The forecast for EUR/USD
Prev. Opening: 1.05873
Chg. % Last day: -0.10
Day range: 1.05253 – 1.05890
52-week range: 1.0366 – 1.1616
Yesterday there were a lot of important economic reports from the US. Most of the statistical data exceeded market expectations. The US dollar was also supported by comments from representatives of the Federal Reserve System. At the moment sales prevail on the EUR/USD currency pair. The euro is testing the support level of 1.05300.
The MACD histogram has consolidated in the negative zone and below its signal line, indicating a further decline of the EUR/USD quotes.
Stochastic Oscillator is in the oversold zone, the %K line crossed the %D line. Currently, there are no signals.
– the index of business activity in the manufacturing sector in Germany (10:55 GMT+2:00);
– changes in the number of unemployed in Germany (11:00 GMT+2:00);
– the level of unemployment in Germany (11:00 GMT+2:00);
– the index of business activity in the manufacturing sector of the euro area (11:00 GMT+2:00);
– German consumer price index (15:00 GMT+2:00);
– Data on US individuals spendings (15:30 GMT+2:00);
– the index of business activity in the manufacturing sector in the US from ISM (17:00 GMT+2:00);
– the FOMC member Kaplan’s speech (20:00 GMT+2:00);
Support levels: 1.05300, 1.05000
Resistance levels: 1.05850
The previous forecast was confirmed. We believe that the downward trend in the EUR/USD currency pair may continue. One should consider selling to the mark of 1.05000-1.04750.
The forecast for GBP/USD
Prev. Opening: 1.24415
Chg. % Last day: -0.51
Day range: 1.23496 – 1.24048
52-week range: 1.1986 – 1.5020
Yesterday, the pound continued to lose ground against the US currency. The GBP/USD quotes fell by more than 60 points. The currency found support at 1.23600. We expect statistics from the US.
Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, indicating the correction in the GBP/USD currency pair.
At 11:30 (GMT+2:00) the index of business activity in the manufacturing sector in Britain will be released.
Support levels: 1.23600
Resistance levels: 1.24000, 1.24350
If statistics on the UK economy is positive, the GBP/USD quotes may grow to around 1.24000-1.24250.
An alternative could be a further decline of GBP/USD. The potential movement – 1.23000.
The forecast for USD/CAD
Prev. Opening: 1.31796
Chg. % Last day: +0.90
Day range: 1.32835 – 1.33385
52-week range: 1.2458 – 1.4692
Since the beginning of this week, the Canadian dollar significantly weakened against the US dollar. During this period, the USD/CAD currency pair quotes increased by more than 240 points. The nearest resistance is the mark of 1.33500. We expect the Bank of Canada decision.
The MACD histogram has fixed in the positive zone, but below the signal line, which delivers a weak signal to buy USD/CAD.
Stochastic Oscillator is near the overbought zone, the %K line crossed the %D line. There are no signals yet.
Today important statistics on the Canadian economy will be released:
– current account balance (15:30 GMT+2:00);
– Interest rate decision (17:00 GMT+2:00).
Support levels: 1.32850, 1.32000
Resistance levels: 1.33500
Our previous expectations were confirmed. We recommend waiting for the decision of the Central Bank of Canada. If the price consolidates above the resistance level of 1.33500, the USD/CAD may further grow. The potential for movement – 1.34000-1.34250.
An alternative may be a correction to the level of 1.32500.
The forecast for USD/JPY
Prev. Opening: 112.689
Chg. % Last day: +0.07
Day Range: 112.732 – 113.663
52-week range: 99.08 – 123.69
Yesterday the USD/JPY currency pair the round level of 112.000, prompting aggressive buying in the afternoon. Today, the yen has continued to lose ground against the US dollar. The currency formed the resistance level of 113.600.
The MACD histogram is in the positive zone and above its signal line, indicating the “bullish” moods on USD/JPY.
Stochastic Oscillator is located near the overbought zone, the %K line is below the %D line, indicating sales of USD/JPY.
It is necessary to pay attention to the news feed on the US economy.
Support levels: 113.000, 112.500
Resistance levels: 113.600
We expect further growth of the USD/JPY quotations. The target level of movement is the level of 114.000.