Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.09829
Opening: 1.10198
Chg. % of the last day: +0.13
Daily range: 1.09570 – 1.10219
52-week range: 1.0366 – 1.1616
On Friday, a rather optimistic report on the labor market in the US was published. In April, 211,000 jobs were created in the non-agricultural sector of the country, which is by 14% more than it was forecasted. The unemployment rate decreased and amounted to 4.4%. The growth of the average hourly wage was 0.3%. At the moment, the probability of an increase in the Fed’s interest rate in June is 87.7%. At the same time, according to preliminary data, in the second round of the presidential elections in France, Macron leads, which supports the euro. The key trading range is 1.09850-1.10200.
The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, which also gives a weak signal to buy EUR/USD.
The publication of important economic reports from the EU and the US is not planned today.
Trading recommendations
Support levels: 1.09850, 1.09500
Resistance levels: 1.10200
If the price consolidates above the round level of 1.10000, we recommend you to look for entry points to the market to open long positions. The movement is tending to 1.10500.
Forecast for the GBP/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.29214
Opening: 1.29831
Chg. % of the last day: +0.46
Daily range: 1.29480 – 1.29890
52-week range: 1.1986 – 1.5020
On the GBP/USD currency pair, the bullish sentiment prevails. Over the past month, the pound has grown against the US dollar by more than 4.5%. At the moment, the key levels of support and resistance are 1.29500 and 1.29850 respectively. The attention is focused this week on the meeting of the Bank of England.
The MACD histogram is in the positive zone and continues to rise, indicating further growth of GBP/USD.
Stochastic Oscillator has reached the overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.
At 10:30 (GMT+3:00), the housing price index from Halifax will be published.
Trading recommendations
Support levels: 1.29500, 1.29000
Resistance levels: 1.29850
If the price consolidates above the local resistance of 1.29850, we recommend considering buying GBP/USD. The target level of traffic is 1.30250-1.30500. When tracking the position, it is better to use a trailing stop.
Forecast for USD/CAD
Technical indicators of the currency pair:
Prev Opening: 1.37487
Opening: 1.36538
Chg. % Of the last day: -0.71
The daily range: 1.36429 – 1.36741
52-week range: 1.2458 – 1.4692
On Friday, a correction was observed on USD/CAD. The currency held a round level of 1.38000, which triggered aggressive sales. The Canadian dollar added more than 90 points. At the moment USD/CAD is testing the key support level 1.36500.
The MACD histogram is located in the negative area, but above the signal line, which gives a weak signal to sell USD/CAD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals an increase in USD/CAD.
At 15:15 (GMT+3:00) the data on the construction of new homes in Canada will be released.
Trading recommendations
Support levels: 1.36500
Resistance levels: 1.37500, 1.38000
At the moment, the technical pattern on USD/CAD is mixed. It is better to open positions from key levels.
If the price consolidates below the key support level of 1.36500, the correction on USD/CAD may continue. The target level of movement to the round level is 1.36000.
If the price consolidates above the 1.36850 mark, an upward trend may develop on the USD/CAD currency pair. The movement is tending potentially to the “mirror” resistance level of 1.37500.
Forecast for the USD/JPY currency pair
Technical indicators of the currency pair:
Prev Opening: 112.456
Opening: 112.964
Amend. For the last day: +0.23
Daily range: 112.540 – 112.964
52-week range: 99.08 – 123.69
Despite the positive report on the labor market in the US, the USD/JPY currency pair was unable to overcome the round level of 113.000. The nearest support is 112.250. Trading in the Asian session was calm.
The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy USD/JPY.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the USD/JPY correction.
The news background on the economy of Japan is calm today.
Trading recommendations
Support levels: 112.250, 111.700
Resistance levels: 113.000
If the USD/JPY quotes consolidate above the 112.750 level, we recommend you to look for entry points in order to open long positions. The movement is tending potentially to 113.250.
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