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

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.12110
Opening: 1.12047
Chg. % for the last day: -0.06
Day range: 1.12003-1.12285
52-week range: 1.0538-1.1616

Yesterday, the euro showed diversified dynamics. In the afternoon, the currency got support because of reports of a possible change in the ECB’s monetary policy. The regulator can gradually begin to decrease the buying of assets amounting to 10 billion dollars per month.

forex-forecast-eurusd-05-10-2016

The MACD histogram has moved in the positive zone and is above its signal line, indicating the further strengthening of the single currency.

The Stochastic Oscillator is in the neutral zone, the %K line is beginning to cross the %D line. There are no active signals yet.

News feed:
– An index of business activity in the services sector in Germany (10:55 GMT+3);
– An index of business activity in the EU services sector (11:00 GMT+3);
– The volume of retail sales in the EU (12:00 GMT+3);
– Change in the number of people employed in non-farm payrolls from ADP in the USA (15:15 GMT+3);
– An index of business activity in the non-manufacturing sector from ISM in the USA (17:00 GMT+3).

Trading recommendations:

Support levels: 1.11500, 1.11950
Resistance Levels: 1.12450

We believe that the euro may continue to strengthen against the US dollar. Recommend to consider buying by the resistance level of 1.12750.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.28305
Opening: 1.27279
Chg. % for the last day: -0.90
Day range: 1.26843-1.27460
52-week range: 1.2796-1.5659

The pound remains under pressure due to concerns of market participants that Brexit would have a significant impact on the country’s economic problems. Yesterday’s optimistic statistics from Britain did not support the demand for the pound.

forex-forecast-gpbusd-05-10-2016

There are no clear signals. The MACD histogram has started to rise and fixed above the signal line, indicating a possible correction for GBP/USD.

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

The news feed for the UK economy:
– Speech of a member of the Monetary Policy Broadbent (11:30 GMT + 3:00);
– The index of business activity in the services sector (11:30 GMT + 3:00).

Trading recommendations:

Support levels: 1.27250
Resistance Levels: 1.28500, 1.29350

We expect a continuation of bearish moods on the GBP/USD currency pair. Quotes may achieve the local support level of 1.26500.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31186
Opening: 1.31905
Chg. % for the last day: +0.56
Day range: 1.31715-1.32019
52-week range: 1.2458-1.4692

The last few trading sessions the USD/CAD pair shows an upward trend. At the moment, the currency is being traded near the “mirror” support level of 1.31650.

forex-forecast-usdcad-05-10-2016

The MACD histogram has fixed in the positive zone but is below the signal line, which sends a weak signal to buy USD/CAD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a further increase of USD/CAD.

At 15:30 (GMT+3) the data on the balance of visible trade of Canada will be released.

Trading recommendations:

Support levels: 1.31650, 1.30750
Resistance Levels: 1.32600

Yesterday’s forecast was confirmed. We expect a continuation of the bullish trend on the USD/CAD currency pair by the level of 1.32600.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 101.646
Opening: 102.881
Chg. % for the last day: +1.23
Day range: 102.665-103.010
52-week range: 99.08-123.69

Yen continues to weaken against the US dollar. During yesterday’s trading session the USD/JPY currency pair rose in price by more than 1%. At the moment, the currency is testing the “mirror” support of 102.650.

forex-forecast-usdjpy-05-10-2016

Indicators send signals of a possible correction for USD/JPY. The MACD histogram has started to decline and is below the signal line.

The Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating the decline of USD/JPY.

Important statistics on the Japanese economy will be not released today.

Trading recommendations:

Support levels: 102.650, 101.800
Resistance Levels: 103.000

In the case of keeping the support level of 102.650, the growth of the USD/JPY currency pair may continue to around 103.250.

An alternative could be the development of a corrective movement to the local support of 102.250.