Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 05 September, 2016

General characteristic of the market:

Today, there won’t be distinct trend movements. Volatility on the financial markets will be significantly lower than usual due to the holidays in the USA and Canada. Market participants are focused on the G-20 summit in China.

Crude oil prices show diversified dynamics. During the Asian trading session WTI crude oil increased in price by more than 0.5%. Brent quotes fell by 0.45%. Gold shows a positive trend.

Last week, on Friday, September 2, we published the most important economic data on the US economy. US Bureau of Labor Statistics reported that in August, the number of employed people in non-farm payrolls increased by 151,000 against 275,000 in July. Analysts had expected the figure of 180000. The unemployment rate remained unchanged and amounted to 4.9%.

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.11962

Opening: 1.11566

Chg. % for the last day: -0.38

Day range: 1.11515-1.11822

52-week range: 1.0538-1.1616

Against the background of the weak labor market data in the United States, the single currency added to the price more than 75 pips and reached a local resistance of 1.12475. The currency pair failed to overcome and consolidate above this level, and as a result, a correction occurred on the market.

forex-forecast-eurusd-05-09-2016

The indicators show an ambiguous image. The MACD histogram started to rise, and now is above its signal line, sending a signal to buy EUR/USD.

The Stochastic Oscillator is in the overbought zone, the %K line crossed the %D line, thereby sends a signal to sell.

There is no important news which could have a significant impact on the dynamics of the EUR/USD currency pair today.

Trading recommendations:

Key levels:

Support levels: 1.11725

Resistance levels: 1.12050

At the moment, we recommend to look for the entry points from the key support and resistance levels. We believe that while holding the local support of 1.11725 the price increase to the level of 1.12155 is possible.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32678

Opening: 1.32898

Chg. % for the last day: +0.19

Day range: 1.32854-1.33277

52-week range: 1.2796-1.5659

During the Friday’s trading session the currency kept the support level of 1.32550, as the result, the British currency added to the price more than 100 pips.

forex-forecast-gpbusd-05-09-2016

Indicators show the different signals. The MACD histogram is in the positive zone, but below the signal line. There are no trading signals yet.

The Stochastic Oscillator is in the neutral zone, the %K line below the %D line, sending a signal to sell GBP/USD.

At 11.30 (GMT + 3: 00) the data on the business activity index in the UK services sector will be released.

Trading recommendations:

Key levels:

Support levels: 1.32955

Resistance levels: 1.35510

If the statistics data on the UK economy is optimistic, the currency pair of GBP/USD can rise to the level of 1.34470.

If the data are weak, then the alternative can be the price reduction to the level of 1.32345.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31010

Opening: 1.29678

Chg. % for the last day: -0.79

Day range: 1.29947-1.29110

52-week range: 1.2796-1.5659

Since the end of last week, the currency pair of USD/CAD has been corrected by more than 150 pips. Today the price drop of USD/CAD has continued.forex-forecast-usdcad-05-09-2016

The MACD histogram is in the negative zone and below its signal line, which can be regarded as a signal to sell USD/CAD.

The Stochastic Oscillator is in the oversold zone, the% K line joined the %D line. Currently, there are no signals.

There is no important news which could have a significant impact on the dynamics of the USD/CAD currency pair today.

Trading recommendations:

Key levels:

Support levels: 1.28675

Resistance levels: 1.30865

We recommend to seek entry points for opening short positions. We are waiting for the price reduction to the level of 1.28675.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.226

Opening: 103.956

Chg. % for the last day: +0.72

Day range: 103.278-104.119

52-week range: 99.08-123.69

Over the past two weeks the currency of “safe haven” has significantly weakened against the US dollar. During Friday’s trading session, the dollar rally was stopped by the resistance level of 104.000.

forex-forecast-usdjpy-05-09-2016

The MACD histogram is in the negative zone and below its signal line, sending a signal to sell USD/JPY.

The Stochastic Oscillator is in the oversold zone, the %K line joined the %D line. There are no signals yet.

There is no important news which could have a significant impact on the dynamics of the USD/JPY currency pair today.

Trading recommendations:

Key levels:

Support levels: 103.170

Resistance levels: 104.000

We recommended to consider selling with the USD/JPY currency pair. We are waiting for the price reduction to the level of 102.870.