Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.09295
Opening: 1.08860
Chg. % of the last day: -0.41
Daily range: 1.08742 – 1.08975
52-week range: 1.0366 – 1.1616
Yesterday, the Fed, as expected, kept its monetary policy at the same level. The latest statistics from the US were rather weak. Nevertheless, the regulator said that the economy is stable. The probability of an increase in the rate in June increased significantly. At the moment the FedWatch Tool is at the level of 73.8%. The EUR/USD currency pair is being traded near the support level of 1.08650.
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The MACD histogram is in the negative zone and continues to decline, indicating a bearish sentiment on EUR/USD.
Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also gives a signal to sell EUR/USD.
The economic calendar on May 4, 2017:
– publication of the data on indices of business activity in the euro area (11:00 GMT+3:00);
– the volume of retail sales in the euro area (12:00 GMT+3:00);
– preliminary statistics on the US labor market (15:30 GMT+3:00);
– the trade balance in the USA (15:30 GMT + 3:00).
Trading recommendations
Support levels: 1.08650, 1.07650
Resistance levels: 1.09500
We expect a downward trend in EUR/USD. We recommend considering sales to around 1.08350.
Forecast for the GBP/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.29386
Opening: 1.28670
Chg. % of the last day: -0.55
Daily range: 1.28305 – 1.28816
52-week range: 1.1986 – 1.5020
Yesterday, sales prevailed on GBP/USD, despite positive data on business activity in the construction sector. Theresa May said that some officials from the EU are taking a tough stance in the Brexit process. Today the pound continued to lose ground. The currency overcame the key support level of 1.28500.
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The MACD histogram has fixed in the negative zone and below the signal line, which indicates the strength of sellers at GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which signals to sell GBP/USD.
We are waiting for the data on business activity in the services sector of Britain (11:30 GMT+3:00).
Trading recommendations
Support levels: 1.28000
Resistance levels: 1.28500, 1.29000
If the statistics from the UK is weak, the downward trend in GBP/USD may continue. The movement is tending potentially to the round level of 1.28000.
An alternative option may be the growth of GBP/USD to the level of 1.28900-1.29000.
Forecast for the USD/CAD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.37107
Opening: 1.37290
Chg. % of the last day: +0.15
The daily range: 1.37045 – 1.37458
52-week range: 1.2458 – 1.4692
Yesterday’s auction was very active. At the same time, a unidirectional trend was not observed. The Canadian dollar was in a sideway trend with a fairly wide trading range of 50 points. At the moment, USD/CAD is testing a key resistance of 1.37500. The Canadian currency is under pressure amid the negative dynamics of commodities.
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The MACD histogram has begun to rise and fixed above the signal line, which indicates the growth of the USD/CAD quotes.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals a bullish sentiment on USD/CAD.
News feed from Canada:
– the trading balance (15:30 GMT+3:00);
– speech by the head of the Bank of Canada Poloz (23:25 GMT+3:00).
Trading recommendations
Support levels: 1.36650, 1.35600
Resistance levels: 1.37500
We expect further growth of the USD/CAD quotations. If the price consolidates above the resistance level 1.37500, we recommend you to look for entry points to the market to open long positions. The target level of movement to the round level is 1.38000.
Forecast for the USD/JPY currency pair
Technical indicators of the currency pair:
Prev Opening: 111.991
Opening: 112.729
Chg. % Of the last day: +0.69
Daily range: 112.602 – 112.886
52-week range: 99.08 – 123.69
During yesterday’s trading, buying prevailed on USD/JPY. The yen weakened against the US dollar by more than 70 points. The currency found resistance at 112.850. The 112.250 mark is already a “mirrored” support. We recommend paying attention to the dynamics of the yield of US government bonds.
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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 located in the neutral zone, the %K line crossed the %D line. There are currently no signals.
The news background on the economy of Japan is calm today.
Trading recommendations
Support levels: 112.250, 111.700
Resistance levels: 112.850
We believe that the growth of the USD/JPY currency pair may continue. If the price consolidates above the local resistance of 112.850, it is necessary to consider purchases. The movement is tending potentially to 113.250-113.500.
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