The Analytical Overview of the Main Currency Pairs on 2017.08.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17554
  • Open: 1.18148
  • % chg. over the last day: +0.48
  • Day's range: 1.17863 – 1.18243
  • 52 wk range: 1.0339 – 1.1909

Yesterday, purchases prevailed on EUR/USD. The single currency strengthened against the US dollar by more than 60 points. This movement was mostly caused by technical factors. The currency found resistance at 1.18250. At the moment, there is a corrective movement. The trading tool is testing the "mirror" support level of 1.17850. We expect statistics from Germany and the Eurozone.

At 12:00 (GMT+3:00) indices of the ZEW economic sentiments will be published in Germany and the Eurozone.

EUR/USD

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

The MACD histogram has begun to decline and is located below the signal line, which sends a signal to sell EUR/USD.

Stochastic Oscillator has reached the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.17850, 1.17400
  • Resistance levels: 1.18250

If the statistics from the Eurozone is positive, the upward trend in EUR/USD may continue. The movement is tending to 1.18250-1.18450.

An alternative may be the correction of the EUR/USD quotations to the level of 1.17400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28649
  • Open: 1.28979
  • % chg. over the last day: +0.20
  • Day's range: 1.28520 – 1.29088
  • 52 wk range: 1.1450 – 1.3447

In the Asian trading session, the GBP/USD currency pair held a round level of 1.29000, which triggered aggressive sales. The drop in quotations exceeded 40 points. At the moment, the currency is testing key support for 1.28500. The technical pattern indicates a continuation of the downward trend.

The news background on the economy of the UK is fairly calm today. At 13:00 (GMT+3:00) there will be data on the index of industrial orders.

GBP/USD

Indicators point to the power of sellers. The price has fixed below 50 MA and 200 MA.

The MACD histogram has begun to decline and has moved to the negative zone, which also sends a signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.28500
  • Resistance levels: 1.29000, 1.29600

If the price fixes below the key support 1.28500, we recommend considering sales of GBP/USD. The movement is tending to the round level of 1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.334
  • Open: 108.967
  • % chg. over the last day: -0.30
  • Day's range: 108.835 – 109.463
  • 52 wk range: 99.53 – 118.67

In the last trading sessions, high volatility is observed on USD/JPY. The tension on the Korean peninsula increased again, which caused a growth in demand for the yen. At the same time, the currency managed to keep the key support at 108.700. At the moment, correction is observed on USD/JPY. Positions need to be opened from the key levels of support and resistance.

The news background on the economy of Japan is calm today. We recommend you to follow the situation on the Korean peninsula.

USD/JPY

Indicators do not send accurate signals. The price is between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram has begun to rise and has moved to the positive zone, which indicates a further correction of the USD/JPY quotes.

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

Trading recommendations
  • Support levels: 109.200, 108.700
  • Resistance levels: 109.450, 110.000

If the price fixes above the level of 109.450, we recommend you to look for entry points to the market to open long positions. The target movement level is 110.000.

Alternative option. If the price fixes below the local support of 109.200, it is necessary to consider sales of USD/JPY. The immediate goal for profit-taking is 108.700.

by JustForex, 2017.08.22

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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.