Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 10 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.11489
Opening: 1.11794
Chg. % for the last day: +0.45
Day range: 1.11684-1.12035
52-week range: 1.0538-1.1616

On Friday, October 7, the euro was supported against the background of the publication of weak US labor market report. In September, in the non-agricultural sector of the country, 156 thousand jobs were created, what is by 10.8% less than market expectations. The unemployment rate has increased and amounted to 5.0%.

forex-forecast-eurusd-10-10-2016

Indicators point to a correction development on the EUR/USD currency pair. The MACD histogram has started to decline and fixed below the signal line.

The Stochastic Oscillator is near oversold level, the %K line is below the %D line, which sends a weak signal to sell EUR/USD.

The news background on the currency market is quite calm today. Publication of important statistics is not planned.

Trading recommendations:

Support levels: 1.11500
Resistance Levels: 1.11950

We believe that the single currency may continue to strengthen against the US dollar to the level of 1.12150.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.26160
Opening: 1.23971
Chg. % for the last day: -1.44
Day range: 1.23630-1.24429
52-week range: 1.2016-1.5513

During Friday’s trading session, the pound has fallen significantly and reached the minimum of 30 years. At the moment, the currency is being traded near the resistance level of 1.24000.

forex-forecast-gpbusd-10-10-2016

Indicators signals are ambiguous. The MACD histogram has fixed in the negative zone and continued to decline, indicating a continuation of the downward trend on the GBP/USD currency pair.

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

Important news for the British economy is not expected today.

Trading recommendations:

Support levels: 1.20500
Resistance levels: 1.24000, 1.26000

We believe that the pound is still under pressure. Recommend to consider selling to the local support level of 1.23000.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32138
Opening: 1.32404
Chg. % for the last day: +0.61
Day range: 1.32261-1.32784
52-week range: 1.2458-1.4692

On Friday, the USD/CAD currency pair observed an increased volatility and trading activity on the background of the publication of important macroeconomic data on the US and Canada economies. There was no uni-directional movement on the market. At the moment, the currency is being traded near the “mirror” support level of 1.32600.

forex-forecast-usdcad-10-10-2016

The MACD histogram is in the positive zone, but below the signal line, which delivers a weak signal to buy USD/CAD.

The Stochastic Oscillator has fixed near the overbought zone, the %K line crossed the %D line. There are no signals yet.

Today, Canada celebrates Thanksgiving Day. Pronounced trend movements on the USD/CAD currency pair are not expected today.

Trading recommendations:

Support levels: 1.31650, 1.32600
Resistance Levels: 1.33200

In the case of overcoming and fixing prices below the support level of 1.32600, a downward movement on the USD/CAD currency pair may develop to the support level of 1.32150.

An alternative could be the growth of quotations to the level of 1.33200.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.937
Opening: 103.248
Chg. % for the last day: -0.98
Day range: 102.805-103.319
52-week range: 99.08-123.69

During Friday’s trading session, demand for yen has increased significantly due to the publication of weak US labor market report. The currency of “safe haven” rose in price by more than 100 pips.

forex-forecast-usdjpy-10-10-2016

The MACD histogram is in the negative zone, but above the signal line, which sends a weak signal to buy USD/JPY.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating a possible correction on USD/JPY.

One should expect decreased trading activity on the USD/JPY currency pair due to the holiday in Japan (Health and Sports Day).

Trading recommendations:

Support levels: 102.650
Resistance Levels: 103.650

Friday’s forecast was confirmed. We expect a continuation of the correction on USD/JPY to around 102.650.