Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 25 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.08821
Opening: 1.08812
Chg. % for the last day: +0.03
Day range: 1.08680 – 1.08858
52-week range: 1.0538 – 1.1616

The single currency remains under pressure due to positive data on manufacturing activity in the US and the statements of representatives of the Federal Reserve. The President of the Federal Reserve Bank of Chicago Evans said that the Fed may increase the key interest rate before the end of 2017.

forex-forecast-eurusd-25-10-2016

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 is in the neutral zone, the %K line is below the %D line, indicating the decline of the EUR/USD currency pair.

News feed:
– IFO business climate index in Germany (11:00 GMT+3:00);
– CB consumer confidence index in the US (17:00 GMT+3:00);
– ECB President Draghi`s speech (18:30 GMT+3:00);
– FOMC Member Lockhart`s speech (20:20 GMT+3:00).

Trading recommendations:

Support levels: 1.08600
Resistance levels: 1.09000, 1.09650

We expect the correction on the EUR/USD currency pair. The price could reach the level of 1.0920.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.22199
Opening: 1.22376
Chg. % for the last day: +0.17
Day range: 1.22091 – 1.22392
52-week range: 1.2016 – 1.5513

Asian trading session on the GBP/USD currency pair was calm. The rate hasn`t changed significantly. There was a flat in a range of 20 points on the market. At present, the pound is trading near the support level of 1.22250.

forex-forecast-gpbusd-25-10-2016

Indicators do not send strong signals. The MACD histogram fixed near the level of 0.

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

Recommend to pay attention to the Governor of the Bank of England Carney`s speech at 17:35 (GMT+3:00).

Trading recommendations:

Support levels: 1.22250
Resistance levels: 1.22850, 1.23250

We expect the development of bullish moods on the GBP/USD currency pair. Pound may continue to strengthen against the US dollar and reach local resistance of 1.22600.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33264
Opening: 1.32832
Chg. % for the last day: -0.49
Day range: 1.32768 – 1.33632
52-week range: 1.2458 – 1.4692

Yesterday, there was an increased trading activity for the USD/CAD currency pair. The Canadian dollar has corrected by more than 0.45% after a significant weakening last week. However, during today’s Asian trading session the US dollar has won back most of the losses.

forex-forecast-usdcad-25-10-2016

Indicators signals are ambiguous. The MACD histogram continues to decline and is below the signal line, indicating the development of the correction on the USD/CAD currency pair.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, that indicates a possible increase of USD/CAD.

Important news for Canada’s economy is not expected today.

Trading recommendations:

Support levels: 1.32300, 1.33200
Resistance levels: 1.33600

Yesterday’s forecast was confirmed. In case of breakdown and testing of the support level of 1.33200 we recommend to consider selling for the USD/CAD currency pair to the level of 1.32750.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.819
Opening: 104.167
Chg. % for the last day: +0.26
Day range: 104.143 – 104.492
52-week range: 99.08 – 123.69

Yesterday, the yen continued to fall in price. The USD/JPY currency pair has risen in price by more than 50 points. Today, the US dollar rally continued. At the moment, the currency is testing the resistance level of 104.500.

forex-forecast-usdjpy-25-10-2016

The MACD histogram fixed in the positive zone, but is below the signal line, indicating a possible 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 signals yet.

Recommend to pay attention to statistics from the US.

Trading recommendations:

Support levels: 104.000, 104.300
Resistance levels: 104.500

If statistics on the US economy is positive, the increase of the USD/JPY currency pair may continue to the level of 105.000.

An alternative may be a correction to the support level of 104.000.