The Analytical Overview of the Main Currency Pairs on 2018.02.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25123
  • Open: 1.24358
  • % chg. over the last day: -0.38
  • Day's range: 1.24393 – 1.24489
  • 52 wk range: 1.0492 – 1.2537

On Friday, positive data on the US economy was published. According to the reports, the number of people employed outside the agricultural sector increased by 200 thousand people, while wages increased by 0.3%. The unemployment rate remained at the same level of 4.1%. As a result, the EUR/USD quotes dropped by almost 100 points. At the moment, the technical pattern is ambiguous. The key support and resistance levels are 1.24400 and 1.24700, respectively. Demand for the US dollar remains at a high level. We recommend you to open positions above/below these marks.

The news feed on 2018.02.05:

  • - The index of business activity in the services sector in Germany and the Eurozone at 10:55 (GMT+2:00) and 11:00 (GMT+2:00), respectively;
    - The volume of retail sales in the Eurozone at 12:00 (GMT+2:00);
    - The index of business activity in the non-manufacturing sector in the US at 17:00 (GMT+2:00).

We also recommend you to pay attention to the speech of the head of the ECB Draghi.

EUR/USD

The price has fixed between 50 MA and 200 MA, which are a strong dynamic support and resistance levels.

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

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals to sell EUR/USD.

Trading recommendations
  • Support levels: 1.24400, 1.23900, 1.23400
  • Resistance levels: 1.24700, 1.25100, 1.25500

If the currency pair fixes below the local support of 1.24400, we recommend you to consider sales. The movement is tending potentially to 1.23900-1.23600.

Alternative option. If the EUR/USD quotes overcome the level of 1.24700, we recommend looking for entry points to the market to open long positions. The movement is tending potentially to the round level of 1.25100-1.25300.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.42516
  • Open: 1.41038
  • % chg. over the last day: -1.00
  • Day's range: 1.40934 – 1.41074
  • 52 wk range: 1.2106 – 1.4345

On Friday, the bearish sentiment was observed on the GBP/USD currency pair. Quotes fell by almost 200 points. At the moment, the trading instrument is consolidating in the range of 1.40900-1.41400. Positions need to be opened from the key support and resistance levels. We recommend you to pay attention to the statistics from the UK and the USA.

At 11:30 (GMT +2:00), the index of business activity in the services sector in the UK will be published.

GBP/USD

Indicators show the power of sellers. The price has fixed below 50 MA and 200 MA, which indicates the bearish sentiment.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.40900, 1.40400, 1.40000
  • Resistance levels: 1.41400, 1.42000, 1.42700

If the price fixes below support level of 1.40900, we recommend considering sales of GBP/USD. The movement is tending potentially to 1.40400-1.40000.

Alternative option. If the price fixes above the 1.41400 mark, it is necessary to look for entry points to the market to open long positions. The target movement level is 1.42000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22639
  • Open: 1.24922
  • % chg. over the last day: +1.29
  • Day's range: 1.24128 – 1.24260
  • 52 wk range: 1.2059 – 1.3795

On Friday, positive economic data was published in the US, as a result the US currency has strengthened. The bullish sentiment prevailed on the USD/CAD currency pair. The quotes rose by almost 200 points. At the moment, the trading instrument is consolidating in the range of 1.24100-1.24350. Today we recommend you to pay attention to the US economy news feed. Positions should be opened from the key levels.

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

USD/CAD

Indicators show the buyers power. The price has fixed above 50 MA and 200 MA, which indicates a bullish sentiment.

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

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which also signals to buy USD/CAD.

Trading recommendations
  • Support levels: 1.24100, 1.23800, 1.23400
  • Resistance levels: 1.24350, 1.24600, 1.25000

If the price fixes above the resistance level of 1.24350, we recommend you to consider purchases of USD/CAD. The movement is tending potentially to 1.24600-1.25000.

Alternatively, USD/CAD may decline to 1.23800-1.23400.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.391
  • Open: 110.200
  • % chg. over the last day: +0.64
  • Day's range: 109.757 – 109.913
  • 52 wk range: 107.33 – 115.51

On Friday, purchases prevailed on the USD/JPY currency pair. Positive economic reports and the 10-year US bonds yield contributed to the growth of the quotes by more than 100 points. However, by the end of the trading day and during today's Asian session, the trading instrument began to decline. At the moment, the key support and resistance levels are 109.700 and 110.000, respectively. We recommend you to pay attention to statistics on the US economy. Positions must be opened from the key levels.

The news feed on Japan's economy is calm.

USD/JPY

The price is testing the 50 MA mark, which is a strong dynamic support level.

The MACD histogram is near 0 mark. There are no precise signals.

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

Trading recommendations
  • Support levels: 109.700, 109.300, 108.900
  • Resistance levels: 110.000, 110.400, 110.700

If the price fixes below the support level of 109.700, it is necessary to consider selling of USD/JPY. The movement is tending potentially to 109.300-108.900.

An alternative may be the growth of the USD/JPY currency pair to 110.400-110.700.

by JustForex, 2018.02.05

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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