Forex Forecast on March 02 for EURUSD, GBPUSD, USDCAD, USDJPY

The forecast for EUR/USD

Technical indicators of the currency pair:

Prev. Opening: 1.05757
Opening: 1.05466
Chg. % Last day: -0.27
Day range: 1.05216 – 1.05528
52-week range: 1.0366 – 1.1616

Yesterday the US dollar continued to strengthen against the major currencies. Support is provided by positive data on business activity in the manufacturing sector of the country. Currently, EUR/USD is testing the support of 1.05300. The market has become more optimistic about the possibility of increasing interest rates at the next Fed meeting.

Indicators signals are ambiguous. The MACD histogram is in the negative zone and below its signal line, indicating the “bearish” moods on EUR/USD.

Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, which means purchases if EUR/USD.

Newsline on 03/02/2017:
– the consumer price index in the euro area (12:00 GMT + 2: 00);
– the unemployment rate in the Eurozone (12:00 GMT + 2: 00);
– the level of unemployment in Germany (11:00 GMT + 2: 00);
– the number of initial claims for benefits for unemployment in the US (15:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.05300, 1.05000
Resistance levels: 1.05850

If data on inflation in the euro area is positive, a correction may develop in EUR/USD to the resistance level of 1.05850.

An alternative could be a continuation of the downward trend to the level of 1.04750-1.04500.

The forecast for GBP/USD

Technical indicators of the currency pair:

Prev. Opening: 1.23795
Opening: 1.22926
Chg. % Last day: -0.69
Day range: 1.22597 – 1.23012
52-week range: 1.1986 – 1.5020

At the moment “bearish” moods are prevailing on the GBP/USD currency pair. During yesterday’s trading, the pound weakened against the US dollar by more than 80 points. The currency found support at 1.22750. Pressure on the pound is caused by weak data on business activity in the manufacturing sector of the country.

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

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

At 11:30 (GMT+2:00) the index of business activity in the UK construction sector will be released.
 
Trading recommendations:

Support levels: 1.22750
Resistance levels: 1.23500, 1.24000

If the economic data from the UK is strong, a correction in GBP/USD is possible to the resistance level of 1.23500.

An alternative could be a further drop in GBP/USD quotes to around 1.22500-1.22250.

The forecast for USD/CAD

Technical indicators of the currency pair:

Prev. Opening: 1.32998
Opening: 1.33249
Chg. % Last day: +0.20
Day range: 1.32835 – 1.33385
52-week range: 1.2458 – 1.4692

Yesterday, the Bank of Canada left its monetary policy unchanged. The USD/CAD continued. The currency reached the resistance level of 1.33500. Recent statistics from the United States supports the US currency. We expect GDP data for Canada.

The MACD histogram has started to decline and fixed below the signal line, which signals the correction in USD/CAD.

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

Today we expect important economic data from Canada. At 15:30 (GMT+2:00), the data on the GDP of the country will be released.
   
Trading recommendations:

Support levels: 1.32850, 1.32000
Resistance levels: 1.33500

If the growth of the Canadian economy is optimistic, a correction may develop in the USD/CAD currency pair. The potential for movement – 1.32850.

An alternative could be a further increase of USD/CAD to the round level of 1.34000.

The forecast for USD/JPY

Technical indicators of the currency pair:

Prev. Opening: 112.782
Opening: 113.729
Chg. % Last day: +0.84
Day Range: 113.686 – 114.311
52-week range: 99.08 – 123.69

At the moment there is aggressive buying on the USD/JPY currency pair. Yesterday the price growth amounted to 0.84%. Today, the yen continued to lose ground against the US currency. Local resistance is the 114.300 mark.

MACD is in the positive zone and above its signal line, indicating a continuation of the upward trend in USD/JPY.

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

The news background for the Japanese economy is calm.

Trading recommendations:

Support levels: 113.750, 113.300
Resistance levels: 114.300

The previous forecast was confirmed. We expect a correction of the USD/JPY currency pair. One should consider selling to around 113.850-113.750.