The Analytical Overview of the Main Currency Pairs on 2017.10.18

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17958
  • Open: 1.17662
  • % chg. over the last day: -0.22
  • Day's range: 1.17479 – 1.17807
  • 52 wk range: 1.0341 – 1.2069

During yesterday's trading, the US dollar strengthened against the major currencies. Support was provided by optimistic economic reports and growth in the US government bonds yield. At the moment, the EUR/USD currency pair is in a sideways trend. The technical pattern is ambiguous. The key trading range is 1.17450-1.17800. Demand for the American currency remains at a fairly high level. We are waiting for important statistics from the USA.

The Economic calendar for 2017.10.18:

  • - A Report on the real estate market in the US at 15:30 (GMT+3:00);
  • - The Fed's "Beige Book" at 21:00 (GMT+3:00).

We also recommend you to pay attention to the speeches of the FOMC representatives.

EUR/USD

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 EUR/USD.

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: 1.17450, 1.17000
  • Resistance levels: 1.17800, 1.18250

If the statistics on the US economy is positive, we recommend considering the sales of EUR/USD. The movement is tending to the round level of 1.17000.

The alternative may be the growth of the EUR/USD quotations to the level of 1.18000-1.18250.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32513
  • Open: 1.31894
  • % chg. over the last day: -0.44
  • Day's range: 1.31633 – 1.31975
  • 52 wk range: 1.1450 – 1.3618

At the moment, the bearish sentiment prevails on the GBP/USD currency pair. In September, the UK consumer price index rose by 3.0% (year on year). The inflation rate reached its maximum since in April 2012. Earlier, representatives of the Bank of England were concerned that wages in the country were growing more slowly than consumer prices. Today we expect the report on the UK labor market at 11:30 (GMT+3:00). At the moment, the GBP/USD currency pair is consolidating in a rather narrow range of 1.31600-1.31900.

We recommend paying attention to the news line on the US economy.

GBP/USD

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

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

Stochastic Oscillator is located near the oversold zone, the %K line has crossed the %D line. There are currently no signals.

Trading recommendations
  • Support levels: 1.31600, 1.31000
  • Resistance levels: 1.31900, 1.32250, 1.32750

If the statistics on the labor market turns out to be weak, we expect a further drop in GBP/USD. The movement is tending to the round level of 1.31000.

An alternative may be the growth of the GBP/USD currency pair to 1.32250-1.32750. When tracking positions, one should use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25143
  • Open: 1.25216
  • % chg. over the last day: -0.16
  • Day's range: 1.24876 – 1.25242
  • 52 wk range: 1.2059 – 1.3795

Yesterday's trading on the USD/CAD currency pair was very active. At the same time, a unidirectional trend was not observed. At the moment, the technical pattern is ambiguous. The price is testing a "mirror" resistance of 1.25150. The nearest support is at the level of 1.24900. Participants of the financial markets expect additional drivers. Today, the attention is focused on economic reports from the United States.

At 15:30 (GMT+3:00) the data on sales in the manufacturing sector of Canada will be released.

USD/CAD

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

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

Stochastic Oscillator is located near the overbought zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.

Trading recommendations
  • Support levels: 1.24900, 1.24500
  • Resistance levels: 1.25150, 1.25500, 1.25850

If statistics from the US turns out to be optimistic, we recommend looking for entry points to the market to open long positions. The target level of movement is 1.25500-1.25850.

Alternatively, USD/CAD may fall to the level of 1.24750-1.24500.

When tracking positions, one should use a trailing stop.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.183
  • Open: 112.194
  • % chg. over the last day: +0.02
  • Day's range: 112.134 – 112.535
  • 52 wk range: 99.53 – 118.67

At the moment, purchases are prevailing on the USD/JPY currency pair. The price has reached the resistance level of 112.550. The nearest support is located at 112.250. The trading instrument has the potential for further growth. The positive dynamics of the yield of US government bonds supports the demand for US currency. We recommend paying attention to economic reports from the USA.

The news background on Japan's economy is calm.

USD/JPY

Indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is located in the positive zone and continues to rise, which signals the growth of USD/JPY.

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

Trading recommendations
  • Support levels: 112.250, 112.000
  • Resistance levels: 112.550, 112.750, 113.000

If the price fixes above the resistance level of 112.550, we recommend you to look for entry points to the market to open long positions. The movement is tending to 112.750-113.000. When following a position, one should use a trailing stop.

by JustForex, 2017.10.18

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.