The Analytical Overview of the Main Currency Pairs on 2017.08.30

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19777
  • Open: 1.19717
  • % chg. over the last day: -0.08
  • Day's range: 1.19400 – 1.19846
  • 52 wk range: 1.0339 – 1.1909

Yesterday, the US dollar recouped some of the losses relative to the major currencies. Support for the US currency was provided by positive data on the consumer confidence index in the US. In August, the indicator increased by 2.4% and amounted to 122.9, which is more than the forecasted value of 120.3. Further correction of the EUR/USD quotes is not excluded. At the moment, the key trading range is 1.19250-1.19800. We expect economic reports from the USA.

The news line from the USA on 2017.08.30:

  • – Preliminary report on the labor market from ADP at 15:15 (GMT+3:00);
  • – Revised data on GDP for the second quarter at 15:30 (GMT+3:00).
EUR/USD

The price is close to 50 MA, which currently acts as a rather strong dynamic resistance.

The MACD histogram has begun to decline and moved to the negative zone, which indicates a further correction of the EUR/USD quotes.

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

Trading recommendations
  • Support levels: 1.19250, 1.18250
  • Resistance levels: 1.19800, 1.20600

If the statistics from the US turns out to be positive, the correction of the EUR/USD currency pair may continue. The movement is tending to 1.18700-1.18250.

An alternative may be the growth of the EUR/USD quotations to the level of 1.20350-1.20600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29311
  • Open: 1.29145
  • % chg. over the last day: -0.08
  • Day's range: 1.28959 – 1.29379
  • 52 wk range: 1.1450 – 1.3447

Yesterday, the GBP/USD currency pair showed a variety of trends. The trading closed with a slight increase in the US dollar. At the moment there is an ambiguous technical pattern. The key levels of support and resistance are 1.29000 and 1.29350 respectively. The positions must be opened from these marks. We are waiting for statistics from the USA.

Today, the news background on the UK economy is calm.

GBP/USD

Indicators do not send accurate signals. The price is between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has moved to the negative zone and continues to decline, indicating a fall in GBP/USD.

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

Trading recommendations
  • Support levels: 1.29000, 1.28600
  • Resistance levels: 1.29350, 1.29750

If economic reports from the US turn out to be positive, the bearish sentiment may prevail on the GBP/USD currency pair. The target movement level is 1.28600.

An alternative may be the growth of GBP/USD to the local resistance of 1.29750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25041
  • Open: 1.25113
  • % chg. over the last day: +0.06
  • Day's range: 1.24999 – 1.25336
  • 52 wk range: 1.2414 – 1.3795

During yesterday's trading, the USD/CAD currency pair continued to test key support and resistance levels: 1.24500 and 1.25300, respectively. The technical pattern is still ambiguous. The negative dynamics of the oil quotes put pressure on the Canadian dollar. Today, the attention is focused on economic reports from the United States.

The news background on the economy of Canada is quite calm. At 15:30 (GMT+3:00), the balance of the current transactions will be published.

USD/CAD

The USD/CAD quotes have fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is in the positive zone and continues to rise, which indicates an increase in the USD/CAD currency pair.

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

Trading recommendations
  • Support levels: 1.24500
  • Resistance levels: 1.25300, 1.26000

If the statistics from the US is optimistic, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to 1.25800-1.26000.

Alternatively, USD/CAD may drop to the level of 1.24700-1.24500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.233
  • Open: 109.577
  • % chg. over the last day: +0.48
  • Day's range: 109.535 – 110.172
  • 52 wk range: 99.53 – 118.67

Yesterday, the USD/JPY currency pair kept a support level of 108.350, which triggered aggressive purchases. Today, the yen continued to lose ground against the US dollar. At the moment, the currency is testing a round level of 110.000. The level of 109.700 is already a "mirror" support. We recommend paying attention to the US government bonds yield.

In July, the volume of retail sales in Japan increased by 1.9%. Market expectations were at the level of 1.0%.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 109.700, 108.850, 108.350
  • Resistance levels: 110.150, 110.500

If economic reports from the US prove to be positive, the growth of the USD/JPY quotes may continue. The target movement level is 110.500.

An alternative may be the correction of the USD/JPY currency pair to the level of 109.500-109.300.

by JustForex, 2017.08.30

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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.