Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 17 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.10554
Opening: 1.09694
Chg. % for the last day: -0.78
Day range: 1.09635-1.09949
52-week range: 1.0538-1.1616

Last week, the EUR/USD currency pair observed bearish moods. During Friday’s trading session, the US dollar rally continued against the background of the publication of US optimistic economic data. During this period, the quotations of EUR/USD fell by more than 200 pips.

forex-forecast-eurusd-17-10-2016

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

The Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating a continuation of the downward trend on the EUR/USD currency pair.

We recommend to pay attention to the news background:
– The consumer price index in the EU (12:00 GMT + 3: 00);
– The volume of US industrial production (15:30 GMT + 3: 00);
– Speech of the FOMC Member Fisher (19:15 GMT + 3: 00);
– ECB President Draghi’s speech (20:35 GMT + 3: 00).

Trading recommendations:

Support levels: 1.09650
Resistance Levels: 1.10000

In the case of overcoming and fixing above the resistance level of 1.10000, the correction may develop to the level of 1.10500.

An alternative could be a further decline of EUR/USD to the local support of 1.09100.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22523
Opening: 1.21562
Chg. % for the last day: -0.55
Day range: 1.21445-1.21983
52-week range: 1.2016-1.5513

During Friday’s trading session, the unidirectional movement of GBP/USD was not observed. The pound was traded with a range of 80 pips and tested the local support and resistance levels: 1.21800-1.22600.

forex-forecast-gpbusd-17-10-2016

Indicators do not send strong signals. The MACD histogram is in the negative zone but above the signal line, which indicates the possible sale of GBP/USD.

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

At 16:45 (GMT + 3: 00)a speech of a member of the Monetary Policy Broadbent will be held.

Trading recommendations:

Support levels: 1.21250
Resistance levels: 1.23350, 1.26000

The currency pair expects additional drivers. We expect the development of corrective movement on GBP/USD. We recommend to consider buying by a local resistance level of 1.22750.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31925
Opening: 1.31147
Chg. % for the last day: -0.38
Day range: 1.31126-1.31828
52-week range: 1.2458-1.4692

The last two trading sessions there has been an increased demand for the currency of Canada, despite the positive statistics from the US. However, during the Asian trading session, the US dollar won back losses and reached the local resistance of 1.31850.

forex-forecast-usdcad-17-10-2016

Indicators point to a continuation of the correction on the USD/CAD currency pair. The MACD histogram has started to rise and now is above the signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which means purchases on the USD/CAD currency pair.

At 15:30 (GMT + 3: 00) data on the volume of foreign investment in Canadian securities will be released.

Trading recommendations:

Support levels: 1.31500
Resistance levels: 1.32150

Friday’s forecast was confirmed. In the case of holding the local resistance of 1.318500 and emerging additional confirmations on the lower timeframes, the Canadian dollar may continue to strengthen to the level of 1.312500.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.693
Opening: 104.345
Chg. % for the last day: +0.48
Day range: 103.923-104.369
52-week range: 99.08-123.69

At the moment the USD/JPY currency pair is being traded in a flat with a range of 50 pips. The yen has formed the key support and resistance levels: 104.000-104.500.

forex-forecast-usdjpy-17-10-2016

The MACD histogram has started to decline and fixed below the signal line, which indicates the development of the downward trend on the USD/JPY currency pair.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also indicates bearish moods on USD/JPY.

In September, industrial output growth in Japan remained unchanged and amounted to 1.3%. Market expectations were at 1.5%.

Trading recommendations:

Support levels: 104.00
Resistance levels: 104.500

We believe that on the USD/JPY currency pair a downward trend towards local support of 103.500 may develop.