Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 20 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.09782
Opening: 1.09739
Chg. % for the last day: -0.05
Day range: 1.09520 – 1.09804
52-week range: 1.0538 – 1.1616

Yesterday, a significant change in the EUR/USD rate was not observed. The trades were rather calm. The currency tested local support and resistance levels: 1.09650 and 1.10000.

forex-forecast-eurusd-20-10-2016

The MACD histogram has started to rise, and is above its signal line, indicating a possible increase of the EUR/USD currency pair.

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

Today the ECB meeting will be held, at which the decision regarding the future monetary policy of the Central Bank will be made:
– deposit rate (14:45 GMT + 3: 00);
– interest rate decision (14:45 GMT + 3: 00);

We also recommend to pay attention to the news feed on the US economy:
– the number of initial claims for unemployment benefits (15:30 GMT + 3: 00);
– an index of manufacturing activity from the Federal Reserve Bank of Philadelphia (15:30 GMT + 3: 00);
– sales on the secondary market (17:00 GMT + 3: 00).

Trading recommendations:

Support levels: 1.09650
Resistance levels: 1.10000, 1.10500

Further alignment of forces on the EUR/USD currency pair will largely depend on the decisions and comments of the ECB regarding monetary policy control. We recommend to wait for the press conference of the Central Bank and look for entry points from the key support and resistance levels.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22944
Opening: 1.22850
Chg. % for the last day: -0.09
Day range: 1.22619 – 1.22992
52-week range: 1.2016 – 1.5513

During yesterday’s trading session, the GBP/USD currency pair was traded with a range of 70 pips. A unidirectional movement on the market was not observed. Currently, the pound has found support at the local level of 1.22500.

forex-forecast-gpbusd-20-10-2016

Indicators do not send strong signals. The MACD histogram has begun to decline and now is below the signal line, which indicates the development of a downward trend.

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

The news background for the UK economy:
– base index of retail sales (11:30 GMT + 3: 00);
– retail sales volume (11:30 GMT + 3: 00).

Trading recommendations:

Support levels: 1.21250
Resistance levels: 1.23350, 1.26000

In the case of the publication of positive statistics from the UK, the pound may continue to rise to the level of 1.23500.

An alternative would be the GBP/USD quotes reduction to the local support level of 1.2210.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31058
Opening: 1.31140
Chg. % for the last day: +0.04
Day range: 1.31099 – 1.31729
52-week range: 1.2458 – 1.4692

The Bank of Canada has once again left its key interest rate unchanged at the level 0.50%. The regulator also said about an optimistic attitude regarding the growth of the national economy. Following the publication of data demand for the Canadian dollar has grown significantly. However, the US dollar managed to win back losses by the closure of the US trading session. At the moment the USD/CAD currency pair is testing the resistance level of 1.31750.

forex-forecast-usdcad-20-10-2016

Indicators signals are ambiguous. The MACD histogram is in the positive zone and above its signal line, indicating the purchase of USD/CAD.

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

Important news for Canada’s economy today will be not released today. We recommend to pay attention to the news feed from the US.

Trading recommendations:

Support levels: 1.31200, 1.30750
Resistance levels: 1.31750

If statistics from the US is positive, the further increase of the US dollar against the Canadian dollar is possible up to the level of 1.32200.

An alternative would be the development of bearish moods to the support level of 1.31200.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.838
Opening: 103.433
Chg. % for the last day: -0.40
Day range: 103.340 – 103.804
52-week range: 99.08 – 123.69

During the Asian trading session, there was correctional movement on the USD/JPY currency pair after a significant decline over the past few trading sessions. At the moment, the currency is being traded near the local resistance of 103.750.

forex-forecast-usdjpy-20-10-2016
The MACD histogram has started to rise and fixed above the signal line, indicating further growth of USD/JPY.

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

The publication of important statistics on Japan’s economy is not planned today.

Trading recommendations:

Support levels: 103.350
Resistance levels: 103.750, 104.350

Yesterday’s recommendations on the USD/JPY pair worked well themselves. In case of keeping the resistance level of 103.750 and appearing of additional evidence on smaller timeframes, the USD/JPY pair may reach the support level of 103.350.