Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 06 September, 2016

General characteristic of the market:

Yesterday the market of black gold an increased volatility against a busy news background. Within the frame of the G20 summit Russia and Saudi Arabia signed an agreement aimed at stabilizing the oil market. By the closing of the trading session, Brent crude increased in price by more than 2%.

Today, as expected, the RBA left its key interest rate unchanged at a record low level of 1.5%. Demand for the currency supports against the background of positive dynamics of oil quotations and optimistic data of payment balance.

Demand for the currency “safe haven” supports because of the head of the Bank of Japan comments. At yesterday’s press conference Haruhiko Kuroda refrained from obvious hints on carrying out aggressive stimulation of the economy in the nearest future.

Today important statistical data on the US economy, which may significantly affect the dynamics and volatility on the currency market, will be released. At 17:00 (GMT +3:00), ISM will release the data on the business activity index in the non-manufacturing sector of the USA.

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.11566

Opening: 1.11471

Chg. % for the last day: -0.11

Day range: 1.11403-1.11686

52-week range: 1.0538-1.1616

During yesterday’s trading session the currency pair of EUR/USD kept the resistance level of 1.11790, as a result, the euro weakened slightly against the US dollar.

forex-forecast-eurusd-06-09-2016

The MACD histogram is above its signal line and continues to rise, indicating a possible increase of EUR/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, thereby gives a signal to buy EUR/USD.

Trading recommendations:

Support levels: 1.11329

Resistance levels: 1.11789

While releasing optimistic data on the US economy and holding the resistance level of 1.11790, the currency pair of EUR/USD may reduce to the level of 1.10860.

An alternative might be the breaking through the resistance level of 1.11790 and the growth of the single currency to the level of 1.12100.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32898

Opening: 1.33027

Chg. % for the last day: +0.07

Day range: 1.33520-1.32979

52-week range: 1.2796-1.5659

Yesterday, research group Markit said that in August, the index of business activity in the UK services sector increased by 11.6% to 52.9, exceeding market expectations at the level of 50.0. The pound increased in price of by more than 80 pips.

forex-forecast-gpbusd-06-09-2016

The indicators show an ambiguous image. The MACD histogram is in the positive zone, above the signal line, indicating the growth of GBP/USD.

The Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, which indicates a possible correction of GBP/USD.

Trading recommendations:

Support levels: 1.32922, 1.32477

Resistance levels: 1.33495

In case of the breaking and the price fixing higher than the resistance level of 1.33500, the GBP/USD currency pair can rise to the mark of 1.34050.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.29678

Opening: 1.29241

Chg. % for the last day: -0.52

Day range: 1.29333-1.28864

52-week range: 1.2458-1.4692

During the Asian trading session, USD/CAD has kept the resistance level of 1.29330. The Canadian dollar continued to strengthen against the US dollar.

forex-forecast-usdcad-06-09-2016

The MACD histogram is in the negative zone and continues to decline, indicating to sell USD/CAD.

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

We recommend to pay attention to the news on the US economy.

Trading recommendations:

Support levels: 1.28452

Resistance levels: 1.29333

In the case of holding the local resistance of 1.29110, be sure to look for entry points to open short positions. The downside movement to the level of 1.28450 is possible.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.956

Opening: 103.419

Chg. % for the last day: -0.48

Day range: 103.800-103.257

52-week range: 99.08-123.69

Over the past few trading sessions, the currency pair formed the key support and resistance levels: 103.200 and 104.000. At the moment, the currency is being traded near the lower bound of the trading range.

forex-forecast-usdjpy-06-09-2016

The MACD histogram is in the negative zone and continues to decline, indicating a possible correction of the USD/JPY.

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

Trading recommendations:

Support levels: 103.200, 102.325

Resistance levels: 104.000

In the case of publication of weak macroeconomic data from the USA, be sure to consider selling for the currency pair of USD/JPY. The price reduction to the support level of 102.325 is possible.

An alternative can be the breaking the resistance of 104.000 and the price growth to the level of 104.860.