US currency lost its achievements

1 September, 2017

US currency lost its achievements

Yesterday, the US currency lost its achievements due to mixed economic reports. The level of inflation in the US still does not reach the Fed target mark. At the moment, the technical pattern is ambiguous. The EUR/USD currency pair is consolidating before the publication of the report on the labor market in the United States. The key trading range is 1.18700-1.19250.

News background on 2017.09.01:

- Data on business activity in the manufacturing sector of Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
- The report on the labor market in the USA at 15:30 (GMT+3:00);
- The index of business activity in the manufacturing sector of the US from ISM at 17:00 (GMT+3:00).

Indicators do not send accurate signals. The price crossed 50 MA and 200 MA.

The MACD histogram is near the 0 mark.

Stochastic Oscillator is located in the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.18700, 1.17800
Resistance levels: 1.19250, 1.20000, 1.20500

Today we recommend reducing risks when opening positions. Entry points to the market should be sought from the key levels.

If the statistics from the US turns out to be positive, the bearish sentiment may prevail on the EUR/USD currency pair. The movement is tending to 1.17800-1.17500.

An alternative may be the growth of the EUR/USD quotations. The target level of movement is 1.20000-1.20500.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29190
Open: 1.28940
% chg. over the last day: +0.10
Day's range: 1.28590 – 1.29466
52 wk range: 1.1450 – 1.3447

Yesterday's trading on GBP/USD was very active. However, a unidirectional trend was not observed. The currency tested key support and resistance levels 1.28600 and 1.29350, respectively. The technical pattern is still ambiguous. We expect statistics on the labor market in the United States.

At 11:30 (GMT+3:00), the index of business activity in the manufacturing sector of Great Britain will be published.

The signals of the indicators are ambiguous. The price has crossed 50 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 oversold zone, the %K line crosses the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.29000, 1.28600, 1.28000
Resistance levels: 1.29350, 1.29750

If the labor market statistics in the US is optimistic, we recommend considering selling GBP/USD. The movement is tending to 1.28600-1.28250.

An alternative may be the growth of the GBP/USD currency pair to the level of 1.29750-1.30000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.26183
Open: 1.24805
% chg. over the last day: -1.16
Day's range: 1.24499 – 1.24879
52 wk range: 1.2414 – 1.3795

Yesterday, the aggressive sales were observed on USD/CAD. Statistics Canada said that the country's economic growth in the second quarter (year on year) was 4.5%, which is significantly higher than the forecasted value of 3.7%. Some experts believe that in the near future the Bank of Canada can go towards another increase in the interest rate. At the moment, the key trading range is 1.24500-1.25300.

We recommend paying attention to the news background from the USA.

The signals do not send the indicators. The price is below 50 MA and 200 MA, which indicates the power of sellers.

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

Stochastic Oscillator has reached the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/CAD.

Trading recommendations

Support levels: 1.24500, 1.24000
Resistance levels: 1.25300, 1.26000

If the report on the labor market in the US turns out to be weak, the downward trend in USD/CAD may continue. The movement is tending to the round level of 1.24000.

An alternative may be the correction of the USD/CAD quotations to the level of 1.25500-1.26000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 110.228
Open: 109.960
% chg. over the last day: -0.09
Day's range: 109.902 – 110.218
52 wk range: 99.53 – 118.67

Yesterday the USD/JPY currency pair moved away from the local highs. At the moment, the yen is testing a round level of 110.000. The nearest resistance is at the level of 110.600. In the trading instrument, there was an ambiguous technical pattern. The market is waiting for additional drivers. The attention is focused on labor market statistics in the United States.

Today, the news background on the Japanese economy is calm.

Indicators do not send accurate signals. The price is between 50 MA and 200 MA.

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

Stochastic Oscillator has fixed near the overbought zone, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 110.000, 109.400, 108.850
Resistance levels: 110.600, 111.000

If the report on the labor market in the US turns out to be positive, we recommend considering buying USD/JPY. The target level of movement is 110.600-111.000.

Alternatively, USD/JPY may drop to the level of 109.400-109.000.


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