Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 09 September, 2016

General characteristic of the market:

During the Asian trading session, oil prices corrected after a strong rally this week. During this period, black gold quotes rose by more than 6%. By the close of the Asian trading session, WTI crude oil fell by 0.80% to $ 47.24 per barrel. Brent decreased in the price by more than 0.85% to $ 49.54 per barrel.

Yesterday, as expected, the ECB kept interest rates unchanged at a record low level of 0.00%. The interest rate on deposit funds remained unchanged at -0.4%. The regulator said that the expansion of the quantitative easing program (QE) was not considered at yesterday’s meeting. However, Mario Draghi said that the asset purchase program will last until the target level of inflation in the euro zone reaches the level of 2%.

Yesterday the important statistical data on the US economy were released. The US Labor Department reported that last week the number of initial applications for unemployment benefits fell by 1.5% to 259000. The market expectations were at 265,000.

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.12391

Opening: 1.12587

Chg. % for the last day: +0.20

Day range: 1.12573-1.12685

52-week range: 1.0538-1.1616

Yesterday, the currency pair of EUR/USD observed an increased volatility due to the ECB meeting. The single currency was supported against the background of preservation of the Central Bank monetary policy. The currency pair of EUR/USD rose in the price by more than 80 pips and reached the local resistance level of 1.31150. In the afternoon there was a correction on the market.

forex-forecast-eurusd-09-09-2016

The indicators show an ambiguous image. The MACD histogram started to decline but is above the signal line now. There are no signals at the moment.

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

Trading recommendations:

Support levels: 1.12650, 1.12350

Resistance levels: 1.12650

Currently, the EUR/USD currency pair is being traded near the “mirror” support level of 1.12650. In the case of holding this level, an upward movement to the level of 1.13150 is possible.

If the price fixes below the level of 1.12650, a downward movement to the level of 1.12100 is possible.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33393

Opening: 1.32951

Chg. % for the last day: -0.31

Day range: 1.32901-1.33358

52-week range: 1.2796-1.5659

Over the past few trading sessions, the pair of GBP/USD has corrected by more than 120 pips. During yesterday’s trading session, the British pound weakened against the US dollar by 0.31%.

forex-forecast-gpbusd-09-09-2016

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

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also indicates to sell GBP/USD.

Trading recommendations:

Support levels: 1.32450

Resistance levels: 1.32200, 1.34400

The currency pair of GBP/USD was fixed below the resistance level of 1.32200. We expect a continuation of the corrective movement to the level of 1.32450.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.28832

Opening: 1.29347

Chg. % for the last day: +0.39

Day range: 1.29103-1.29465

52-week range: 1.2458-1.4692

Over the last two trading sessions, the Canadian dollar weakened against the US dollar by more than 100 pips. The continuation of the corrective movement on the currency pair of USD/CAD is possible.

forex-forecast-usdcad-09-09-2016

The MACD histogram is in the positive zone and above its signal line, indicating to buy USD/CAD.

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

We recommend to pay attention to the news factor. Today at 15.30 (GMT +3: 00) the data on employment change in Canada will be released.

Trading recommendations:

Support levels: 1.29250, 1.28300

Resistance levels: 1.30100

At the moment the currency pair of USD/CAD is being traded near the “mirror” support level of 1.29250. If statistical data on Canada’s economy will be weak, the correction at the USD/CAD currency pair may continue to the mark of 1.30100.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 101.738

Opening: 102.455

Chg. % for the last day: -0.76

Day range: 101.965-102.487

52-week range: 99.08-123.69

Yesterday, the currency pair of USD/JPY was very volatile. The national currency of Japan corrected significantly (by more than 80 pips) against the US dollar.

forex-forecast-usdjpy-09-09-2016

The indicators show an ambiguous image. The MACD histogram is in the positive zone, but below the signal line. There are no signals yet.

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

Trading recommendations:

Support levels: 101.250

Resistance levels: 102.300, 103.200

In the case of breaking through the resistance of 102.300, the correction of USD/JPY may continue to the level of 103.200.

An alternative may be holding the resistance level of 102.300, and a continuation of the yen strengthening to the mark of 101.250.