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

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.12041
Opening: 1.11489
Chg. % for the last day: -0.48
Day range: 1.11071-1.11524
52-week range: 1.0538-1.1616

The last few trading sessions, the euro is under pressure. The EUR/USD currency pair fell by more than 100 pips. The US dollar continues to strengthen, despite the optimistic data on industrial production in Germany.

forex-forecast-eurusd-07-10-2016

The MACD histogram indicates a continuation of bearish moods on the EUR/USD currency pair. The indicator is in the negative zone and below the signal line.

The Stochastic Oscillator indicates the development of a corrective movement. The indicator came out of the oversold zone, the %K is above the %D line.

Today, we should expect increased volatility and trading activity on the financial markets due to the eventful news background on the US economy, which significantly affect the balance of forces of the US dollar against the foreign exchange “majors”:
– Change of the employed people number in the non-agricultural sector of the country (15:30 GMT + 3);
– Unemployment level (15:30 GMT + 3);
– FOMC Member Fisher’s speech.

Trading recommendations:

Support levels: 1.11000
Resistance Levels: 1.11500, 1.11950

If statistics from the USA is positive, the decline of EUR/USD may continue to the level of 1.10250.

An alternative may be a correction to the resistance level of 1.11500 and 1.11950.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.27456
Opening: 1.26160
Chg. % for the last day: -1.04
Day range: 1.20166-1.26192
52-week range: 1.2016-1.5513

During the Asian trading session, the pound has fallen to a minimum of 30 years due to investors’ fears about the “hard” Britain withdrawal from the EU and the low liquidity of the market. At the moment, the pound managed to recover most of the losses. Nevertheless, the GBP/USD currency pair remains vulnerable to further decline.

forex-forecast-gpbusd-07-10-2016

The MACD histogram has fixed in the negative zone and below its signal line, indicating selling of GBP/USD.

The Stochastic Oscillator is near overbought levels, the %K line is above the %D line, that delivers a weak signal of the correction continuation on the GBP/USD currency pair.

News feed:
– The volume of production in the manufacturing industry in Britain (11:30 GMT + 3:00);
– The trading balance of the United Kingdom (11:30 GMT + 3:00).

Trading recommendations:

Support levels: 1.24000, 1.20500
Resistance Levels: 1.26000

Currently, the pound remains under pressure. The volatility on GBP/USD is very high. We recommend to reduce risks while trading this tool.

If statistics on the British economy is optimistic, the GBP/USD currency pair can rise to the level of 1.25500.

In the case of positive data on the US labor market, the GBP/USD quotes may continue to fall to the local support level of 1.23500.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31758
Opening: 1.32138
Chg. % for the last day: +0.31
Day range: 1.32086-1.32636
52-week range: 1.2458-1.4692

Over the last week, the USD/CAD currency pair rose by more than 140 pips. Currently, the Canadian dollar is being traded near the resistance level of 1.32600. A further driver of USD/CAD may be today’s report on the US labor market.

forex-forecast-usdcad-07-10-2016

The MACD histogram is in the positive zone and above the signal line, which gives a signal to buy USD/CAD.

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

We recommend to pay attention to the publication of important statistics on the Canadian economy:
– Employment change (15:30 GMT + 3:00);
– Unemployment level (15:30 GMT + 3:00);
– PMI Ivey (17:00 GMT + 3:00).

Trading recommendations:

Support levels: 1.31650
Resistance Levels: 1.32600

If the data on the labor market in Canada is strong, the USD/CAD currency pair may correct the local support level of 1.32000.

An alternative could be a continuation of the upward trend on the USD/CAD currency pair to the level of 1.33500.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.404
Opening: 103.937
Chg. % for the last day: +0.43
Day range: 103.527-104.041
52-week range: 99.08-123.69

The last two weeks the USD/JPY currency pair is under bullish moods. The yen lost in price against the US dollar more than 350 pips. At the moment, the currency is being traded near the “mirror” support level of 103.650.

forex-forecast-usdjpy-07-10-2016

Indicators point to the development of corrective movement on the USD/JPY currency pair. The MACD histogram has started to decline and fixed below the signal line.

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

We recommend to pay attention to statistics from the US.

Trading recommendations:

Support levels: 102.650, 103.650
Resistance levels: 104.250

We expect the development of corrective movement on the USD/JPY currency pair. Quotes may achieve the local support level of 103.000.