The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2185
Prev Close: 1.2177
% chg. over the last day: -0.07 %
On Thursday, EUR/USD was closed in the red zone despite the positive political background. The bearish intraday trend was likely driven by low liquidity ahead of the weekend close. But the currency pair remains in an uptrend by all indications. The signals about the change in the situation have not yet been received.
Trading recommendations
Support levels: 1.2151, 1.2130
Resistance levels: 1.2273
The main scenario: buying on a decline. The positive background from the political side supports the bulls in this pair. Technical indicators demonstrate the strengthening of the northern signal. The ADX is gradually growing as the price rises, and quotes were able to fix above the moving averages. However, the pair is still in the “triangle” pattern, which is alarming. A breakdown of the price of 1.2240 from the bottom up will give a more reliable northern signal.
Alternative scenario: if the price can fix below 1.2180, there is a possibility that the price will move further to 1.2130, and the break-through of the last point may signal a complete reversal.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3491
Prev Close: 1.3533
% chg. over the last day: +0,31 %
At the end of Thursday, the sterling managed to increase in value against the background of the positive political decisions for the market. During the Asian session, the pair continues to rise and tries to fix above the first resistance level. It should be considered that the liquidity will be low today since it is a day off in Britain and direction can change dramatically.
Trading recommendations
Support levels: 1.3287, 1.3187
Resistance levels: 1.3623
The main trading scenario: buying on a decline. The currency pair is close to its main resistance – the December maximum, the break-through of which will indicate further growth towards the April 2018 values in the area of 1.40. Until a break-through has occurred, you should be vigilant. The chart is still showing a “double top” pattern, which may indicate a limitation of growth. The ADX shows weak growth dynamics, although the upward movement is reflected as the true one.
Alternative scenario: if the pair fixes below 1.3444, the northern scenario is likely to be canceled and the pair will be stuck in the range again.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 103.55
Prev Close: 103.68
% chg. over the last day: +0.12 %
Calm trading in this currency pair continues. Volatility is gradually decreasing within a month. Despite the growth of the main stock index S&P 500, the yen makes minor attempts to increase in price against the dollar and the currency pair is declining again in the Asian session. The picture is becoming more and more confusing.
Trading recommendations
Support levels: 103.26, 102.89
Resistance levels: 103.73, 104.15
The main scenario: trading in a sideways range. The indicators start sending different signals. The ADX indicates growth as a true move with high potential. At the same time, the MACD moved into the negative zone, and the price fixed below the moving averages SMA 50 and SMA 100. The pair is likely to continue trading in a narrow sideways range for some time.
An alternative scenario assumes a break-through of 103.26 and the development of a further fall. In case of breaking 103.73, further growth to 104.15 or higher is likely.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2843
Prev Close: 1.2839
% chg. over the last day: -0.03 %
On Thursday, USD/CAD couldn’t keep the uptrend in trading. The growth of impetus has weakened. Oil quotes continued to rise amid positive results from the Brexit negotiations and decisions on a stimulus package for the economy in Washington. Being under pressure, the dollar index additionally hinders the growth of the pair.
Trading recommendations
Support levels: 1.2789, 1.2689
Resistance levels: 1.2954, 1.3079
The main scenario is range trading. Against the background of low market liquidity within the day, it is difficult to expect serious price changes. Even though the Canadian dollar has lost its growth momentum, the bears are in no hurry to attack. The price is still above the moving averages. The MACD is near zero. This indicates a slow sideways trend.
Alternative scenario: if the price manages to return below 1.2787, the southern trend may resume. A breakdown of 1.2954 will indicate renewed growth.
