The Analytical Overview of the Main Currency Pairs on 2017.09.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18802
  • Open: 1.18908
  • % chg. over the last day: +0.29
  • Day's range: 1.18895 – 1.19115
  • 52 wk range: 1.0341 – 1.2069

Yesterday's trading on EUR/USD was quite active. At the same time, a unidirectional trend was not observed. The trading instrument was in a sideways movement with a range of more than 45 points. The key levels of support and resistance are still 1.18700 and 1.19250 respectively. We expect economic reports from the Eurozone.

News line on 2017.09.05:

  • - Statistics about business activity in Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
  • - The volume of retail sales of the Eurozone at 12:00 (GMT+3:00).

At 20:10 (GMT+3:00) the speech of the FOMC member Kashkari will be held.

EUR/USD

The signals of the indicators are ambiguous. The price has crossed 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.18700, 1.17800
  • Resistance levels: 1.19250, 1.20000, 1.20500

If the statistics on the Eurozone economy is positive, the bullish sentiment may prevail on the EUR/USD currency pair. The movement is tending to 1.19500-1.19750.

Alternatively, the EUR/USD quotes may drop to 1.18500-1.18400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29502
  • Open: 1.29064
  • % chg. over the last day: -0.22
  • Day's range: 1.29047 – 1.29392
  • 52 wk range: 1.1450 – 1.3447

Yesterday, sales prevailed on GBP/USD. In August, the index of business activity in the construction sector of the UK declined from 51.9 to 51.1. Market expectations were at the level of 52.0. At the moment, the currency is testing a "mirror" resistance of 1.29350. The nearest support is at the round level of 1.29000.

At 11:30 (GMT+3:00), the index of business activity in the services sector of Great Britain will be published.

GBP/USD

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

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

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

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

If the statistics from the UK turns out to be positive, you should consider buying GBP/USD. The movement is tending to 1.29750.

An alternative may be the GBP/USD reduction to around 1.28600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24092
  • Open: 1.24125
  • % chg. over the last day: +0.16
  • Day's range: 1.23868 – 1.24182
  • 52 wk range: 1.2414 – 1.3795

At the moment, USD/CAD is consolidating after a sharp drop last week. In the near future, a technical correction is not excluded. The key support and resistance levels are 1.23750 and 1.24150 respectively. We recommend looking for entry points to the market from these marks.

The news background on Canada's economy is calm today.

USD/CAD

The price is close to 50 MA, which is currently a fairly strong dynamic resistance.

The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

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

Trading recommendations
  • Support levels: 1.23750, 1.23000
  • Resistance levels: 1.24500, 1.24900

If the price fixes above the local resistance of 1.24150, we recommend you to look for entry points to the market to open long positions. The movement is tending potentially to 1.24500-1.24900.

Alternative option. If the USD/CAD quotes overcome the mark of 1.23750, it is necessary to consider sales. The target movement level is 1.23500-1.23250.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.498
  • Open: 109.670
  • % chg. over the last day: -0.42
  • Day's range: 109.197 – 109.837
  • 52 wk range: 99.53 – 118.67

The demand for safe assets remains at a fairly high level. In the Asian trading session, the USD/JPY currency pair held the local resistance at 109.800, which caused further strengthening of the yen. The trading instrument found support at 109.250. We recommend paying attention to the US government bonds yield.

There are no important economic reports from Japan today.

USD/JPY

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

The MACD histogram is located in the negative zone and below the signal line, which indicates a drop in the USD/JPY quotes.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.

Trading recommendations
  • Support levels: 109.250, 108.850, 108.500
  • Resistance levels: 109.800

If the price fixes below the local support of 109.250, we recommend you to look for entry points to the market to open short positions. The target movement level is 108.850-108.500. When tracking a position, one should use a trailing stop.

by JustForex, 2017.09.05

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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.