wk range: 99.53 – 118.67

Demand for the US dollar weakened significantly, which caused "bearish" sentiment on the USD/JPY currency pair. At the moment, the trading instrument is consolidating. The key levels of support and resistance are 109.700 and 110.100 respectively. We expect economic reports from the United States. We also recommend paying attention to the US government bonds yield.

In the Asian trading session, optimistic statistics on Japan's trade balance were published.

USD/JPY

The signals of the indicators vary. The price is below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which signals the growth of USD/JPY.

Trading recommendations
  • Support levels: 109.700, 109.200
  • Resistance levels: 110.100, 110.650

If the price fixes below the local support of 109.700, we recommend considering selling USD/JPY. The immediate goal for profit taking is 109.200.

Alternative option. If the USD/JPY quotes overcome the level of 110.100, you need to look for entry points to the market to open long positions. The target movement level is 110.650.

by JustForex, 2017.08.17

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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.