The Analytical Overview of the Main Currency Pairs on 2018.08.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13752
  • Open: 1.14375
  • % chg. over the last day: +0.54
  • Day's range: 1.14361 – 1.14394
  • 52 wk range: 1.0571 – 1.2557

On Friday, the bullish sentiment was observed on the EUR/USD currency pair. Financial market participants began to fix short positions after the continuous rally of the US currency. At the moment, the key support and resistance levels are 1.14000 and 1.14400, respectively. We recommend opening positions from these marks. The trading instrument has the potential for further growth. Trade negotiations between the US and China are in the focus of attention.

The news feed on the US economy and the Eurozone is calm.

EUR/USD

Indicators do not send accurate signals: the price has fixed between 50 MA and 200 MA.

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

Stochastic Oscillator is in the oversold zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.14000, 1.13600, 1.13200
  • Resistance levels: 1.14400, 1.14800, 1.15200

If the price fixes above the resistance level of 1.14400, further growth of the EUR/USD currency pair is expected. The movement is tending to 1.14800-1.15000.

Alternative option. If the price fixes below the round level of 1.14000, it is necessary to look for entry points to the market to open short positions. The movement is tending to 1.13600-1.13400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27066
  • Open: 1.27423
  • % chg. over the last day: +0.26
  • Day's range: 1.27405 – 1.27493
  • 52 wk range: 1.2361 – 1.4345

The technical pattern on the GBP/USD currency pair is ambiguous. At the moment, quotes are in a sideways trend. The key support and resistance levels are 1.27200 and 1.27600, respectively. In the near future, we expect correction of the GBP/USD currency pair. Positions should be opened from the key levels.

The news feed on the UK economy is calm.

GBP/USD

Indicators do not send accurate signals: the price has fixed between 50 MA and 200 MA.

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

Stochastic Oscillator is located in the neutral zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.27200, 1.26800
  • Resistance levels: 1.27600, 1.28000, 1.28400

If the price fixes above 1.27600, the GBP/USD currency pair is expected to grow. The target movement level is 1.28000-1.28400.

An alternative may be decrease of the GBP/USD quotes to 1.26800-1.26600.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31537
  • Open: 1.30598
  • % chg. over the last day: -0.71
  • Day's range: 1.30598 – 1.30708
  • 52 wk range: 1.2059 – 1.3795

On Friday, there were aggressive sales on the USD/CAD currency pair. The decrease in quotes exceeded 100 points. At the moment, financial market participants expect additional drivers. Local support and resistance levels are 1.30500 and 1.30800, respectively. We recommend opening positions from these marks. The trading instrument has the potential for further reduce.

Publication of important news is not expected in Canada.

USD/CAD

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

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

Stochastic Oscillator is located in the neutral zone, the %K line crossed the %D line. There are no accurate signals.

Trading recommendations
  • Support levels: 1.30500, 1.30200, 1.30000
  • Resistance levels: 1.30800, 1.31200, 1.31500

If the price fixes below 1.30500, the USD/CAD quotes are expected to decline. The movement is tending to 1.30200-1.30000.

Alternative option. If the price fixes above the resistance of 1.30800, it is necessary to consider purchases of USD/CAD. The movement is tending to 1.31200-1.31500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.870
  • Open: 110.593
  • % chg. over the last day: -0.35
  • Day`s range: 110.591 – 110.684
  • 52 wk range: 104.56 – 114.74

On Friday, the bearish sentiment was observed on the USD/JPY currency pair. The decrease in quotes exceeded 60 points. At the moment, the trading instrument is in a sideways trend. Local support and resistance levels are 110.450 and 110.700, respectively. The positions should be opened from these marks. Financial market participants expect additional drivers.

The news feed on the economy of Japan is calm.

USD/JPY

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

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

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

Trading recommendations
  • Support levels: 110.450, 110.200
  • Resistance levels: 110.700, 111.000, 111.300

If the price fixes above the resistance level of 110.700, the USD/JPY currency pair is expected to grow. The movement is tending to 111.000-111.300.

Alternative option. If the price fixes below the level of 110.450, it is necessary to consider sales of USD/JPY. The movement is tending to 110.200-110.000.

by JustForex, 2018.08.20

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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