Technical Analysis for 23/01/2017
EUR / USD – EURO US DOLLAR
The main event of the previous week is the inauguration of Donald Trump.
This event and the statement of Janet Yellen influenced the US dollar in a negative way. The speech of the European Central Bank manager Mari Draghi can change the situation in favour of the euro.
The currency pair EUR / USD is being traded in the ascending channel. During the night trading session the price touched the upper channel level. During the European session the pair passed the upper line of the ascending channel.
The euro left the level 1,0700 and moved to the level 1,0650.
The support is located at the level 1,0650, the resistance – at the level 1,0700.
MACD is moving downwards, this indicates that the buyers are losing the control over the market. RSI is in the neutral zone and is going to drop.
If the currency pair moves below the level 1,065, traders shall expect the further descending movement. Though if the line of the ascending channel manages to change the quotations movement, then the currency pair EURUSD may move to the next maximum level 1,0720.
GBP / USD – BRITISH POUND DOLLAR
The poor data on the retail prices published by Great Britain influenced the British currency in a negative way. Though the British pound is trying to keep its positions.
During the Asian session the movement of the currency pair GBP / USD stopped at the level 1,2400. Further the currency pair changed the direction and fell to the level 1,2300. In the middle of the European session this level was done and the currency pair GBPUSD dropped till the level 1,2250.
The start of the American session made the British currency move again to the level 1,2300.
The support is at the level 1,2300, the resistance – at the level 1,2400.
MACD is moving downwards. RSI left the overbought zone and is moving southwards.
If the currency pair drops below the level 1,2300, we shall expect its further drop to the level 1,2200.
USD / JPY – US DOLLAR JAPANESE YEN
The Japanese yen is growing in relation to the US dollar.
During the Friday trading session the currency pair USD / JPY continued recovering its positions. The dollar was trying to pass the level 115,00 and had managed to do it before the European session opened. But to the middle of the day the US dollar changed its direction and started dropping again.
The support is at the level 115,00, the resistance – at the level 116,00.
MACD moved in the positive zone. RSI stays in the overbought zone.
The pair USDJPY is expected to grow till the level 116,00. In that case the potential target will be at the level 117,00. Though the descending movement is not excepted as well if the pair manages to drop below 115,00.