Forecast for the EUR/USD currency pair
Prev Opening: 1.06694
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.
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).
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
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.
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.
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
Prev Opening: 1.33825
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.
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.
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
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.
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.
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.