Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 07 September, 2016

General characteristic of the market:

The last three trading sessions, oil prices show a positive trend due to the optimistic market moods associated with the agreement of Russia and Saudi Arabia to stabilize the market of black gold. During this period, WTI crude oil has increased in price by more than 2.5%.

Yesterday the important statistical data on the US economy was released. According to the Institute for Supply Management (ISM) materials, in August, the business activity index in the non-manufacturing sector of the country decreased by 7.4% to 51.4. Predictive value was at the level of 55.0.

During the Asian session, the Australian dollar was slightly corrected after yesterday’s rally against weak data on GDP. In the second quarter, the growth of the Australian economy grew by 0.5% (m/m). Market expectations were at the level of 0.6%.

The pressure on the single currency is caused by published data on the volume of industrial production in Germany. In July, the index decreased by 1.5%. Analysts had expected an increase of 0.2%.

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.11471

Opening: 1.12550

Chg. % for the last day: +0.98

Day range: 1.12653-1.12329

52-week range: 1.0538-1.1616

During yesterday’s trading session, the euro strengthened significantly (over 100 pips) against the US dollar against the background of weak economic data from the United States. At the moment, the currency is being traded near the resistance level of 1.12500.

forex-forecast-eurusd-07-09-2016

The MACD histogram is declining and now is below the signal line, indicating a possible correction of EUR/USD.

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

Trading recommendations:

Support levels: 1.12350, 1.11800

Resistance levels: 1.12500

In the case of breaking through the local support of 1.12350 the downward movement to the level of 1.11800 is possible.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33027

Opening: 1.34391

Chg. % for the last day: +1.01

Day range: 1.34402-1.34234

52-week range: 1.2796-1.5659

Yesterday, the pound was supported against the background of weak statistical data on the US economy, as a result, the currency pair of GBP/USD rose by more than 1%.

forex-forecast-gpbusd-07-09-2016

The indicators show an ambiguous image. The MACD histogram started to decline and is below the signal line, indicating a possible correction of GBP/USD.

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

Today important stats on the UK economy will be released:

The production volume in the manufacturing industry will be published at 11.30 (GMT + 3: 00);

A press conference of the head of the Bank of England Carney will be held at 16:15 (GMT + 3: 00).

Trading recommendations:

Support levels: 1.33500, 1.32450

Resistance levels: 1.34400

Yesterday’s forecast was confirmed. At the moment, we are expecting a corrective movement of the currency pair of GBP/USD. In the case of the price breaking through and fixing below the local support level of 1.34000 the downward movement to the levels of 1.33500 and 1.32450 is possible.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.29241

Opening: 1.28435

Chg. % for the last day: -0.65

Day range: 1.28616-1.28491

52-week range: 1.2458-1.4692

On Tuesday, the Canadian dollar continued its rise against the US dollar. The currency pair of USD/CAD declined in its price by more than 90 pips.

forex-forecast-usdcad-07-09-2016

The MACD histogram started to rise, and is above its signal line, indicating a possible correction of USD/CAD.

The Stochastic Oscillator is in the neutral zone, the%K line is above the line of D%, indicating to buy USD/CAD.

We recommend to pay attention to the news background. Today a resolution on the Bank of Canada interest rate will be adopted and the data on the (PMI) Ivey business activity index will be released.

Trading recommendations:

Support levels: 1.28300

Resistance levels: 1.28600, 1.29250

Yesterday’s forecast was confirmed. In the case of the breaking through the support level of 1.28300, be sure to look for entry points for opening short positions. The downside movement to the level of 1.27900 is possible.

An alternative can be the breaking through the resistance of 1.28600 and the price increase to the level of 1.29250.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.419

Opening: 102.023

Chg. % for the last day: -1.37

Day range: 103.800-103.257

52-week range: 99.08-123.69

The last few trading sessions there has been an increased demand for the currency of “safe haven”. The decline of the currency pair of USD / JPY was more than 250 pips.

forex-forecast-usdjpy-07-09-2016

The indicators show a possible correction. The MACD histogram started to rise, and is above the signal line.

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

Trading recommendations:

Support levels: 101.250

Resistance levels: 101.750, 102.300

In the case of the price breaking through and fixing below the support level of 101.250, the downward movement to the level of 100.500 is possible.

An alternative can be the breaking through the resistance of 101.750 and the price rising to 102.300.