The Analytical Overview of the Main Currency Pairs on 2017.12.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18647
  • Open: 1.18258
  • % chg. over the last day: -0.29
  • Day's range: 1.18163 – 1.18481
  • 52 wk range: 1.0341 – 1.2069

Yesterday, the bearish sentiment prevailed on the EUR/USD currency pair. The possible implementation of the tax reform still provides support to the US dollar. Nevertheless, the growth of the US currency was moderate. The US published weak statistics on business activity in the non-manufacturing sector. At the moment, the price is testing local support and resistance levels: 1.18200 and 1.18500, respectively. The trading instrument has the potential to further reduce. We are waiting for statistics from the USA.

The news feed for 2017.12.06:

At 15:15 (GMT+2:00) the preliminary report on the labor market in the US from ADP will be released.

EUR/USD

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

The MACD histogram is located in the negative zone and continues to decline, which signals a fall in EUR/USD.

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

Trading recommendations
  • Support levels: 1.18200, 1.18000
  • Resistance levels: 1.18500, 1.18850, 1.19300

If the price fixes below the local support of 1.18200, we recommend considering sales of EUR/USD. The movement is tending to 1.18000-1.17750.

Alternative option. If the price fixes above 1.18500, you need to look for entry points to open long positions. The target level of movement is 1.18850-1.19000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34817
  • Open: 1.34430
  • % chg. over the last day: -0.48
  • Day's range: 1.33868 – 1.34444
  • 52 wk range: 1.1450 – 1.3618

Sales still prevail on the GBP/USD currency pair. Uncertainty about Brexit puts pressure on the pound. At the moment, the quotations are consolidating in the range of 1.34000-1.34350. We do not rule out a further decline in the GBP/USD currency pair. Participants of the financial markets expect a preliminary report on the labor market in the United States.

The news feed on the UK economy is calm.

GBP/USD

At the moment, the price is testing 200 MA, which is a strong dynamic support.

The MACD histogram is in the negative zone and continues to decline, indicating a fall in GBP/USD.

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

Trading recommendations
  • Support levels: 1.34000, 1.33350
  • Resistance levels: 1.34350, 1.35000, 1.35450

If the price fixes below the round level of 1.34000, we recommend considering sales of GBP/USD. The movement is tending to 1.33500-1.33350. When tracking positions, it is better to use a trailing stop.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26735
  • Open: 1.26865
  • % chg. over the last day: +0.20
  • Day's range: 1.26855 – 1.27067
  • 52 wk range: 1.2059 – 1.3795

Yesterday, the USD/CAD currency pair held the local support level at 1.26850, which caused a correction movement. At the moment, quotations are consolidating in the range of 1.26850-1.27200. The trading instrument has the potential for further recovery. On the USD/CAD currency pair a fairly strong reversal formation of the price and MACD histogram divergence was formed. We recommend opening positions from the key levels.

Investors are expecting a meeting of the Bank of Canada. It is expected that the regulator will leave the key interest rate at the previous level of 1.00%.

USD/CAD

The indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is located near the 0 mark.

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

Trading recommendations
  • Support levels: 1.26850, 1.26400, 1.26000
  • Resistance levels: 1.27200, 1.27600, 1.28000

If the price fixes above the local resistance of 1.27200, the correction of USD/CAD quotes is expected. The movement is tending to 1.27600-1.28000.

Alternative option. If the price fixes below the 1.26850 mark, we recommend you to look for selling USD/CAD. The target level of movement is 1.26400-1.26000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 112.406
  • Open: 112.583
  • % chg. over the last day: +0.04
  • Day's range: 111.993 – 112.630
  • 52 wk range: 99.53 – 118.67

Today in the Asian trading session, aggressive sales of USD/JPY have been observed. The drop in quotations exceeded 60 points. USD/JPY has reached the round level of 112.000. The 112.350 mark is already a "mirror" resistance. At the moment, the trading instrument is consolidating. Positions must be opened from the key levels. We recommend paying attention to the dynamics of the US government bonds yield.

The publication of important economic reports from Japan is not planned.

USD/JPY

The indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is in the negative zone and below the signal line, which indicates a bearish sentiment for USD/JPY.

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

Trading recommendations
  • Support levels: 112.000, 111.500
  • Resistance levels: 112.350, 112.700, 113.000

If the price fixes below the round level of 112.000, we recommend considering selling USD/JPY. The movement is tending to 111.500.

Alternative option. If the USD/JPY rate overcomes the "mirror" resistance level of 112.350, it is necessary to look for entry points to the market to open long positions. The movement is tending to 112.700-113.000.

by JustForex, 2017.12.06

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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