Forecast for the EURUSD currency pair
Chg. % for the last day: -0.17
Day range: 1.09732-1.09995
52-week range: 1.0538-1.1616
Yesterday, the US dollar strengthened slightly despite weak data on inflation in the country. The EUR/USD currency pair kept the local resistance of 1.10250 and fell by more than 50 pips.
The MACD histogram is in the negative zone, but above the signal line, which sends a weak signal to buy EUR/USD.
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 news feed on the US economy:
– The number of issued building permits (15:30 GMT + 3: 00);
– the volume of new homes construction;
– speech of the FOMC member Williams (15:45 GMT + 3: 00);
– ‘Beige Book’ of FRS (21:00 GMT + 3: 00).
Support levels: 1.09650
Resistance levels: 1.10000, 1.10500
In the case of the publication of positive housing data in the US, we recommend to consider selling to around 1.09100.
An alternative would be a correction of EUR/USD to the local resistance level of 1.10250
Forecast for the GBPUSD currency pair
Chg. % for the last day: +0.93
Day range: 1.22554 – 1.23139
52-week range: 1.2016 – 1.5513
During yesterday’s trading session, the British currency was supported against the data on inflation in the country. In September, the consumer price index increased and amounted to 1.0% against the forecasted level of 0.9%. The GBP/USD currency pair rose in price by more than 125 pips.
The MACD histogram does not send strong signals for purchasing. Indicator is in the positive zone, but below the signal line.
The Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, which indicates a further increase of GBP/USD.
Today the publication of important statistics on the labor market of the United Kingdom is expected:
– the average level of wages, taking into account premiums (11:30 GMT + 3: 00);
– change in the number of applications for unemployment benefits (11:30 GMT + 3: 00);
– unemployment (11:30 GMT + 3: 00).
Support levels: 1.21250
Resistance levels: 1.23350, 1.26000
We believe that the upward trend on the GBP/USD currency pair may continue to the level of 1.23500.
Forecast for the USDCAD currency pair
Chg. % for the last day: -0.12
Day range: 1.30826-1.31288
52-week range: 1.2458-1.4692
Yesterday, the USD/CAD currency pair observed an increased trading activity. However, a unidirectional movement on the market was not observed. Currently, the Canadian dollar is being traded near the resistance level of 1.31200.
The indicators show an ambiguous picture. The MACD histogram has started to rise, and is above its signal line, indicating a growth of USD/CAD.
The Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating selling on the USD/CAD currency pair.
All news on the Canadian economy:
– the publication of the Bank of Canada report on monetary policy (17: 00GMT + 3: 00);
– decision on interest rates from Bank of Canada (17: 00GMT + 3: 00);
– speech of the Bank of Canada’s head – Poloz (17: 00GMT + 3: 00).
Support levels: 1.30750
Resistance levels: 1.31200, 1.32750
Before a decision on the interest rate the Bank of Canada release, be sure to look for entry points to open speculative positions from key levels on the smaller timeframes.
Forecast for the USDJPY currency pair
Chg. % for the last day: -0.03
Day range: 103.408-103.948
52-week range: 99.08-123.69
During the Asian trading session, the yen continued to strengthen against the US dollar. The USD/JPY quotes dropped over 40 pips.
Indicators point to the development of the bearish moods on the USD/JPY currency pair. The MACD histogram is in the negative zone and is below the signal line.
The Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, indicating selling of USD/JPY.
Important news for the Japanese economy will be not released today. We recommend to pay attention to statistical data from the US.
Support levels: 103,400
Resistance levels: 104.00, 104.500
We expect a continuation of the downward trend on the USD/JPY currency pair to the local support level of 103.100.