The Analytical Overview of the Main Currency Pairs on 2017.12.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17811
  • Open: 1.18394
  • % chg. over the last day: +0.47
  • Day's range: 1.18290 – 1.18489
  • 52 wk range: 1.0341 – 1.2069

Since the beginning of this week, purchases prevail on the EUR/USD currency pair. Yesterday, the single currency rose against the US dollar by more than 70 points. At the moment, the trading instrument is consolidating in the range of 1.18200-1.18500. Investors are monitoring the implementation of the tax reform in the United States. The US Senate approved the bill draft. We also recommend paying attention to the economic reports and the dynamics of the yield of US government bonds. Positions must be opened from the key levels.

At 17:00 (GMT+2:00) the data on sales in the secondary housing market in the US will appear.

EUR/USD

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

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

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: 1.18200, 1.17800, 1.17400
  • Resistance levels: 1.18500, 1.19000

If the price fixes above 1.18500, we recommend considering buying EUR/USD. The movement is tending to the round level of 1.19000.

Alternative option. If the price fixes below the local support of 1.18200, you need to look for entry points to the market to open short positions. The target level of movement is 1.17800-1.17600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33810
  • Open: 1.33836
  • % chg. over the last day: +0.03
  • Day's range: 1.33773 – 1.34027
  • 52 wk range: 1.1450 – 1.3618

Yesterday's trading on GBP/USD was quite active. At the same time, a unidirectional trend was not observed. Trades closed with a slight strengthening of the British currency. The technical pattern is still ambiguous. The key support and resistance levels are 1.33700 and 1.34100, respectively. Positions should be opened if the price fixes above/below these markers.

We recommend you to pay attention to the speech of the head of the Bank of England.

GBP/USD

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

The MACD histogram is 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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.33700, 1.33350, 1.33100
  • Resistance levels: 1.34100, 1.34550

If the price fixes below the support level of 1.33700, it is necessary to consider sales of GBP/USD. The movement is tending to 1.33350-1.33100.

Alternative option. If the price fixes above 1.34100, we recommend you to look for entry points to the market to open long positions. The target level of movement is 1.34550-1.34750.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28630
  • Open: 1.28762
  • % chg. over the last day: +0.14
  • Day's range: 1.28570 – 1.28807
  • 52 wk range: 1.2059 – 1.3795

Since the beginning of this week, the USD/CAD currency pair is being traded in flat. A unidirectional trend is not observed. During this period, strong support and resistance levels were formed: 1.28450 and 1.28850, respectively. Participants of the financial markets expect additional drivers. The attention is focused on the tax reform in the United States. We recommend opening positions from the key levels.

At 15:30 (GMT+2:00) the data on the volume of wholesale sales in Canada will be released.

USD/CAD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.28450, 1.28000, 1.27400
  • Resistance levels: 1.28850

If the price fixes above the resistance level of 1.28850, we recommend considering buying USD/CAD. The movement is tending to 1.29250-1.29500.

Alternative option. If the price fixes below 1.28450, you need to look for entry points to the market to open short positions. The movement is tending to 1.28000-1.27750.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.538
  • Open: 112.882
  • % chg. over the last day: +0.41
  • Day's range: 112.840 – 113.169
  • 52 wk range: 99.53 – 118.67

At the moment, the bullish sentiment is prevailing on the USD/JPY currency pair. Yesterday, the growth of quotations exceeded 50 points. Today, the yen continued to lose ground against the US dollar. Support for the US currency has a positive dynamics in the yield of government bonds. The further growth of the USD/JPY currency pair is not excluded. The key trading range is 112.800-113.250.

The news background on Japan's economy is calm.

USD/JPY

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

Trading recommendations
  • Support levels: 112.800, 112.500, 112.100
  • Resistance levels: 113.250, 113.650

If the price fixes above the resistance level of 113.250, we recommend considering buying USD/JPY. The movement is tending to 113.650-113.750. When tracking positions, one should use a trailing stop.

by JustForex, 2017.12.20

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.

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