Chg. % for the last day: -0.10
Day range: 1.07452 – 1.07720
52-week range: 1.0366 – 1.1616
Yesterday’s the trading on the EUR/USD currency pair was very active. Euro held the key resistance level of 1.08100, prompting aggressive selling in the afternoon. At the moment, the currency is testing the mark of 1.07550. We expect statistics on the US labor market.
Signals indicators are different. The MACD histogram has consolidated in the negative zone and continued to decline, indicating the EUR/USD quotations falling.
Stochastic Oscillator is in the neutral zone, the %K line is above the D% line, which means purchases on EUR/USD.
Today important statistics on the labor market in the United States will be published:
– average hourly wage (15:30 GMT + 2: 00);
– change in the number of employed people in the non-farm sector of the country (15:30 GMT + 2: 00);
– the number of initial claims for unemployment benefits in the US (15:30 GMT + 2: 00);
– the proportion of the economically active population (15:30 GMT + 2: 00);
– unemployment level (15:30 GMT + 2: 00).
We also recommend to pay attention to the following information:
– the index of business activity in the services sector in Germany (10:55 GMT + 2: 00);
– the index of business activity in the euro area services sector (11:00 GMT + 2: 00);
– the volume of euro-zone retail sales (12:00 GMT + 2: 00);
– the index of business activity in the non-manufacturing sector of the US from ISM (17:00 GMT + 2: 00).
Support levels: 1.07550, 1.07150
Resistance levels: 1.08100
If statistics from the US is optimistic, a downward trend on EUR/USD may develop to the level of 1.07000.
An alternative would be an increase of the EUR/USD quotes to the resistance level of 1.08100.
Forecast for the GBPUSD currency pair
Chg. % for the last day: -1.03
Day range: 1.25094 – 1.25357
52-week range: 1.1986 – 1.5020
Yesterday, the pound dropped significantly against the US dollar. This is due to the meeting of the Bank of England. The regulator kept the monetary policy. The Central Bank raised its forecast for economic growth. At the same time, the headship expects inflation reduction because of the uncertainty in Brexit. GBP/USD has found support at the local level of 1.25200.
Indicators do not send strong signals. The MACD histogram has consolidated in the negative zone, but above the signal line, which delivers a weak signal to sell GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals yet.
At 11:30 (GMT + 2: 00) the index of business activity in the UK services sector will be released.
Support levels: 1.24700
Resistance levels: 1.25700, 1.26650
If statistics from the UK is weak, a drop of the GBP/USD quotes may continue. The potential for movement is up to 1.24700.
An alternative would be a correction to the level of 1.26000.
Forecast for the USDCAD currency pair
Chg. % for the last day: -0.18
Day range: 1.30192 – 1.30390
52-week range: 1.2458 – 1.4692
Yesterday, the USD/CAD currency pair was in high trading activity. However, there was no unidirectional movement. Trading ended with a slight increase in the Canadian dollar against the US currency. The market is waiting for the US economic data release.
Indicators do not send accurate signals. The MACD histogram is located near the 0 mark.
Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. Currently, there are no signals.
The news background on the economy of Canada is calm. It is necessary to pay attention to the US economic calendar.
Support levels: 1.29850
Resistance levels: 1.30550, 1.31250
If data on the US labor market is weak, the “bearish” moods may develop to the level of 1.29500.
An alternative would be an increase of USD/CAD to the level of 1.31250.
Forecast for the USDJPY currency pair
Chg. % for the last day: -0.39
Day range: 112.506 – 113.249
52-week range: 99.08 – 123.69
During the Asian trading session, the yen weakened slightly against the US dollar. This is due to the Bank of Japan’s intention to redeem the government bonds of the country. At the moment the USD/JPY currency pair is testing the resistance level of 113.100.
The MACD histogram has started to rise and moved into the positive zone, which indicates the growth of the USD/JPY currency pair.
Stochastic Oscillator is near the overbought zone, the %K line crossed the %D line. There are no signals yet.
The publication of important statistics on Japan’s economy is not planned today.
Support levels: 112.300
Resistance levels: 113.100, 113.900
Yesterday’s forecast proved to be quite accurate. It is necessary to wait for the statistical data on the US economy. If the data is positive, an upward trend on USD/JPY may develop tp the resistance level of 113.900.
An alternative could be a drop of the USD/JPY quotes to around 112.300.