Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.09240
Opening: 1.08732
Amend. % Of the last day: -0.46
Daily range: 1.08689 – 1.08979
52-week range: 1.0366 – 1.1616
In the course of yesterday’s trading session, the bearish sentiment prevailed on EUR/USD. The euro weakened against the US dollar by more than 50 points. The currency found support at the level of 1.08700. The key resistance is the 1.09300 mark. Demand for the US dollar remains at a fairly high level. We are waiting for the speech of the ECB head.
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The MACD histogram has fixed in the negative area, but above the signal line, which gives a weak signal to sell EUR/USD.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which signals a further fall of EUR/USD.
News line on May 10, 2017:
– speech of the ECB head Draghi (15:00 GMT+3:00);
– export price and import price indices in the USA (15:30 GMT+3:00);
– speech of the FOMC member Rosengren (19:00 GMT+3:00).
Trading recommendations
Support levels: 1.08700
Resistance levels: 1.09300, 1.09850
Our past expectations were confirmed. Today, we recommend opening positions from key levels.
If the price consolidates above the local resistance of 1.09100, it is necessary to consider buying EUR/USD. The movement is tending potentially to 1.09500.
Forecast for the GBP/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.29346
Opening: 1.29331
Chg. % of the last day: -0.04
Daily range: 1.29309 – 1.29849
52-week range: 1.1986 – 1.5020
Yesterday, trading on GBP/USD was very active. At the same time, a unidirectional trend was not observed. The currency was traded in a flat with a rather wide trading range of 40 points. The market is waiting for the meeting of the Bank of England, which will be held this Thursday. At the moment, the key trading range is 1.29500-1.29850.
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The MACD histogram has begun to rise and moved to the positive zone, indicating a bullish sentiment on GBP/USD.
Stochastic Oscillator is near the overbought zone, the %K line crossed the %D line. At the moment there are no signals.
Today, the news background on the economy of Britain is calm.
Trading recommendations
Support levels: 1.29500, 1.29000
Resistance levels: 1.29850
If the price consolidates above the local resistance of 1.29850, you need to look for entry points to the market to open long positions. The immediate goal for profit-taking is 1.30250.
Alternative option. If the price overcomes the support level of 1.29500, we recommend selling GBP/USD to the level of 1.29150-1.29000.
Forecast for USD/CAD
Technical indicators of the currency pair:
Prev Opening: 1.36926
Opening: 1.37194
Chg. % of the last day: +0.22
Daily range: 1.37006 – 1.37326
52-week range: 1.2458 – 1.4692
Since the beginning of this week, the USD/CAD currency pair has formed quite strong support and resistance levels: 1.36500 and 1.37300. At the moment, the Canadian dollar is testing the upper limit of the trading range. The market is waiting for additional drivers.
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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 USD/CAD.
Stochastic Oscillator is near the overbought zone, the %K line is crossing the %D line. There are no signals at the moment.
We recommend paying attention to the news line from the USA.
Trading recommendations
Support levels: 1.36500
Resistance levels: 1.37300, 1.38000
If the price consolidates above the key resistance of 1.37300, it is necessary to consider buying USD/CAD. The target movement level is 1.37800-1.38000. When tracking the position, it is better to use a trailing stop.
Forecast for the USD/JPY currency pair
Technical indicators of the currency pair:
Prev Opening: 113.257
Opening: 113.976
Chg. % of the last day: +0.64
Daily range: 113.621 – 114.118
52-week range: 99.08 – 123.69
Yesterday there were aggressive purchases on USD/JPY again. The yen weakened against the US dollar by more than 100 points. The currency found resistance at 114.250. In the Asian trading session, a local support level of 113.750 was formed. At the moment, the FedWatch Tool is at the level of 83.1%, which significantly supports the demand for the American currency.
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The MACD histogram has fixed in the positive zone and continues to rise, which indicates further growth of the USD/JPY currency pair.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy USD/JPY.
There are no important economic reports from Japan today.
Trading recommendations
Support levels: 113.750, 113.000
Resistance levels: 114.250
The previous forecast was confirmed. If the price consolidates above the local resistance level of 114.250, the growth of USD/JPY may continue. The movement is tending potentially to 114.750-115.000.
Alternative option. We do not exclude the correction of USD/JPY. If the price consolidates below the local support of 113.750, you need to look for entry points to the market in order to open short positions. The target level is 113.250 – 113.000.
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