Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.06694
Opening: 1.06718
Chg. % of the last day: +0.03
Daily range: 1.06676 – 1.06852
52-week range: 1.0366 – 1.1616

Yesterday, the euro kept a key support level of 1.06500, which caused the bullish sentiment in the afternoon. The technical pattern indicates the correction of the EUR/USD currency pair. A fairly strong reversal formation of technical analysis – price divergence and MACD histogram – has formed on the market. Today, the attention is focused on the preliminary report on the US labor market from ADP and the FOMC protocols.

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The MACD histogram has begun to rise and moved to the positive zone, which indicates the growth of the EUR/USD quotes.

Stochastic Oscillator is in the neutral zone, %K line is above %D line, which also signals to buy EUR/USD.

The economic calendar for 04/05/2017:
– the index of business activity in the German services sector (10:55 GMT+3:00);
– the index of business activity in the services sector of the euro area (11:00 GMT+3:00);
– change in the number of employed in the non-agricultural sector of the US from ADP (15:15 GMT+3:00);
– the index of business activity in the non-manufacturing sector of the US from ISM (17:00 GMT+3:00);
– publication of the FOMC protocols (21:00 GMT+3:00).

Trading recommendations

Support levels: 1.06500
Resistance levels: 1.07000, 1.07600

We believe that a correction may occur on the EUR/USD currency pair. We recommend considering purchases if the price consolidates above the round level of 1.07000. The movement is tending potentially to 1.07400-1.07600.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Opening: 1.24398
Chg. % of the last day: -0.37
Daily range: 1.24220 – 1.24489
52-week range: 1.1986 – 1.5020

Since the beginning of this week, the pound has weakened against the US dollar by more than 100 points. During yesterday’s trading, the GBP/USD currency pair formed a local support level of 1.24200. We are waiting for statistics from Britain.

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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 GBP/USD.

Stochastic Oscillator is located in the neutral zone, %K line crossed %D line. There are no signals at the moment.

At 11:30 (GMT+3:00) the data on the index of business activity in the services sector of Britain will be released.

Trading recommendations

Support levels: 1.24000
Resistance levels: 1.24500, 1.24950

If economic reports from the UK turn out to be weak, the GBP/USD currency pair may continue to decline. The nearest target for profit-taking is 1.24000-1.23750.

An alternative may be the correction of GBP/USD to the level of 1.24950.

Forecast for USD/CAD

Technical indicators of the currency pair:

Prev Opening: 1.33825
Opening: 1.34015
Chg. % of the last day: +0.16
The daily range: 1.33858 – 1.34088
52-week range: 1.2458 – 1.4692

Yesterday’s trading on USD/CAD was very active. At the same time, the unidirectional movement was not observed. The currency kept the resistance level 1.34400, which caused the bearish sentiment. At the moment, USD/CAD is being traded near the already “mirror” resistance of 1.34000.

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Indicators show the strength of the sellers. The MACD histogram has begun to decline and moved to the negative zone, which signals a correction of the USD/CAD currency pair.

Stochastic Oscillator is in the neutral zone, %K line is below %D line, which also gives a sell signal for USD/CAD.

The news background on Canada’s economy is calm today.
   
Trading recommendations

Support levels: 1.33600
Resistance levels: 1.34000, 1.34400

We expect a correction of USD/CAD. We recommend looking for entry points to the market in order to open short positions. The target of movement is 1.33600.

Forecast for the USD/JPY currency pair

Technical indicators of the currency pair:

Opening: 110.740
Chg. % of the last day: -0.13
Daily range: 110.534 – 110.911
52-week range: 99.08 – 123.69

In the Asian session, there were no significant changes in the rate of USD/JPY. Trading was calm. The currency tested the resistance level of 110.750 several times. We expect economic reports from the United States.

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The MACD histogram does not provide accurate signals. The indicator has fixed near the 0 mark.

Stochastic Oscillator is in the neutral zone, %K line is above %D line, which indicates the growth of the USD/JPY currency pair.

It is necessary to pay attention to the news line from the USA.

Trading recommendations

Support levels: 110.200
Resistance levels: 110.750, 111.300

If the statistics on the US economy is positive, a correction to the level of 111.300 may develop on the USD/JPY currency pair.

An alternative may be to further decline of USD/JPY pair to the support level of 110.200.