Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 28 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.09079
Opening: 1.08956
Chg. % for the last day: -0.11
Day range: 1.08924 – 1.09191
52-week range: 1.0538 – 1.1616

Yesterday there was an increased trading activity on the currency market. However, the EUR/USD currency pair didn`t show unidirectional movement. Euro continues to test the support level of 1.09000.

forex-forecast-eurusd-28-10-2016

The MACD histogram has started to rise and moved in the positive zone, indicating a further correction on the EUR/USD currency pair.

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

Market participants are focused on the publication of data on the US GDP (15:30 GMT+3:00). Also there will be data on:
– the index of labor costs in the US (15:30 GMT+3:00);
– the index of consumer expectations from the University of Michigan (15:30 GMT+3:00).

Trading recommendations:

Support levels: 1.08600, 1.09000
Resistance levels: 1.09650

If statistics from the US will be weak, the continuation of the corrective movement on EUR/USD to the resistance level of 1.09650 is possible.

An alternative would be a decline of EUR/USD quotes to the level of 1.08600.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22465
Opening: 1.21622
Chg. % for the last day: -0.69
Day range: 1.21520 – 1.21880
52-week range: 1.2016 – 1.5513

Yesterday, the pound was supported against the background of positive data on the UK GDP. However, the currency failed to overcome and consolidate above the local resistance of 1.22600, and as a result, a correction occurred on the market. Trading session closed with the decline of GBP/USD at 0.69%.

forex-forecast-gpbusd-28-10-2016

The MACD histogram fixed in the negative zone, but above the signal line, that sends a weak signal to sell GBP/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating the growth of GBP/USD quotes.

We recommend to pay attention to the statistics from the US.

Trading recommendations:

Support levels: 1.21600
Resistance levels: 1.22000

In the case of publication of positive data on the US GDP, the decline of currency pair to the level of 1.21250 is possible.

An alternative would be a further correction on GBP/USD to the local resistance level of 1.2240.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33793
Opening: 1.33853
Chg. % for the last day: +0.04
Day range: 1.33742 – 1.33987
52-week range: 1.2458 – 1.4692

The Canadian dollar continues to remain under pressure due to the increased demand for the US dollar. Over the past two weeks the growth of USD/CAD currency pair has exceeded 300 pips.

forex-forecast-usdcad-28-10-2016

The MACD histogram is in the positive zone, but below the signal line, that sends a weak signal to buy USD/CAD.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating the purchases on USD/CAD.

Further alignment of forces on the USD/CAD currency pair will depend on today’s US GDP data.

Trading recommendations:

Support levels: 1.32800, 1.33250
Resistance levels: 1.33900

At the moment, the currency is being traded near the resistance level of 1.33900. If statistics from the US will be positive, the growth of USD/CAD quotes may continue to the level of 1.34500.

An alternative would be a correction to the support level of 1.33250.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 104.470
Opening: 105.268
Chg. % for the last day: +0.78
Day range: 105.058 – 105.415
52-week range: 99.08 – 123.69

Yesterday, the USD/JPY currency pair observed aggressive purchases. The currency of “safe haven” fell in price significantly against the US dollar (more than 85 pips).

forex-forecast-usdjpy-28-10-2016

The MACD histogram has started to decline and fixed below the signal line, that indicates the development of the bearish moods on USD/JPY.

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

Important news for the Japanese economy is not expected today.

Trading recommendations:

Support levels: 104.850
Resistance levels: 105.350

If statistics from the US will be weak, the downward trend on the USD/JPY currency pair to the level of 104.850 may develop. We recommend to seek confirmation and entry point on smaller timeframes.