Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 3 January, 2017

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.04850
Opening: 1.04542
Chg. % for the last day: +0.23
Day range: 1.04526 – 1.04900
52-week range: 1.0366 – 1.1616

Today, there is a growth in demand for the US dollar. Major currency pairs opened with a gap in support of the US currency. The EUR/USD currency pair has found resistance at 1.04900.

forex-forecast-eurusd-03-01-2017

Indicators point to sellers’ power. The MACD histogram is in the negative zone and is below the signal line, indicating sales of EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the development of the downward trend on the EUR/USD currency pair.

Economic Calendar on 03/01/2017:
– changes in the number of unemployed in Germany (10:55 GMT+2:00);
– the unemployment rate in Germany (10:55 GMT+2:00);
– the consumer price index in Germany (15:00 GMT+2:00);
– the index of business activity in the manufacturing sector from ISM in the US (17:00 GMT+2:00).

Trading recommendations:

Support levels: 1.04250
Resistance levels: 1.04900, 1.05800

The previous forecast was confirmed. We believe that the EUR/USD quotes may continue to fall. We recommend to consider selling to around 1.04000.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22582
Opening: 1.22728
Chg. % for the last day: +0.61
Day range: 1.22716 – 1.23071
52-week range: 1.2016 – 1.5513

Today, there is a high trading activity on the GBP/USD currency pair. Key support and resistance levels are 1.22550 and 1.23050.

forex-forecast-gbpusd-03-01-2017

The MACD histogram has started to decline and moved in the negative zone, indicating the decline of the GBP/USD quotes.

Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, that indicates the development of the “bearish” moods on the GBP/USD currency pair.

At 11:30 (GMT + 2:00), the data on the index of business activity in the manufacturing sector in the UK will be released.

Trading recommendations:

Support levels: 1.22550, 1.21100
Resistance levels: 1.23050

Our expectations were confirmed. We expect the decline of the GBP/USD quotes to the local support of 1.22400.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.35022
Opening: 1.34366
Chg. % for the last day: -0.52
Day range: 11.34039 – 1.34520
52-week range: 1.2458 – 1.4692

On Friday, 30 December, the Canadian dollar strengthened against the US dollar by more than 70 points. At the moment the USD/CAD currency pair is testing the support level of 1.34200.

forex-forecast-usdcad-03-01-2017

The MACD histogram has fixed in the negative zone, but above the signal line, which delivers a weak signal to sell USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating the growth of the USD/CAD quotes.

We recommend to pay attention to the news background from the United States.

Trading recommendations:

Support levels: 1.34200
Resistance levels: 1.34750, 1.35450

The previous forecast was confirmed. If statistics from the US is positive, the USD/CAD quotes may reach the level of 1.34700.

An alternative may be a continuation of the correction on USD/CAD to the local support of 1.33800.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 116.520
Opening: 117.485
Chg. % for the last day: +0.29
Day range: 117.214 – 118.033
52-week range: 99.08 – 123.69

During the Asian trading session, the yen weakened against the US dollar by more than 75 points. The USD/JPY currency pair has fixed above the resistance level of 117.450.

forex-forecast-usdjpy-03-01-2017

The MACD histogram is in the positive zone and continues to rise, which means purchases of USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the development of an upward trend on the USD/JPY currency pair.

Important news from Japan is not expected today. It is necessary to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 116.450, 117.00
Resistance levels: 118.150

If statistics from the US is weak, the correction on the USD/JPY currency pair may develop to the level of 117.500.

An alternative would be the USD/JPY quotes growth to the local resistance of 118.150.