Technical Analysis for 24/01/2017
EUR / USD – EURO US DOLLAR
The speech of the new US president after his inauguration added to the pessimistic mood of investors and caused the next drop of the US currency. The euro started growing in price. Volatility in the market is very instable as investors expect the drop of the business activity rate in Germany.
On Monday during the morning trades the euro grew till the level 1,0750, but did not manage to grow more. After testing the level, the currency pair EUR / USD started dropping. Before the American session opened, the euro had continued falling.
The support is located at the level 1,0700, the resistance – at the level 1,0750.
MACD is growing, which is the evidence that the sellers are taking over the control in the market. RSI stays in the overbought zone.
If the currency pair EURUSD manages to grow above the level 1,0750, its further growth to the level 1,0800 is expected. If the pair doesn’t manage to pass the level 1,0750, we can expect the pair`s drop to the level 1,0650.
GBP / USD – BRITISH POUND DOLLAR
On Monday the British currency recovered the losses of the previous trades. Though the pound growth was caused rather not by the economic situation in Great Britain but by the weakness of the American currency after the speech of the new president.
The currency pair GBP / USD passed the level 1,2400 during the Asian session and continued moving upwards. By the level 1,2500 the pair stopped.
The support is located at the level 1,2400, the resistance – at the level 1,2500.
MACD grew, it means that the sellers increase their control over the market. RSI is still in the overbought zone but starts its movement upwards.
Most likely, the currency pair EURUSD will be traded in the ascending movement. If the currency pair manages to pass the level 1,2500, then the next target will move to the level 1,2550.
USD / JPY – US DOLLAR JAPANESE YEN
At the start of the trading week the American currency fell in relation to the Japanese yen. This was caused by the worries regarding the economic policy of Donald Trump.
During the Asian session the currency pair USDJPY stopped for a while by the mark 113,00 and then continued growing till the level 114,00.
The support is located at the level 113,00, the resistance – at the level 114,00.
MACD moved to the negative zone. If the histogram stays there, we shall expect the strengthening of the sellers` position. RSI still stays in the oversold zone.
The currency pair USDJPY may drop till the level 113,00 where it consolidates for a while.