Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 26 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.08812
Opening: 1.08883
Chg. % for the last day: +0.05
Day range: 1.08741 – 1.09150
52-week range: 1.0538 – 1.1616

Yesterday the EUR/USD currency pair kept the support level of 1.08600. At the beginning of the European trading session the single currency continued its correction, overcoming the resistance level of 1.09000.

forex-forecast-eurusd-26-10-2016

The MACD histogram has moved into the positive zone and fixed above the signal line, indicating the growth of EUR/USD.

The Stochastic Oscillator is near overbought level, the %K line crossed the %D line. There are no signals yet.

Today news background is rich with statistics on the US economy:
– Balance of foreign trade (15:30 GMT+3:00);
– An index of business activity in the services sector (16:45 GMT+3:00);
– New houses selling (17:00 GMT+ 3:00).

Trading recommendations:

Support levels: 1.08600, 1.09000
Resistance levels: 1.09650

At the moment the currency is testing the “mirror” support level of 1.09000. In the case of overcoming the level of 1.09150, we recommend to consider buying the EUR/USD currency pair up to the mark of 1.09500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.22376
Opening: 1.21864
Chg. % for the last day: -0.42
Day range: 1.21560 – 1.21989
52-week range: 1.2016 – 1.5513

Yesterday, the GBP/USD currency pair observed aggressive selling. However, the currency kept the support level of 1.21100. By the close of American trading session, the pound has won back most of the losses. At the moment the currency is being traded in the range of 1.21600-1.22000.

forex-forecast-gpbusd-26-10-2016

Indicators signal the development of the correction on the GBP/USD currency pair. The MACD histogram started to rise and fixed above the signal line.

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

We recommend to pay attention to the publication of economic data from the United States. Also, at 11:30 (GMT+3:00), the data on the number of mortgage approvals in the UK will be released.

Trading recommendations:

Support levels: 1.21100, 1.21600
Resistance levels: 1.22000

In the case of the publication of weak statistics on the US economy, the correction on GBP/USD may continue to the level of 1.22500.

An alternative can be the reduction of GBP/USD quotes to the local support level of 1.2140.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:
Pre-opening: 1.32832
Opening: 1.33487
Chg. % for the last day: +0.48
Day range: 1.33316 – 1.33600
52-week range: 1.2458 – 1.4692

Over the past few trading sessions on the USD/CAD currency pair the local support and resistance levels were formed: 1.33200 and 1.33600. At the moment the Canadian dollar is testing the upper border of the trading range.

forex-forecast-usdcad-26-10-2016

Indicators point to the development of corrective movement on the USD/CAD currency pair. The MACD histogram started to decline and fixed below the signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating selling of USD/CAD.

Today the news background on the Canadian economy is calm.

Trading recommendations:

Support levels: 1.32300, 1.33200
Resistance levels: 1.33600

If statistics from the US is weak, a downward trend on the USD/CAD currency pair may develop to the level of 1.32900.

An alternative would be a further growth of USD/CAD quotes up to the resistance level of 1.34000.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:
Pre-opening: 104.167
Opening: 104.221
Chg. % for the last day: +0.04
Day range: 104.018 – 104.385
52-week range: 99.08 – 123.69

Yesterday, the USD/JPY currency pair observed an increased trading activity. However, there was no unidirectional movement on the market. At the moment the currency fixed in the trading range of 104.000-104.300.

forex-forecast-usdjpy-26-10-2016

The MACD histogram is in the negative zone and below the signal line, which indicates the development of the bearish moods on the USD/JPY currency pair.

The Stochastic Oscillator fixed in the neutral zone, the %K line is below the %D line, indicating selling of USD/JPY.

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

Trading recommendations:

Support levels: 103.800, 104.000
Resistance levels: 104.300

We expect a decline of the USD/JPY currency pair. We recommended to consider selling by the level of 103.800 and to seek entry points on smaller timeframes.