Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 01 February, 2017

Technical showings of the currency pair:

Pre-opening: 1.06961
Opening: 1.07971
Chg. % for the last day: +0.96
Day range: 1.07741 – 1.08050
52-week range: 1.0366 – 1.1616

During yesterday’s trading, the US dollar weakened against the “majors”. This is due to the release of weak economic data and D. Trump’s criticism of too “strong” dollar. The growth of the EUR/USD quotations exceeded 100 points. Today will be a meeting of the US Federal Reserve System.

forex-forecast-eurusd-01-02-2017

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating the growth of the EUR/USD currency pair.

Economic Calendar on 01.02.2017:
– the index of business activity in the manufacturing sector in Germany (10:55 GMT + 2: 00);
– the index of business activity in the manufacturing sector of the euro area (11:00 GMT + 2: 00);
– changes in the number of employed in US non-farm sector from ADP (15:15 GMT + 2: 00);
– the index of business activity in the US manufacturing sector from ISM (17:00 GMT + 2: 00);
– Fed decision on interest rates(21:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.07550, 1.07150
Resistance levels: 1.08100

Today, we recommend to reduce the risks from open positions. It is necessary to await the decision of the US central bank. If the price consolidates above the level of 1.08100, a further increase of the EUR/USD quotes is possible. The potential movement is to 1.08750.

An alternative could be a correction of the EUR/USD currency pair up to the support level of 1.07550.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.24863
Opening: 1.25799
Chg. % for the last day: +0.74
Day range: 1.25432 – 1.25921
52-week range: 1.1986 – 1.5020

Yesterday, there was a high trading activity on the GBP/USD currency pair. The pound held key support level of 1.24150, prompting aggressive buying. Trading ended with the growth of the GBP/USD quotations by 0.74%. At the moment, the currency is testing the “mirror” support level of 1.25450.

forex-forecast-gpbusd-01-02-2017

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

Stochastic Oscillator has consolidated in the neutral zone, the %K line is above the %D line, which indicates a further increase of the GBP/USD currency pair.

At 11:30 (GMT + 2: 00) the index of business activity in the manufacturing sector of the United Kingdom will be released.

Trading recommendations:

Support levels: 1.25450, 1.24150
Resistance levels: 1.26600

We believe that the increase of GBP/USD may continue. One should consider buying to around 1.26250.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31185
Opening: 1.30339
Chg. % for the last day: -0.66
Day range: 1.30257 – 1.30935
52-week range: 1.2458 – 1.4692

Yesterday the USD/CAD currency pair was under influence of sellers. The Canadian dollar rose against the US dollar by more than 80 points. At the moment, the currency is being traded near the support level of 1.30550.

forex-forecast-usdcad-01-02-2017

The indicators show an ambiguous image. The MACD histogram has started to rise and fixed above the signal line, which indicates the development of an upward trend in USD/CAD.

Stochastic Oscillator has consolidated in the neutral zone, the %K line is below the %D line, it gives a signal to sell USD/CAD.

Important news from Canada is not expected today.

Trading recommendations:

Support levels: 1.30550, 1.29850
Resistance levels: 1.31250

The previous forecast was confirmed. If statistics from the US is weak, the downward trend on the USD/CAD currency pair may continue. The potential movement is up to 1.29850.

An alternative would be an increase of the USD/CAD quotes to the resistance level of 1.31250.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 113.741
Opening: 112.784
Chg. % for the last day: -0.86
Day range: 112.618 – 113.630
52-week range: 99.08 – 123.69

Yesterday, sales dominated on the currency pair. The yen rose in price by more than 90 points. The USD/JPY currency pair found support at the level of 112.300. During the Asian trading session, there was a correction. At the moment, the currency is testing the resistance level of 113.450.

forex-forecast-usdjpy-01-02-2017

Signals indicators are different. The MACD histogram has started to rise and fixed above the signal line, indicating a growth of USD/JPY.

Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating sales on the USD/JPY currency pair.

We recommend to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 112.300
Resistance levels: 113.450, 114.250

Our assumptions were confirmed yesterday. If statistics from the US is optimistic, the correction on USD/JPY may continue to around 114.000

An alternative could be a drop of the USD/JPY quotes to a local support of 112.750.