Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 31 October, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.08956
Opening: 1.09912
Chg. % for the last day: +0.83
Day range: 1.09540 – 1.09918
52-week range: 1.0538 – 1.1616

During Friday’s trading session, 28 October, the US dollar has lost in price more than 90 pips, despite the greatest growth of the economy over the past 2 years. The dollar depreciated significantly against the euro due to the political uncertainty in the run-up to the presidential elections on 8 November. In the near future, FRS plans to reopen the case of Hillary Clinton’s personal correspondence.

forex-forecast-eurusd-31-10-2016

The MACD histogram is in the positive zone, but below the signal line, which delivers a weak signal to buy EUR/USD.

The Stochastic Oscillator is near oversold zone, the %K line is beginning to cross the %D line. There are no signals yet.

Today important statistics on the EU economy will be released:
– The consumer price index (12:00 GMT + 2: 00);
– Eurozone GDP (12:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.09300
Resistance levels: 1.09650, 1.0000

If the statistical data from the EU is positive, it is possible to continue correction on the EUR/USD currency pair to the 1.0000 resistance level.

An alternative would be the quotations reduction to 1.09300.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.21622
Opening: 1.21849
Chg. % for the last day: +0.18
Day range: 1.21703 – 1.22152
52-week range: 1.2016 – 1.5513

On Friday, the GBP/USD currency pair observed increased volatility and trading activity on the background of the publication of important statistics on the US economy. There was no unidirectional movement on the market. At the moment, the currency is being traded in a range of 1.21600-1.22000.

forex-forecast-gpbusd-31-10-2016

Indicators do not send strong signals. The MACD histogram has started to decline and is below the signal line, indicating sales of GBP/USD.

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

Important news for the British economy will be not released today.

Trading recommendations:

Support levels: 1.21600, 1.21100
Resistance levels: 1.22000

We expect the development of an upward trend on the GBP/USD currency pair. Recommend to consider buying to around 1.22250.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33853
Opening: 1.34248
Chg. % for the last day: +0.08
Day range: 1.33734 – 1.34264
52-week range: 1.2458 – 1.4692

On Friday, a significant change in the Canadian dollar did not happen. The USD/CAD currency pair was in a sideway trend in a range of 70 pips. At the moment, the currency is being traded near the resistance level of 1.33900.

forex-forecast-usdcad-31-10-2016

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

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

At 14:30 (GMT + 3: 00) the data on the index of raw material prices (RMPI) in Canada will be released.

Trading recommendations:
Support levels: 1.32800, 1.33250
Resistance levels: 1.33900

We expect the development of corrective movement on the USD/CAD currency pair. Quotes may achieve local support level of 1.33500.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 105.268
Opening: 104.427
Chg. % for the last day: -0.56
Day range: 104.387 – 104.991
52-week range: 99.08 – 123.69

During Friday’s trading session, the yen corrected significantly (more than 75 pips) against the background of increasing political uncertainty in the United States. At the moment, the currency is being traded near the “mirror” support level of 104.850.

forex-forecast-usdjpy-31-10-2016

The MACD histogram is in the negative zone, but above the signal line, which indicates the development of an upward trend on the USD/JPY currency pair.

The Stochastic Oscillator is near overbought, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

We recommend to pay attention to the news feed on the US economy:
– The basic price index of expenditures for personal consumption (14:30 GMT + 3: 00);
– An index of business activity in Chicago (15:45 GMT + 3: 00).

Trading recommendations:

Support levels: 104,850
Resistance levels: 105.350

We expect the development of the bearish moods on the USD/JPY currency pair. In the case of keeping supply zone of 104.950-105.100 and emergening of additional evidence on smaller timeframes, the USD/JPY currency pair could reach 104.500.