The Analytical Overview of the Main Currency Pairs on 2017.09.11

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.20216
  • Open: 1.20151
  • % chg. over the last day: +0.10
  • Day's range: 1.19921 – 1.20259
  • 52 wk range: 1.0341 – 1.2069

Last week the US dollar significantly weakened relative to the "majors". The fall of the dollar index (#DX) exceeded 1.5%. Nevertheless, today in the Asian trading session, the American currency has moved away from local lows. At the moment, the technical pattern on EUR/USD is ambiguous. The key trading range is 1.19750-1.20350. We recommend you to open positions from these levels.

Today, the publication of important economic reports is not planned.

EUR/USD

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

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

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

Trading recommendations
  • Support levels: 1.19750, 1.19250
  • Resistance levels: 1.20350, 1.20800

If the price fixes above the local resistance 1.20350, it is necessary to consider buying EUR/USD. The target movement level is 1.20800.

Alternative option. If the EUR/USD quotes overcome the level of 1.19750, we recommend looking for entry points to the market for opening short positions. The movement is tending to 1.19250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30991
  • Open: 1.31861
  • % chg. over the last day: +0.74
  • Day's range: 1.31676 – 1.31978
  • 52 wk range: 1.1450 – 1.3447

Since the beginning of this month, a pronounced upward trend has been observed on GBP/USD. During this period, the pound has strengthened against the US dollar by more than 300 points. Nevertheless, a technical correction is possible in the near future. The key levels of support and resistance are 1.31500 and 1.32150 respectively.

The news background on the UK economy is calm today.

GBP/USD

The price is above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram has fixed in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals a bullish sentiment on GBP/USD.

Trading recommendations
  • Support levels: 1.31500, 1.31000
  • Resistance levels: 1.32150

If the price fixes above 1.32150, further growth of the GBP/USD currency pair is possible. The movement is tending potentially to 1.32500-1.32750.

Alternative option. If the GBP/USD quotes overcome the level of 1.31500, a correction may develop. The movement is tending to the round level of 1.31000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21147
  • Open: 1.21576
  • % chg. over the last day: +0.34
  • Day's range: 1.21262 – 1.21622
  • 52 wk range: 1.2414 – 1.3795

Last week, the Bank of Canada unexpectedly raised the key interest rate by 25 basis points to 1.00%, which caused a significant demand for the Canadian dollar. On Friday, September 8, a positive report on the labor market in Canada was published. Nevertheless, the USD/CAD currency pair has moved away from local extremes. At the moment, the trading instrument is consolidating. A technical correction is not excluded.

At 15:15 (GMT+3:00) there will be data on the construction of new homes in Canada.

USD/CAD

The price has crossed 50 MA, which currently acts as a rather strong dynamic resistance.

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator has reached the oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/CAD.

Trading recommendations
  • Support levels: 1.21200, 1.20650
  • Resistance levels: 1.21600, 1.22350, 1.23000

If the USD/CAD quotes overcome the local support of 1.21200, we recommend looking for entry points to the market for opening short positions. The closest target for fixing profits is the mark of 1.20650.

Alternative option. If the price fixes above the resistance level of 1.21600, a correction may develop on the USD/CAD currency pair. The movement is tending to 1.22350-1.23000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.370
  • Open: 108.224
  • % chg. over the last day: -0.56
  • Day's range: 108.128 – 108.614
  • 52 wk range: 99.53 – 118.67

Currently, there is a corrective movement on USD/JPY. The trading instrument opened with a gap up. The price reached a "mirror" resistance level of 108.500. The nearest support is at the round level of 108.000. The USD/JPY currency pair has the potential for further correction. We recommend paying attention to the US government bonds yield.

The news background on Japan's economy is rather calm today.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 108.000, 107.500
  • Resistance levels: 108.500, 109.000

If the price fixes above the level of 108.500, the correction of USD/JPY may continue. The movement is tending to the round level of 109.000.

Alternative option. If the USD/JPY quotes overcome the support level of 108.000, we recommend considering sales. The movement is tending potentially to 107.500.

by JustForex, 2017.09.11

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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.