The Analytical Overview of the Main Currency Pairs on 2017.07.21

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.15139
  • Open: 1.16286
  • % chg. over the last day: +0.98
  • Day's range: 1.16183 – 1.16768
  • 52 wk range: 1.0366 – 1.1616

The ECB left the monetary policy at the same level: the deposit rate -0.40%; the interest rate 0.00%. At the same time, the head of the Central Bank said that in the autumn the issue of reducing the quantitative easing program could be raised. The latest statistics indicate a recovery of the Eurozone economy. These comments caused a sharp strengthening of the euro against the US dollar. The growth of the EUR/USD quotations exceeded 125 points. At the moment, the key trading range is 1.16200–1.16750. The demand for a single currency remains at a fairly high level.

The news background is calm today.

EUR/USD

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

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

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

Trading recommendations
  • Support levels: 1.16200, 1.15800, 1.14850
  • Resistance levels: 1.16750

At the moment, the technical pattern is ambiguous. Today, we recommend opening positions from the key levels. In the near future, we do not exclude a correction.

If the price fixes above the resistance of 1.16750, it is necessary to consider buying EUR/USD. The movement is tending potentially to 1.17000-1.17250.

Alternative option. If the EUR/USD quotes overcome local support of 1.16200, a corrective movement may develop. The immediate goal for fixing profits is the "mirror" support level of 1.15800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30164
  • Open: 1.29647
  • % chg. over the last day: -0.41
  • Day's range: 1.29527 – 1.30024
  • 52 wk range: 1.1986 – 1.5020

Yesterday, the bearish sentiment prevailed on GBP/USD despite a positive report on retail sales in the UK. Investors doubt that in the near future, the Bank of England may raise the interest rate. At the moment, the currency is in a sideways trend. The key trading range is 1.29600-1.30100.

There are no important economic reports from the UK today.

GBP/USD

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

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. At the moment there are no signals.

Trading recommendations
  • Support levels: 1.29600, 1.29000
  • Resistance levels: 1.30100, 1.30600

If the price fixes above the local resistance of 1.30100, we recommend considering buying GBP/USD. The target movement level is 1.30600.

Alternative option. If the price overcomes the local support of 1.29600, you need to look for entry points to the market in order to open short positions. The movement is tending potentially to the round level of 1.29000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26031
  • Open: 1.25810
  • % chg. over the last day: -0.07
  • Day's range: 1.25685 – 1.26052
  • 52 wk range: 1.2458 – 1.4692

The USD/CAD currency pair continues to consolidate. At the moment, the key levels of support and resistance are 1.25500 and 1.26000 respectively. The market is waiting for additional drivers. Participants of the financial markets adopted a wait-and-see attitude before the publication of inflation and retail sales reports in Canada.

Newsline on the economy of Canada:

  • – Statistics on inflation at 15:30 (GMT+3:00);
  • – A report on retail sales at 15:30 (GMT+3:00).
USD/CAD

The USD/CAD quotes have fixed below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram is in the negative zone and continues to decline, which indicates a bearish sentiment on USD/CAD.

Stochastic Oscillator is located near the oversold zone, the %K line is crossing the %D line. At the moment there are no signals.

Trading recommendations
  • Support levels: 1.25500
  • Resistance levels: 1.26000, 1.26700

If the statistics from Canada is positive, the downward trend on USD/CAD may continue. The movement is tending potentially to the round level of 1.25000.

An alternative may be the correction of the USD/CAD currency pair to the level of 1.26700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.934
  • Open: 111.888
  • % chg. over the last day: -0.07
  • Day's range: 111.681 – 112.078
  • 52 wk range: 99.08 – 123.69

Yesterday, trading on USD/JPY was quite active. However, a unidirectional trend was not observed. At the moment, the technical pattern is ambiguous. The following key levels can be identified: support – 111.600; resistance – 112.000. The positions must be opened from these marks. We also recommend paying attention to the US government bonds yield.

Today, the news background on the Japanese economy is calm.

USD/JPY

Indicators point to the power of sellers. Prices are below 50 MA and 200 MA.

The MACD histogram has begun to decline and moved to the negative zone, which signals a further drop of USD/JPY.

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

Trading recommendations
  • Support levels: 111.600
  • Resistance levels: 112.000, 112.400

If the price fixes below the support level of 111.600, the downward trend in USD/JPY may continue. The movement is tending potentially to the round level of 111.000. When tracking the position, it is recommended to use a trailing stop.

Alternative option. If the USD/JPY quotations overcome the round level of 112.000, we recommend looking for entry points to the market in order to open long positions. The immediate goal for profit-taking is 112.400.

by JustForex, 2017.07.21

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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.