Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 18 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.09694
Opening: 1.09999
Chg. % for the last day: +0.30
Day range: 1.09946-1.10265
52-week range: 1.0538-1.1616

Yesterday there was an increased demand for the single currency. The EUR/USD currency pair overcame and fixed above the resistance level of 1.10000. At the moment, currency market participants continue to estimate the probability of the FRS interest rate raising this year.

forex-forecast-eurusd-18-10-2016

The MACD histogram has moved in the positive zone and is above its signal line, indicating a further correction on the EUR/USD currency pair.

The Stochastic Oscillator has fixed in the neutral zone, the %K line is beginning to cross the %D line. There are no signals yet.

Today the release of important statistical data on the US economy is expected. At 15:30 (GMT + 3: 00), the data on basic consumer price index will be published.

Trading recommendations:

Support levels: 1.09650, 1.10000
Resistance levels: 1.10500

We expect the development of bullish moods on the EUR/USD currency pair. Recommend to consider buying by the resistance level of 1.10500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.21562
Opening: 1.21793
Chg. % for the last day: +0.05
Day range: 1.21737-1.22746
52-week range: 1.2016-1.5513

During the Asian trading session, the pound strengthened significantly against the US dollar (by more than 90 pips). Currently, the GBP/USD currency pair is being traded near the local resistance level of 1.22500.

forex-forecast-gpbusd-18-10-2016

Indicators signal a further increase of the British currency. The MACD histogram is in the positive zone and above its signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, pointing to the upward trend on the GBP/USD currency pair.

We recommend to pay attention to inflation data in Britain. At 11:30 (GMT + 3: 00) the consumer index will be released.

Trading recommendations:

Support levels: 1.21250
Resistance levels: 1.23350, 1.26000

Yesterday’s forecast was fully confirmed. In the case of publication of positive statistics from the UK, correction on the GBP/USD currency pair may continue to the level of 1.23350.

An alternative could be the strengthening of the US dollar to the support level of 1.21250.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31147
Opening: 1.31285
Chg. % for the last day: -0.13
Day range: 1.30687-1.31358
52-week range: 1.2458-1.4692

During yesterday’s trading session, the USD/CAD currency pair managed to keep the local resistance of 1.31750. The Canadian dollar rose price by more than 100 pips. At the moment, the currency is being traded near the support level of 1.30750.

forex-forecast-usdcad-18-10-2016

The MACD histogram indicates a continuation of bearish moods on the USD/CAD currency pair. Indicator has fixed in the negative zone and is below the signal line.

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

We recommend to pay attention to the statistics on the US economy. Also, at 15:30 (GMT + 3: 00) the data on sales in the manufacturing sector of Canada will be released.

Trading recommendations:

Support levels: 1.30750
Resistance levels: 1.31200, 1.32750

Yesterday’s forecast was confirmed. If the inflation data in the US have a negative character, the downward trend on the USD/CAD currency pair may continue to around 1.30100.

An alternative would be an increase of the USD/CAD quotes to a local resistance of 1.31100.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 104.345
Opening: 103.877
Chg. % for the last day: -0.15
Day range: 103.681-104.129
52-week range: 99.08-123.69

Yesterday the currency of “safe haven” strengthened a bit (by over 50 pips) against the US dollar. At the moment, the USD/JPY currency pair is testing the “mirror” resistance level of 104.000.

forex-forecast-usdjpy-18-10-2016

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

The Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating the decline of the USD/JPY currency pair.

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

Trading recommendations:

Support levels: 103.400
Resistance levels: 104.00, 104.500

In the case of the publication of weak statistics from the US, the USD/JPY quotes may continue to decline to around 103.500.

An alternative would be an increase of USD/JPY to a local resistance level of 104.400.