Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 12 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.11371
Opening: 1.10536
Chg. % for the last day: -0.75
Day range: 1.10312-1.10679
52-week range: 1.0538-1.1616

Since the beginning of this week, the EUR/USD currency pair shows a downward trend. The fall of the single currency quotations exceeded 140 pips. Currently, EUR/USD is testing the local support of 1.10400.

forex-forecast-eurusd-12-10-2016

Indicators send signals about the development of the correction on the EUR/USD currency pair. The MACD histogram has started to rise and fixed above the signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating the growth of EUR/USD.

At 21:00 (GMT + 3: 00) the reports of the FOMC meeting, which may significantly affect the dynamics of the exchange “majors”, will be published. Also, at 12:00 (GMT + 3: 00), the data on the volume of industrial production in the EU will be released.

Trading recommendations:

Support levels: 1.10400
Resistance levels: 1.11100

Before the publication of FOMC reports we recommend to look for entry points to open speculative positions from the key support and resistance levels. In the case of price overcoming and fixing above the local resistance of 1.10700, the EUR/USD currency pair may grow to the level of 1.11100.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.23623
Opening: 1.21250
Chg. % for the last day: -1.94
Day range: 1.21007-1.23261
52-week range: 1.2016-1.5513

During the Asian trading session, the pound has corrected by more than 200 pips, after the significant collapse in the past few trading sessions. At the moment the GBP/USD currency pair is being traded between the local support and resistance levels: 1.21250 and 1.23350.

forex-forecast-gpbusd-12-10-2016

Indicators signals are ambiguous. The MACD histogram indicates the strengthening of the British currency. The indicator has begun to rise and fixed above the signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating the further reduction of GBP/USD.

At 12:00 (GMT + 3: 00) Cunliffe, a member of the Monetary Policy, will make a speech.

Trading recommendations:

Support levels: 1.21250
Resistance levels: 1.23350, 1.26000

We expect a correction in the development of GBP/USD to the local resistance of 1.24000.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31746
Opening: 1.32633
Chg. % for the last day: +0.66
Day range: 1.32088-1.32636
52-week range: 1.2458-1.4692

The Canadian dollar continues to strengthen against the US dollar. Demand for the currency is supported against the background of data on the volume of new homes construction in Canada. At the moment the USD/CAD currency pair is beingtraded near the support level of 1.32150.

forex-forecast-usdcad-12-10-2016

Indicators show an ambiguous image. The MACD histogram has started to decline and fixed below the signal line, which is talking about the bearish moods on the USD/CAD currency pair.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a possible increase of USD/CAD.

We recommend to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 1.32150
Resistance levels: 1.32650

We continue to expect the development of the downward trend on the USD/CAD currency pair. Quotes may achieve the local support of 1.31750.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.642
Opening: 103.495
Chg. % for the last day: -0.09
Day range: 103.267-103.684
52-week range: 99.08-123.69

Since the end of last week, the USD/JPY currency pair has being traded in the range of 103.250-104.150. Yesterday, the currency managed to keep the lower boundary of the trading range. Currently, the yen is testing the local resistance of 103.650.

forex-forecast-usdjpy-12-10-2016

Indicators do not send strong signals. The MACD histogram is in the negative zone, but below the signal line.

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

Important statistical data on the Japanese economy is not released today. We recommend to pay attention to the publication of the FOMC reports.

Trading recommendations:

Support levels: 103.250
Resistance levels: 104.150

Yesterday’s forecast was confirmed. We expect a further decline of USD/JPY to around 102.750.