Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 13 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.10536
Opening: 1.10073
Chg. % for the last day: -0.42
Day range: 1.09999-1.10376
52-week range: 1.0538-1.1616

Yesterday’s FOMC meeting report revealed that some members of the committee consider it possible to increase the FRS rates soon. However, the regulator is concerned about the pace of inflation in the country. At the moment the EUR/USD currency pair is testing the strong support of 1.10000.

forex-forecast-eurusd-13-10-2016

Indicators signals are ambiguous. The MACD histogram has started to rise and fixed above the signal line, which indicates the development of the correction on the EUR/USD currency pair.

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

News feed:
– The number of initial claims for unemployment benefits in the US (15:30 GMT + 3: 00);
– a speech of a member of the FOMC Harker.

Trading recommendations:

Support levels: 1.10000
Resistance levels: 1.10400

In the case of overcoming and retesting the resistance level of 1.10400, the EUR/USD pair could reach the level of 1.10900.

An alternative could be a continuation of the downward trend on EUR/USD up to the support level of 1.09500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.21250
Opening: 1.21805
Chg. % for the last day: +0.70
Day range: 1.21314-1.22145
52-week range: 1.2016-1.5513

During yesterday’s trading session, there was no unidirectional movement of the GBP/USD currency pair. The last few trading sessions, the currency has being traded in a range of 1.21250-1.23350. At present, the pound is being traded near the lower boundary of the trading range (1.21250).

forex-forecast-gpbusd-13-10-2016

The MACD histogram has fixed in the negative zone, but below the signal line, which sends a weak signal to sell GBP/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a further drop of GBP/USD.

Important economic data from the UK will be not released today.

Trading recommendations:

Support levels: 1.21250
Resistance levels: 1.23350, 1.26000

We continue to expect a correction on GBP/USD. Quotes may achieve the local resistance level of 1.22500.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32633
Opening: 1.32747
Chg. % for the last day: +0.11
Day range: 1.32611-1.33066
52-week range: 1.2458-1.4692

During the Asian trading session, the US dollar strengthened slightly. The USD/CAD currency pair has reached and is being traded near the resistance level of 1.33000.

forex-forecast-usdcad-13-10-2016

The MACD histogram is in the positive zone, but below the signal line, which indicates the development of corrective movement on the USD/CAD currency pair.

The Stochastic Oscillator doesn’t send signals. The indicator has fixed in the neutral zone, the %K line crossed the %D line.

At 15:30 (GMT + 3: 00) data on the prices index for new houses in Canada will be released.

Trading recommendations:

Support levels: 1.32150
Resistance levels: 1.33000

In case of holding the resistance level of 1.33000 and appearing of additional evidence on smaller timeframes, the USD/CAD currency pair can achieve the level of 1.32400.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.495
Opening: 104.211
Chg. % for the last day: +0.66
Day range: 103.543-104.631
52-week range: 99.08-123.69

During the Asian trading session, the yen strengthened significantly (by more than 60 pips) against the US dollar. Demand for the currency of “safe haven” is supported against the background of weak statistics on the Chinese economy.

forex-forecast-usdjpy-13-10-2016

The MACD histogram indicates the development of the bearish moods on the USD/JPY currency pair. The indicator has moved into the negative zone and fixed below the signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/JPY.

The news background for the Japanese economy is calm today.

Trading recommendations:

Support levels: 103.250
Resistance levels: 104.150

We believe that the USD/JPY currency pair quotations may reach the support level of 103.25.