Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 08 September, 2016

General characteristic of the market:

Black gold continues to show positive dynamics. During the Asian trading session, WTI crude oil rose by more than 2% against the background of the US stocks decline. According to the American Petroleum Institute (API), during the week ending ob September 2, black gold reserves decreased by 12.1 mln. barrels. Analysts expected the index to increase by 225,000 barrels.

Demand for the currency of “safe haven” is preserved because of optimistic data on the Japanese economy. The Secretariat of the Cabinet of Ministers of Japan said that the country’s GDP grew by 0.2% (q/q) against the market expectations of 0.0%.

Today the ECB proceedings will take place (at 14:45 – GMT +3: 00), where the decision regarding the future monetary policy of the Central Bank will be adopted. Most experts agree that the regulator will keep interest rates unchanged. The extension of the assets repurchase program is possible.

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.12550

Opening: 1.12391

Chg. % for the last day: -0.15

Day range: 1.12650-1.12346

52-week range: 1.0538-1.1616

The last few trading sessions, the currency pair of EUR/USD is in flat and is being tradув between the support and resistance levels of 1.12350 and 1.12650.

forex-forecast-eurusd-08-09-2016

The indicators show an ambiguous image. The MACD histogram is in the positive zone and above its signal line, indicating to buy EUR/USD.

The Stochastic Oscillator is near the overbought zone, the %K line is above the %D line. There are no signals at the moment.

We recommend to pay attention to the news background on the EU economy.

Trading recommendations:

Support levels: 1.12350, 1.11800

Resistance levels: 1.12650

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

An alternative can be the price overcoming and fixing above the resistance level of 1.12650. An increase up to the level of 1.13300 is possible.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.34391

Opening: 1.33393

Chg. % for the last day: -0.75

Day range: 1.33330-1.33427

52-week range: 1.2796-1.5659

During yesterday’s trading session, the pound corrected against the US dollar by more than 100 points on the back of weak statistical data on the UK economy. According to the Office for National Statistics data, in July, the production volume in the manufacturing industry decreased and accounted for -0.9%. Market expectations were at -0.4%.

forex-forecast-gpbusd-08-09-2016

The indicators show an ambiguous image. The MACD histogram started to rise, and is above its signal line, indicating to buy GBP/USD.

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

Trading recommendations:

Support levels: 1.33500, 1.32450

Resistance levels: 1.34400

Yesterday’s forecast was confirmed. In the case of holding the support level of 1.33500, the GBP/USD currency pair can grow to the level of 1.34400.

Alternatively, the price can overcome and fix below the support level of 1.33500. The correction may continue to the level of 1.32450.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.28435

Opening: 1.28832

Chg. % for the last day: +0.31

Day range: 1.28564-1.28921

52-week range: 1.2458-1.4692

Yesterday the Canadian dollar slightly corrected (by over 60 pips) against the US dollar on the back of the published statistics on the Canadian economy. The Business School of Richard Ivey report showed that last month the country’s business activity index fell by 8.2% to 52.3. Predictive value was at the level of 55.4.

forex-forecast-usdcad-08-09-2016

The MACD histogram fell into the negative zone and now is below the signal line, indicating to sell USD/CAD.

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

There is no important news and statistics on Canada’s economy today.

Trading recommendations:

Support levels: 1.28600, 1.28300

Resistance levels: 1.29250

At the moment the currency pair of USD/CAD is being traded near the “mirror” support level of 1.28600. If this level is kept, the correction may continue up to around 1.29250.

If the price consolidates below the level of 1.28600, the downward movement to the level of 1.28100 is possible.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 102.023

Opening: 101.738

Chg. % for the last day: -0.28

Day range: 101.627-101.918

52-week range: 99.08-123.69

Since the beginning of the week the currency of “safe haven” rose in price by more than 250 pips. Demand for the yen is being preserved thanks to optimistic data on Japan’s GDP.

forex-forecast-usdjpy-08-09-2016

The indicators show an ambiguous image. The MACD histogram is in the negative zone and continues to decline, indicating to sell USD/JPY.

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

Trading recommendations:

Support levels: 101.250

Resistance levels: 102.300, 103.200

We recommended to seek entry points to open short positions with the currency pair of USD/JPY. Is the local resistance of 101.650 is kept, the yen rally may continue to the level of 101.000.