Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.05877
Opening: 1.05961
Chg. % Of the last day: +0.14
Daily range: 1.05799 – 1.06018
52-week range: 1.0366 – 1.1616
Yesterday’s trading on EUR/USD was very calm. The currency was being traded in a rather narrow trading range. At the moment the EUR/USD quotes are testing the support level of 1.05750.
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The signals of the indicators vary. The MACD histogram is in the negative zone and continues to decline, indicating a bearish sentiment on EUR/USD.
Stochastic Oscillator went out of the oversold zone, %K is above %D, which signals the growth of the EUR/USD currency pair.
Today we recommend to pay attention to the following events:
– ZEW economic sentiment index in Germany (12:00 GMT+3:00);
– the volume of industrial production in the euro area (12:00 GMT+3:00);
– ZEW economic sentiment index in the euro area (12:00 GMT+3:00);
– the number of open vacancies in the JOLTS labor market (17:00 GMT+3:00);
– speech of FOMC member Kashkari (20:45 GMT+3:00).
Trading recommendations
Support levels: 1.05750
Resistance levels: 1.06400
If the statistics from the EU is positive, a correction to the resistance level of 1.06400 may develop on the EUR/USD currency pair.
An alternative may be a further reduction of the EUR/USD currency pair to around 1.05250.
Forecast for the GBP/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.23777
Opening: 1.24136
Chg. % of the last day: +0.32
Daily range: 1.24095 – 1.24328
52-week range: 1.1986 – 1.5020
Yesterday, a correction was observed on the GBP/USD currency pair. The pound grew against the US dollar by more than 50 points. The currency has reached a local resistance of 1.24250. Round-level 1.24000 acts as a “mirror” support. We are waiting for statistics from the UK.
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The MACD histogram is located in the positive area, but below the signal line, which gives a weak signal to buy GBP/USD.
Stochastic Oscillator is in the neutral zone, %K line is below %D line, which signals to buy GBP/USD.
At 11:30 (GMT+3:00) the consumer price index of Britain will be published.
Trading recommendations
Support levels: 1.24000, 1.23650
Resistance levels: 1.24500
If inflation data in Britain are positive, the correction of the GBP/USD currency pair may continue. The movement is potentially tending to 1.24500-1.24750.
An alternative may be the fall of GBP/USD to the support level of 1.23650.
Forecast for USD/CAD
Technical indicators of the currency pair:
Prev Opening: 1.33957
Opening: 1.33246
Chg. % Of the last day: -0.61
Daily range: 1.33138 – 1.33337
52-week range: 1.2458 – 1.4692
Yesterday, USD/CAD saw aggressive sales. The Canadian dollar added more than 70 points. The currency found support at 1.33150. The key resistance is the level of 1.33550.
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The MACD histogram has fixed in the negative zone, but above the signal line, which gives a weak signal to sell USD/CAD.
Stochastic Oscillator is near the oversold zone, %K line is below %D line, which also gives a weak signal to sell USD/CAD.
There are no important economic reports from Canada today.
Trading recommendations
Support levels: 1.33150
Resistance levels: 1.33550, 1.34000
Yesterday’s forecast worked itself well. We believe that the downward trend in USD/CAD may continue. If the price overcomes the support level of 1.33150, we recommend you to look for entry points to the market to open short positions. The nearest target for profit-taking is 1.32700.
Forecast for USD/JPY currency pair
Technical indicators of the currency pair:
Prev Opening: 111.061
Opening: 110.918
Chg. % of the last day: -0.25
Daily range: 110.458 – 110.932
52-week range: 99.08 to 123.69
At the moment there is an increased demand for safe assets. This is due to the growing geopolitical risks in the Middle East. During the Asian trading session, the yen rose against the US currency by more than 40 points. The technical pattern on USD/JPY indicates the bearish sentiment.
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The MACD histogram has fixed in the negative zone and below the signal line, which indicates a further drop in the USD/JPY quotes.
Stochastic Oscillator has reached the oversold zone, %K line is below %D line, which gives a weak signal to sell USD/JPY.
The news background on the economy of Japan is calm today.
Trading recommendations
Support levels: 110.200
Resistance levels: 110.750, 111.300
We expect a bearish sentiment on the USD/JPY currency pair. We recommend you to consider sales to the round level of 110,000.
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