The Analytical Overview of the Main Currency Pairs on 2018.12.05

December 5, 2018

Analytics by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13523
  • Open: 1.13413
  • % chg. over the last day: -0.11
  • Day’s range: 1.13168 – 1.13462
  • 52 wk range: 1.1299 – 1.2557

Yesterday’s trading in major currency majors was very active. At the same time, a unidirectional trend was not observed. The dollar index (#DX) closed the trading session with a slight decrease (-0.07%). Participants of financial markets are concerned about the inversion of the US government bonds yield curve and the risks of a trade war. At the moment, the EUR/USD currency pair is consolidating in the range of 1.13200 and 1.13450. Positions must be opened from these marks.

At 11:00 (GMT+2:00) a number of indices on economic activity in the eurozone will be published.

EUR/USD

Indicators do not send accurate signals: 50 MA has begun to cross 200 MA.

The MACD histogram is in the negative zone and below the signal line, indicating the bearish sentiment.


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Stochastic Oscillator has started to go out of the oversold zone, the %K line is above the %D line, which gives a signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.13200, 1.12800
  • Resistance levels: 1.13450, 1.13700, 1.14000

If the price fixes below the support level of 1.13200, it is necessary to consider selling EUR/USD. The movement is tending to 1.12800-1.12600.

An alternative could be the recovery of the EUR/USD quotes to the level of 1.13700-1.14000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27232
  • Open: 1.27080
  • % chg. over the last day: -0.04
  • Day’s range: 1.26717 – 1.27276
  • 52 wk range: 1.2662 – 1.4378

The technical pattern on the GBP/USD currency pair is still ambiguous. At the moment, quotes are testing key support and resistance levels: 1.26800 and 1.27250, respectively. Investors expect relevant information regarding the Brexit process. Optimistic statistics on the UK business provides additional support for the pound. We recommend opening positions from key levels.

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

GBP/USD

Indicator signals are different. The price has approached 50 MA, which is a strong dynamic resistance.

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 above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.26800, 1.26500
  • Resistance levels: 1.27250, 1.27750, 1.28250

If the price fixes above the resistance level of 1.27250, the GBP/USD quotes are expected to grow. The movement is tending to 1.27750-1.28000.

An alternative could be a decrease in the GBP/USD currency pair to 1.26500-1.26300.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31967
  • Open: 1.32578
  • % chg. over the last day: +0.45
  • Day’s range: 1.32523 – 1.32924
  • 52 wk range: 1.2248 – 1.3387

The USD/CAD currency pair recovered most of its losses after a sharp decline on Monday, December 3. During yesterday’s and today’s trading, the growth of the USD/CAD quotes amounted to almost 100 points. At the moment, Loonie is consolidating near the local resistance of 1.32900. The mark of 1.32600 is already a “mirror” support. Investors took a wait and see attitude before a meeting of the Bank of Canada. It is expected that the regulator will maintain the basic parameters of the monetary policy. Positions must be opened from the key levels.

At 17:00 (GMT+2:00), the Bank of Canada will announce its decision on the key interest rate.

USD/CAD

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

The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy USD/CAD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a drop in the USD/CAD quotes.

Trading recommendations
  • Support levels: 1.32600, 1.32200, 1.31850
  • Resistance levels: 1.32900, 1.33200, 1.33550

If the price fixes above the local resistance of 1.32900, further growth of the USD/CAD quotes is expected. The movement is tending to 1.33200-1.33500.

Alternative option. If the price fixes below 1.32600, we recommend looking for market entry points to open short positions. The movement is tending to 1.32300-1.32000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.604
  • Open: 112.753
  • % chg. over the last day: -0.86
  • Day’s range: 112.896 – 113.657
  • 52 wk range: 104.56 – 114.74

The USD/JPY currency pair is consolidating after a sharp decline during yesterday’s trading. The technical pattern is ambiguous. Local levels of support and resistance are 112.900 and 113.150, respectively. Positions must be opened from these marks. We recommend paying attention to the dynamics of the yield of US government bonds. The USD/JPY currency is tending to decline.

The news feed on the Japanese economy is calm.

USD/JPY

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

The MACD histogram is close to the 0 mark. There are no accurate signals.

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

Trading recommendations
  • Support levels: 112.900, 112.650
  • Resistance levels: 113.150, 113.300, 113.450

If the price fixes below the support level of 112.900, it is necessary to consider selling USD/JPY. The movement is tending to 112.650-112.500.

An alternative could be the growth of the USD/JPY quotes to 113.300-113.500.

Analytics by JustForex