The Analytical Overview of the Main Currency Pairs on 2018.03.23

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23394
  • Open: 1.23071
  • % chg. over the last day: -0.11
  • Day's range: 1.23071 – 1.23487
  • 52 wk range: 1.0492 – 1.2537

Trading activity and volatility in the financial markets increased significantly. The risks of a trade war between the US and China have increased again, which puts considerable pressure on the American currency. Donald Trump announced the introduction of trade duties on Chinese goods in the amount of more than 50 billion dollars. At the moment, the key levels of support and resistance on the EUR/USD currency pair are 1.23000 and 1.23450, respectively. We recommend you to open positions above/below these markers.

The news feed on the US economy for 2018.03.23:
  • - Statistics on durable goods orders at 14:30 (GMT+2:00);
  • - New home sales at 16:00 (GMT+2:00).
EUR/USD

Indicators do not send accurate signals: 50 MA has crossed 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 signals sales of EUR/USD.

Trading recommendations
  • Support levels: 1.23000, 1.22600
  • Resistance levels: 1.23450, 1.23750, 1.24000

If the price fixes below the round level of 1.23000, it is necessary to consider sales of EUR/USD. The movement is tending to 1.22600-1.22400.

Alternative option. If the price fixes above 1.23450, we recommend you to look for entry points to the market to open long positions. The movement is tending to the offer zone of 1.23750-1.24000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.41358
  • Open: 1.41026
  • % chg. over the last day: -0.21
  • Day's range: 1.40948 – 1.41265
  • 52 wk range: 1.2106 – 1.4345

The Bank of England, as expected, left the key interest rate at the previous level of 0.50%. The regulator plans to adhere to the current monetary policy. At the moment, the technical pattern on the GBP/USD is ambiguous. The trading instrument is in a sideways trend. The key support and resistance levels are 1.40750 and 1.41350 respectively. The positions must be opened from these marks.

The news feed on the UK economy is calm.

GBP/USD

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

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.40750, 1.40200
  • Resistance levels: 1.41350, 1.42000

If the price fixes below 1.40750, it is necessary to consider sales of GBP/USD. The movement is tending to 1.40200-1.39850.

Alternative option. If the price fixes above the resistance level of 1.41350, further growth of GBP/USD is expected. The movement is tending to 41800-1.42150.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29027
  • Open: 1.29339
  • % chg. over the last day: +0.22
  • Day's range: 1.28950 – 1.29378
  • 52 wk range: 1.2059 – 1.3795

There is an ambiguous technical pattern on the USD/CAD currency pair. At the moment, the quotes are consolidating after a significant decline at the beginning of this week. The key trading range is 1.28850-1.29250. Investors expect important statistics on the economy of Canada. We recommend opening positions from the key levels.

At 14:30 (GMT+2:00) the reports on inflation and retail sales in Canada will appear.

USD/CAD

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 and continues to decline, which signals the bearish sentiment.

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

Trading recommendations
  • Support levels: 1.28850, 1.28400, 1.28000
  • Resistance levels: 1.29250, 1.29700, 1.30150

If the price fixes below 1.28850, further fall of the USD/CAD currency pair is expected. The movement is tending to 1.28400-1.28000.

An alternative may be the correction of the USD/CAD quotations to the level of 1.29700-1.30150.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.066
  • Open: 105.303
  • % chg. over the last day: -1.04
  • Day's range: 104.637 – 105.327
  • 52 wk range: 107.33 – 115.51

The risks of a trade war between the US and China have increased again, which has led to an increase in the demand for safe assets. Yesterday, the "safe haven" currency strengthened against the US dollar by more than 1%. At the moment, the USD/JPY quotations are consolidating. The key trading range is 104.700-105.100. The positions must be opened from these marks.

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

USD/JPY

The signals of the indicators are different. 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 USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the correction of the USD/JPY currency pair.

Trading recommendations
  • Support levels: 104.700, 104.250
  • Resistance levels: 105.100, 105.600

If the price fixes below the support level of 104.700, the USD/JPY quotes are expected to fall further. The movement is tending to 104.300-104.000.

Alternative option. If the price fixes above the 105.100 mark, one should consider buying USD / JPY. The target level of movement is 105.600-105.850.

by JustForex, 2018.03.23

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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