The Analytical Overview of the Main Currency Pairs on 2017.09.21

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.19940
  • Open: 1.18915
  • % chg. over the last day: -0.99
  • Day's range: 1.18657 – 1.19009
  • 52 wk range: 1.0341 – 1.2069

The Fed, as expected, left the key interest rate range unchanged at 1.00-1.25%. The regulator plans to begin cutting assets on its balance sheet in October this year, which is $4.5 trillion. The central bank also published quite optimistic forecasts. The US GDP growth in 2017 was revised from 2.2% to 2.4%. During yesterday's trading, the US dollar appreciated significantly relative to the "majors". At the moment, the key trading range on EUR/USD is 1.18700-1.19200. Demand for the American currency remains at a high level.

News background on 2017.09.21:

  • - The number of initial claims for unemployment benefits in the US at 15:30 (GMT+3:00);
  • - The index of production activity from the Federal Reserve Bank of Philadelphia at 15:30 (GMT+3:00).

At 16:30 (GMT+3:00) the head of ECB Draghi will give a speech.

EUR/USD

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 EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also indicates a fall in EUR/USD.

Trading recommendations
  • Support levels: 1.18700, 1.18250
  • Resistance levels: 1.19200, 1.19600

At the moment the "bearish" sentiment prevails on EUR/USD. We recommend opening positions in the direction of the current trend. If the price fixes below 1.18700, it is necessary to consider sales of EUR/USD. Target movement to 1.18250-1.18000.

Alternative option. If the EUR/USD quotes overcome the level of 1.19200, a correction movement may develop. The closest target for fixing profits is the level of 1.19600.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34934
  • Open: 1.34933
  • % chg. over the last day: -0.13
  • Day's range: 1.34732 – 1.35138
  • 52 wk range: 1.1450 – 1.3447

Yesterday, demand for the US dollar has grown significantly. The GBP/USD kept the round at 1.36000, which triggered aggressive sales. At the moment, the trading instrument is in a sideways trend. The key levels of support and resistance are still 1.34750 and 1.35350 respectively. The GBP/USD currency pair has the potential for further correction.

The news background on the UK economy is calm today.

GBP/USD

The price tests 50 MA, which currently acts as a rather strong dynamic resistance.

The MACD histogram has moved to the negative zone, which indicates the power of the sellers.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals the purchase of GBP/USD.

Trading recommendations
  • Support levels: 1.34750, 1.34000
  • Resistance levels: 1.35350, 1.36000

We expect a correction of GBP/USD. If the price fixes below 1.34750, we recommend looking for entry points to the market to open short positions. The movement is tending to the round level of 1.34000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22853
  • Open: 1.23243
  • % chg. over the last day: +0.44
  • Day's range: 1.23230 – 1.23551
  • 52 wk range: 1.2414 – 1.3795

Demand for the US dollar remains at a fairly high level. Currently, there is a corrective movement on USD/CAD. Yesterday, the currency found resistance at 1.23750. The mark 1.23100 is already a "mirror" support. We recommend opening positions in the direction of the current trend.

At 15:30 (GMT+3:00) data on the volume of wholesale sales in Canada will be published.

USD/CAD

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

The MACD histogram is located in the positive zone and continues to rise, which also signals the purchase of USD/CAD.

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: 1.23100, 1.22500
  • Resistance levels: 1.23750

We expect the growth of the USD/CAD currency pair. If the price fixes above the local resistance of 1.23750, it is necessary to consider purchases. The movement is tending to 1.24250-1.24500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 111.577
  • Open: 111.577
  • % chg. over the last day: +0.02
  • Day's range: 111.336 – 112.209
  • 52 wk range: 99.53 – 118.67

On the USD/JPY currency pair the "bullish" sentiment still prevails. Yesterday, the yen weakened against the US dollar by more than 75 points. At the moment, the key trading range is 111.850-112.650. Demand for the American currency is still at a high level. We recommend paying attention to the US government bonds yield.

The Bank of Japan, as expected, kept the key interest rate unchanged at -0.1%.

USD/JPY

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 USD/JPY.

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: 111.850, 111.250
  • Resistance levels: 112.650

If the statistics from the US turns out to be positive, the growth of the USD/JPY currency pair may continue. The movement is tending to the round level of 113.000.

An alternative may be the correction of the USD/JPY quotations to 112.000-111.850.

by JustForex, 2017.09.21

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.