The Analytical Overview of the Main Currency Pairs on 2018.01.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21925
  • Open: 1.22637
  • % chg. over the last day: +0.62
  • Day's range: 1.22158 – 1.22834
  • 52 wk range: 1.0492 – 1.2296

During yesterday's trading, the US dollar continued to lose grounds against the majors. The dollar index (#DX) fell by more than 0.5%. Demand for the euro remains at a fairly high level. This year, the ECB plans to consider reducing of quantitative easing program. At the moment, the key trading range on EUR/USD is 1.22200-1.22850. We recommend opening positions from these marks. In the near future, a technical correction is not excluded.

Today, the publication of important economic reports is not planned. We recommend paying attention to the dynamics of the US government bonds yield.

EUR/USD

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

The MACD histogram began to decline and fixed below the signal line, which indicates a correction of the EUR/USD quotes.

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

Trading recommendations
  • Support levels: 1.22200, 1.21500, 1.20850
  • Resistance levels: 1.22850, 1.23000

If the price fixes below the local support level of 1.22200, the correction of the EUR/USD currency pair is expected. The movement is tending potentially to 1.21500-1.21100 (38.2% -50.0% are correctional zones).

Alternative option. If the price fixes above 1.22850, it is necessary to look for entry points to the market to open long positions. The movement is tending potentially to 1.23250-1.23400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.37273
  • Open: 1.37919
  • % chg. over the last day: +0.46
  • Day's range: 1.37756 – 1.38058
  • 52 wk range: 1.2014 – 1.3820

During the last sessions the aggressive purchases of GBP/USD are being observed. At the moment, the trading instrument is consolidating. The key trading range is 1.37650-1.38150. Investors took a wait-and-see attitude before the publication of the report on inflation in the UK at 11:30 (GMT+2:00). Experts expect that in December the consumer price index will drop to 3.0% (year-on-year). We recommend opening positions from key support and resistance levels.

The news feed on the US economy is calm today.

GBP/USD

Indicators do not send accurate signals. The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram began to decline and fixed below the signal line, which indicates a correction of the GBP/USD currency pair.

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

Trading recommendations
  • Support levels: 1.37650, 1.37000, 1.36100
  • Resistance levels: 1.38150

If the price fixes above the resistance level of 1.38150, further growth of the GBP/USD quotes is expected. The movement is tending potentially to 1.38500-1.38600.

Alternative option. If the price fixes below 1.37650, it is necessary to consider sales of GBP/USD. The movement is tending potentially to the round level of 1.37000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24583
  • Open: 1.24242
  • % chg. over the last day: -0.26
  • Day's range: 1.24180 – 1.24442
  • 52 wk range: 1.2059 – 1.3795

Since the beginning of this week, trades on the USD/CAD currency pair are quite active. At the same time, the unidirectional trend is not observed. At the moment, the USD/CAD quotes are in a sideways trend. The technical pattern is ambiguous. The trading instrument is testing local support and resistance levels: 1.24100 and 1.24450, respectively. We recommend opening positions from these marks.

The news feed on the economy of Canada is calm.

USD/CAD

Indicators do not send accurate signals. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

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 in the neutral zone, the %K line is above the %D line, which signals the purchases of USD/CAD.

Trading recommendations
  • Support levels: 1.24100, 1.23650
  • Resistance levels: 1.24450, 1.24850, 1.25450

If the price fixes below the support level of 1.24100, it is necessary to consider sales of USD/CAD. The movement is tending potentially to 1.23650-1.23500.

Alternative option. If the price fixes above 1.24450, the USD/CAD growth is expected. The movement is tending potentially to 1.24850-1.25000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.075
  • Open: 110.542
  • % chg. over the last day: -0.48
  • Day's range: 110.473 – 110.983
  • 52 wk range: 107.33 – 115.62

Since the beginning of this month, sales are prevailed on USD/JPY. At the moment, the trading instrument is consolidating. The key support and resistance levels are: 110.400 and 111.000, respectively. In the near future, a technical correction is not excluded. The positions must be opened from these marks. We recommend paying attention to the US government bonds yield.

The news feed on the economy of Japan is rather calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 110.400, 110.00
  • Resistance levels: 111.000, 111.600

If the price fixes above the round level of 111.000, the correction of the USD/JPY currency pair is expected. The movement is tending potentially to 111.600-111.850.

Alternative option. If the price fixes below the level of 110.400, it is necessary to consider sales of USD/JPY. The target movement level is 110.000.

by JustForex, 2018.01.16

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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