Forecast for the EUR/USD currency pair
Prev Opening: 1.06419
Chg. % Of the last day: +0.86
Daily range: 1.07127 – 1.07348
52-week range: 1.0366 – 1.1616
Yesterday, the US dollar weakened against the world currencies. This is due to the publication of a rather weak statistics on the US real estate market and a fall in the yield of government bonds. The single currency added more than 90 points. At the moment, the key trading range is 1.07150-1.07350. We are waiting for data on inflation in the euro area.
The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment on EUR/USD.
Economic reports from the EU:
– the consumer price index in the euro area (12:00 GMT+3:00);
– the trade balance of the euro area (12:00 GMT+3:00).
Also at 21:00 (GMT+3:00) the Fed’s Beige Book will be published.
Support levels: 1.07150, 1.06750
Resistance levels: 1.07350
If the statistics on the EU economy is weak, a correction to the 1.06850 mark may develop on the EUR/USD currency pair.
An alternative may be further growth of the EUR/USD quotations. The movement is tending potentially to 1.07750.
Forecast for the GBP/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.25302
Chg. % of the last day: +2.20
Daily range: 1.28083 – 1.28605
52-week range: 1.1986 – 1.5020
Yesterday, the pound rose sharply against the US currency. The growth of the GBP/USD quotations exceeded 2%. The currency has reached a round level of 1.29000. This is due to the announcement of early elections in the UK. At the moment, Theresa May’s party is ahead of its rivals. The victory in the elections will strengthen its position in the negotiations with the EU. The key trading range is 1.28100-1.28800.
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 has fixed in the neutral zone, the %K line is above the %D line, which indicates further growth of the GBP/USD currency pair.
The publication of important economic reports from Britain is not planned today.
Support levels: 1.28100, 1.27000
Resistance levels: 1.28800
The previous forecast was confirmed. At the moment, we recommend you to open positions from key levels.
We do not exclude the correction on the GBP/USD currency pair after significant growth in the course of yesterday’s trading. If the price overcomes the 1.28100 mark, we recommend selling GBP/USD to the round level of 1.27000.
If the price consolidates above the local resistance of 1.28800, we recommend you to look for entry points to the market to open long positions. The target level of movement is 1.29250-1.29500.
Forecast for USD/CAD
Prev Opening: 1.33152
Chg. % of the last day: +0.45
The daily range: 1.33740 – 1.34219
52-week range: 1.2458 – 1.4692
In the course of yesterday’s trading, a bullish sentiment prevailed on USD/CAD. Today, the Canadian dollar continued to lose ground against the US currency. At the moment, USD/CAD is testing resistance level 1.34250. The nearest support is at 1.33800.
The MACD histogram is located in the positive area and above the signal line, which indicates further growth of the USD/CAD quotes.
Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.
The news background on Canada’s economy is calm today.
Support levels: 1.33800, 1.33400
Resistance levels: 1.34250
We believe that the growth of the USD/CAD currency pair may continue. If the price consolidates above the 1.34250 mark, we recommend considering the purchases. The movement is tending potentially to 1.34500-1.34750.
Forecast for the USD/JPY currency pair
Prev Opening: 108.883
Chg. % Of the last day: -0.45
The daily range: 108.367 – 108.898
52-week range: 99.08 – 123.69
In the Asian trading session, the USD/JPY currency pair held the key demand zone of 108.250-108.500, which caused a bullish sentiment. At the moment, the yen is testing a “mirror” support level of 108.750. The technical pattern indicates the development of the corrective movement.
The MACD histogram has begun to rise and fixed above the signal line, which signals the USD/JPY growth.
Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals yet.
It is necessary to pay attention to the news background on the US economy.
Support levels: 108.750, 108.250
Resistance levels: 109.400
We expect a correction on the USD/JPY currency pair. We recommend considering purchases to around 109.250-109.400.