Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 21 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.09739
Opening: 1.09292
Chg. % for the last day: -0.40
Day range: 1.08910 – 1.09297
52-week range: 1.0538 – 1.1616

After yesterday’s comments of the ECB, the US dollar rose against the single currency. The regulator, as expected, left interest rates unchanged at record low levels. The central bank also kept the program of assets purchasing until March 2017 for the revival of inflation in the EU.

forex-forecast-eurusd-21-10-2016

Indicators do not send clear signals. The MACD histogram is in the negative zone and below the signal line, indicating that further reduction of EUR/USD.

The Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, indicating a possible correction on the EUR/USD currency pair.

News background:
– Speech of Bundesbank President Weidmann (12:00 GMT + 3: 00);
– Summit of EU leaders (19:00 GMT + 3: 00).

Trading recommendations:

Support levels: 1.09000
Resistance levels: 1.09650

We expect a continuation of bearish moods on the EUR/USD currency pair. Recommend to consider selling to the local support level of 1.08500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22850
Opening: 1.22531
Chg. % for the last day: -0.28
Day range: 1.22233 – 1.22586
52-week range: 1.2016 – 1.5513

Yesterday, the British currency was under pressure due to the weak statistics on retail sales in the country. At present, the pound is being traded near the local support level of 1.22250.

forex-forecast-gpbusd-21-10-2016

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

The Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates the development of an upward trend on the GBP/USD currency pair.

Important statistics on the British economy will be not released today.

Trading recommendations:

Support levels: 1.22250
Resistance levels: 1.23250

In the case of overcoming and fixing below the support level of 1.22250, the GBP/USD pair may continue to fall to the level of 1.21750. It is better to look for the point of entry into the market on smaller timeframes.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31140
Opening: 1.32286
Chg. % for the last day: +0.88
Day range: 1.32243 – 1.32527
52-week range: 1.2458 – 1.4692

Over the past few trading sessions, the US dollar has strengthened significantly against the Canadian currency. During yesterday’s trading session, the growth of the USD/CAD quotes exceeded 0.8%.

forex-forecast-usdcad-21-10-2016

The MACD histogram has started to decline and is below the signal line, that indicates the development of corrective movement on the USD/CAD currency pair.

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

The news background on the economy of Canada today is quite eventful:
– base consumer price index (15:30 GMT + 3: 00);
– base index of retail sales (15:30 GMT + 3: 00);
– consumer price index (15:30 GMT + 3: 00).

Trading recommendations:

Support levels: 1.32150
Resistance levels: 1.32900

In case of publication of positive data on inflation in Canada, the correction on the USD/CAD currency pair may develop to the level of 1.32000.

An alternative could be a further increase in USD/CAD by the resistance level of 1.32900.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.433
Opening: 103.945
Chg. % for the last day: +0.49
Day range: 103.747 – 104.21
52-week range: 99.08 – 123.69

Yesterday, the Japanese currency was under pressure against the background of the publication of upbeat macroeconomic data from the United States. However, at the beginning of the European trading session, the yen won back a little loss, having kept the resistance of 104.100.

forex-forecast-usdjpy-21-10-2016

The MACD histogram has started to decline and fixed below the signal line, indicating a further correction on the USD/JPY currency pair.

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

The news background on the USD/JPY currency pair is calm.

Trading recommendations:

Support levels: 103.750, 103.350
Resistance levels: 104.100

We believe that the USD/JPY currency pair may continue to decline. Quotes may reach 103.500.