The Analytical Overview of the Main Currency Pairs on 2019.10.17

October 17, 2019

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10322
  • Open: 1.10715
  • % chg. over the last day: +0.38
  • Day’s range: 1.10694 – 1.10847
  • 52 wk range: 1.0884 – 1.1623

USD continues to lose ground relative to a basket of world currencies. Yesterday, the growth of EUR/USD quotes exceeded 40 points. The trading instrument approached two-month highs. The US currency came under pressure after the release of a weak US retail sales report for September. At the same time, the growth of the euro was restrained against the background of pessimistic data on inflation in the EU. Financial market participants are waiting for new information regarding the settlement of the trade conflict between Washington and Beijing. Today, investors will evaluate important statistical data from the United States. Positions must be opened from key levels.

The Economic News Feed for 17.10.2019:

  • – A number of indicators on the real estate market (US) – 15:30 (GMT+3:00);
  • – PMI by Philadelphia’s Fed (US) – 15:30 (GMT+3:00);
EUR/USD

The price fixed above 50 MA and 100 MA, which signals the strength of buyers.

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


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The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment.

Trading recommendations
  • Support levels: 1.10550, 1.10200, 1.09900
  • Resistance levels: 1.10850, 1.11000, 1.11300

If the price consolidates above the resistance level of 1.10850, expect further growth toward 1.11200-1.11400.

Alternatively, the quotes could decrease toward 1.10300-1.10100.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27777
  • Open: 1.28255
  • % chg. over the last day: +0.25
  • Day’s range: 1.27492 – 1.28337
  • 52 wk range: 1.1959 – 1.3385

The GBP/USD currency pair stabilized after a significant rally. Investors began to partially fix their positions before the summit of the EU leaders of the European Union, which will be held on Thursday and Friday. Sterling is currently consolidating. The local support and resistance levels are 1.27450 and 1.28550, respectively. In the near future, technical correction is not ruled out. Today, financial market participants will evaluate important economic releases from the UK and the USA. We recommend opening positions from key levels.

At 11:30 (GMT + 3: 00), UK will publish reports on retail sales for September.

GBP/USD

Indicators do not give accurate signals: the price crossed 50 MA.

The MACD histogram has started to decline, indicating a possible correction of the GBP/USD currency pair.

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

Trading recommendations
  • Support levels: 1.27450, 1.26500, 1.25300
  • Resistance levels: 1.28550, 1.29000

If the price consolidates below 1.27450, expect a correction toward 1.26800-1.26300.

Alternatively, the quotes could grow toward 1.29000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31988
  • Open: 1.31997
  • % chg. over the last day: +0.02
  • Day’s range: 1.31914 – 1.32117
  • 52 wk range: 1.2727 – 1.3664

CAD is still in a lateral movement. The technical picture is ambiguous. At the moment, the local support and resistance levels are: 1.31850 and 1.32150, respectively. USD / CAD quotes have the potential to decline. Financial market participants took a wait and see attitude before publishing important economic reports from the USA. We also recommend paying attention to the dynamics of oil quotes. Positions must be opened from key levels.

At 15:30 (GMT + 3: 00), a report will be published on sales in the manufacturing sector of Canada.

USD/CAD

Indicators do not give accurate signals: the price crossed 50 MA.

The MACD histogram is close to 0.

The Stochastic Oscillator is in the overbought zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31850, 1.31700
  • Resistance levels: 1.32150, 1.32400, 1.32700

If the price consolidates below 1.31850, expect a drop toward 1.31600-1.31300.

Alternatively, the quotes could grow toward 1.32400-1.32700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.848
  • Open: 108.751
  • % chg. over the last day: -0.16
  • Day’s range: 108.646 – 108.828
  • 52 wk range: 104.97 – 114.56

The USD/JPY currency pair stabilized after continued growth. The trading instrument is currently consolidating. USD/JPY quotes test local support and resistance levels: 108.550 and 108.900, respectively. In the near future, technical correction is not ruled out. We look forward to publishing important economic releases from the USA. We also recommend keeping track of up-to-date information regarding trade negotiations between Washington and Beijing. Positions must be opened from key levels.

The Economic News Feed for 17.10.2019 is calm.

USD/JPY

Indicators do not give accurate signals: the price is testing 50 MA.

The MACD histogram has approached the 0 mark.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment.

Trading recommendations
  • Support levels: 108.550, 108.200, 107.850
  • Resistance levels: 108.900, 109.300, 109.600

If the price consolidates above 108.900, expect further growth toward 109.300-109.500.

Alternatively, expect the quotes to fall toward 108.250-108.000.

by JustForex