The Analytical Overview of the Main Currency Pairs on 2019.08.01

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11545
  • Open: 1.10757
  • % chg. over the last day: -0.75
  • Day's range: 1.10337– 1.10805
  • 52 wk range: 1.1034 - 1.1817

Yesterday, the USD significantly strengthened against a basket of world currencies. EUR/USD quotes fell by more than 100 points and updated key extremes. The Fed, as expected, lowered its key interest rate range by 25 basis points to 2.00-2.25%. This event has already been priced. At the same time, the head of the Central Bank, Jerome Powell, said that lowering the base interest rate is not the beginning of easing the monetary policy. Additional support for the US dollar was provided by positive statistics on the labor market published by ADP. Currently, the EUR/USD currency pair is consolidating in the range of 1.10350-1.10800. You should open positions from key levels.

The Economic News Feed for 01.08.2019:

  • - Manufacturing PMI (GER) – 10:55 (GMT+3:00);
  • - Initial Jobless Claims (US) – 15:30 (GMT+3:00);
  • - Manufacturing PMI by ISM (US) – 17:00 (GMT+3:00);
EUR/USD

Indicators point to the strength of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the correction of the EUR/USD currency pair.

Trading recommendations
  • Support levels: 1.10350, 1.10000
  • Resistance levels: 1.10800, 1.11150, 1.11600

If the price consolidates below 1.10350, expect a further drop toward 1.10000.

Alternatively, the quotes can correct toward 1.11100-1.11300.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.21472
  • Open: 1.21512
  • % chg. over the last day: +0.02
  • Day's range: 1.21009 - 1.21614
  • 52 wk range: 1.2101 - 1.3385

GBP/USD is still dominated by bearish sentiment. The hard Brexit scenario continues to put pressure on pound. Demand for the USD grew after comments by the head of the Fed. At the moment, GBP/USD quotes are consolidating in the range 1.21000-1.21600. Participants in financial markets expect a meeting of the Bank of England. Experts predict that the regulator will leave the basic parameters of monetary policy unchanged. We recommend that you pay attention to the comments of representatives of the Central Bank. Positions must be opened from key levels.

The Economic News Feed for 01.08.2019:

  • - Manufacturing PMI (UK) – 11:30 (GMT+3:00);
  • - Key Interest Rate announcement (UK) – 14:00 (GMT+3:00);
GBP/USD

Indicators signal the strength of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.21000, 1.20500
  • Resistance levels: 1.21600, 1.22500, 1.23000

If the price consolidates below 1.21000, expect a further descend toward 1.20600-1.20400.

Alternatively, the price could recover toward 1.22200-1.22500.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31507
  • Open: 1.31891
  • % chg. over the last day: +0.36
  • Day's range: 1.31822 - 1.32187
  • 52 wk range: 1.2727 - 1.3664

The USD/CAD has moved up again. The trading tool has updated the key extremes. The demand for the USD rose after the Fed meeting. CAD is currently testing a local resistance of 1.32200. 1.31850 is already a "mirror" support. USD/CAD quotes have the potential for further growth. Today we recommend to pay attention to economic reports from the USA. Positions must be opened from key levels.

The Economic News Feed for 01.08.2019 is calm.

USD/CAD

Indicators point to the strength of buyers: the price has fixed above 100 MA.

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 crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31850, 1.31500, 1.31200
  • Resistance levels: 1.32200, 1.32500
If the price consolidates above 1.32200, expect further growth toward 1.32500-1.32700.

Alternatively, the price can drop toward 1.31700-1.31500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.612
  • Open: 108.747
  • % chg. over the last day: +0.19
  • Day's range: 108.699 – 109.318
  • 52 wk range: 104.97 – 114.56

On the USD/JPY currency pair, bullish sentiment prevails. During yesterday's and today's trading, the growth of quotations exceeded 60 points. The trading tool found resistance at 109.300. Mark 108.900 is already a "mirror" support. Greenback demand remains high after the Fed meeting. The USD/JPY currency pair has the potential for further growth. Today we recommend paying attention to statistics from the United States. Positions must be opened from key levels.

The Economic News Feed for 01.08.2019 is calm.

USD/JPY

Indicators point to the strength of buyers: the price has fixed above 100 MA.

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

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which points to the correction of USD/JPY quotes.

Trading recommendations
  • Support levels: 108.900, 108.450, 108.250
  • Resistance levels: 109.300, 109.500

If the price consolidates above 109.300, expect further growth of the USD/JPY to 109.500-109.800.

Alternatively, the price could decrease toward 108.600-108.450.

by JustForex, 2019.08.01

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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