The Analytical Overview of the Main Currency Pairs on 2018.03.02

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21930
  • Open: 1.22621
  • % chg. over the last day: +0.63
  • Day's range: 1.22545 – 1.22664
  • 52 wk range: 1.0492 – 1.2537

Yesterday, there was a variety of trends on the EUR/USD currency pair. The hawkish comments of the Fed's Chairman Jerome Powell supported the US dollar. However, then, the US President Donald Trump announced that he intended to introduce tariffs for steel and aluminum imports. As a result, the dollar has weakened relative to the major currencies, while the EUR/USD quotes rose by almost 100 points. At the moment, the trading instrument is in the range of 1.22500-1.22800. We recommend opening positions from these marks.

Today, the news feed on the Eurozone and the US economy is calm.

EUR/USD

The signals of the indicators are different. The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy 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: 1.22500, 1.22200, 1.21800
  • Resistance levels: 1.22800, 1.23100, 1.23400

If the price fixes below the support level of 1.22500, the EUR/USD quotes are expected to decline. The movement is tending potentially to 1.22200-1.21800.

Alternative option. If the price fixes above 1.22800, it is necessary to look for entry points to the market to open long positions. The movement is tending potentially to 1.23100-1.23400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.37584
  • Open: 1.37719
  • % chg. over the last day: +0.11
  • Day's range: 1.37553 – 1.37730
  • 52 wk range: 1.2106 – 1.4345

There was an ambiguous technical pattern on the GBP/USD currency pair. The pound is still under pressure due to the escalating situation of the Brexit. Investors follow the speech of British Prime Minister Theresa May. The key support and resistance levels are: 1.37500 and 1.37900, respectively. The positions should be opened from these marks.

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

GBP/USD

The price is testing 50 MA, which is a dynamic resistance level.

The MACD histogram is near the 0 mark. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 1.37500, 1.37100, 1.36800
  • Resistance levels: 1.37900, 1.38500, 1.39000

If the price fixes below 1.37500, it is necessary to consider sales of GBP/USD. The movement is tending potentially to 1.37100-1.36800.

Alternative option. If the price fixes above the local resistance of 1.37900, correction of the GBP/USD currency pair is expected. The movement is tending potentially to 1.38500-1.38700.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28295
  • Open: 1.28337
  • % chg. over the last day: 0.00
  • Day's range: 1.28339 – 1.28447
  • 52 wk range: 1.2059 – 1.3795

At the moment, USD/CAD is in a sideways trend. The technical pattern is ambiguous. Investors took a wait-and-see attitude before publishing the report on Canada's GDP. The key support and resistance levels are: 1.28200 and 1.28500, respectively. We recommend opening positions above/below these marks.

At 15:30 (GMT+2:00) data on Canada's GDP will be published.

USD/CAD

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

The MACD histogram is located in the positive zone, but near the 0 mark. There are no signals.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment.

Trading recommendations
  • Support levels: 1.28200, 1.27700, 1.27300
  • Resistance levels: 1.28500, 1.29000

If the price fixes above the resistance level of 1.28500, the further growth of the USD/CAD currency pair is expected. The movement is tending potentially to the round level of 1.29000.

An alternative may be the correction of the USD/CAD quotes to the level of 1.27700-1.27300.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.656
  • Open: 106.213
  • % chg. over the last day: -0.47
  • Day's range: 106.544 – 106.896
  • 52 wk range: 107.33 – 115.51

The USD/JPY currency pair is declining after Donald Trump's statements. During yesterday's trading, the quotes weakened by almost 100 points. Today, the decline continues. At the moment, the key support and resistance levels are: 105.600 and 105.850, respectively. We recommend you opening positions from these levels.

Positive data on inflation in Japan were published during the Asian trading session.

USD/JPY

The price has fixed below 50 MA and 200 MA, which indicates a bearish sentiment.

The MACD histogram is located in the negative zone, below the signal line, which gives a strong signal to sell USD/JPY.

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

Trading recommendations
  • Support levels: 105.600, 105.00
  • Resistance levels: 105.850, 106.200, 106.600

If the price fixes below the support level of 105.600, USD/JPY is expected to fall. The movement is tending potentially to 105.300-105.000.

Alternative option. If the price fixes above the 105.850 mark, it is necessary consider purchases of USD/JPY. The target movement level is 106.200-106.600.

by JustForex, 2018.03.02

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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