Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 02 November, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.09764
Opening: 1.10580
Chg. % for the last day: +0.68
Day range: 1.10491 – 1.10996
52-week range:1.0538 – 1.1616

At the moment, the US dollar is under pressure because of political uncertainty and the upcoming elections in the United States. Recent polls from ABC News / Washington Post showed that Donald Trump and Hillary Clinton have nearly equivalent chances of winning, which increases the investors’ concerns.

forex-forecast-eurusd-02-11-2016

Indicators do not send strong signals yet. The MACD histogram has fixed in the positive zone but began to decline, indicating a possible correction of EUR/USD.

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

Today at 20:00 (GMT + 2: 00) the decision on the FRS interest rate will be made. Most experts believe that the Central Bank will not change monetary policy at the current meeting due to the increased risks in anticipation of the presidential elections in the United States. Currently, federal funds futures are quoting the probability of a rate hike at this meeting at the level of 7.2%.

We also recommend to pay attention to the publication of the following statistical data:
– The index of business activity in the manufacturing sector in Germany (10:55 GMT + 3: 00);
– Changes in the number of unemployed in Germany (10:55 GMT + 3: 00);
– Changes in the number of US non-farm payrolls from ADP (14:15 GMT + 3: 00).

Trading recommendations:

Support levels: 1.10500, 1.09900
Resistance levels: 1.11000

Yesterday’s forecast was confirmed. If data on the labor market in the US has an optimistic nature, the correction on EUR/USD the currency pair may develop to the support level of 1.10500.

An alternative could be a further increase of EUR/USD quotes to around 1.11500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22391
Opening: 1.22405
Chg. % for the last day: -0.01
Day range: 1.22102 – 1.22808
52-week range: 1.2016 – 1.5513

During yesterday’s trading session, the GBP/USD currency pair was under high volatility and trading activity. However, a unidirectional movement on the market was not observed. The currency was traded with a range of 50 pips. At present, the pound is testing the resistance level of 1.22700.

forex-forecast-gpbusd-02-11-2016

The MACD histogram is in the positive zone and above its signal line, indicating the increase of GBP/USD.

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

At 11:30 (GMT + 2: 00) the data on the index of business activity in the construction sector in Britain will be released. We also recommend to pay attention to the news feed from the USA.

Trading recommendations:

Support levels: 1.22000, 1.21600
Resistance levels: 1.22700

In the case of overcoming the resistance level of 1.22700, be sure to consider buying of GBP/USD to the level of 1.23250. It is better to look for confirmation and entry point into the market on smaller timeframes.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.34121
Opening: 1.33860
Chg. % for the last day: -0.15
Day range: 1.33694 – 1.34050
52-week range: 1.2458 – 1.4692

Yesterday, trading the USD/CAD currency pair was quite calm, despite the publication of important statistics on the Canadian economy. The USD/CAD currency pair U closed the trading session with a slight drop.

forex-forecast-usdcad-02-11-2016

The MACD histogram has started to decline and fixed below the signal line, indicating the selling of USD/CAD.

The Stochastic Oscillator as fixed in the neutral zone, the %K line is below the %D line, which also points to the development of the downward trend on the USD/CAD.

We recommend to pay attention to the news feed from the US.

Trading recommendations:

Support levels: 1.33250
Resistance levels: 1.33900, 1.34250

We expect the development of the bearish moods on the USD/CAD currency pair. We recommend to consider selling to around 1.33250.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 104.777
Opening: 104.067
Chg. % for the last day: -0.63
Day range: 103.466 – 104.164
52-week range: 99.08 – 123.69

Yesterday there was an increased demand for the currency of Japan. The yen rose in price against the US dollar by more than 70 pips. During today’s Asian session the USD/JPY pair has continued to decline.

forex-forecast-usdjpy-02-11-2016

The MACD histogram is in the negative zone and below its signal line, indicating a further decline of the USD/JPY currency pair.

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

Important news for the Japanese economy is not expected today.

Trading recommendations:

Support levels: 103.500
Resistance levels: 104.150, 104.650

We believe that the USD/JPY currency pair may continue to decline. Quotes can reach 103.250.