Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 03 November, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.10580
Opening: 1.10962
Chg. % for the last day: +0.37
Day range: 1.10908 – 1.11254
52-week range: 1.0538 – 1.1616

The single currency continues to rise in price against the US dollar. Yesterday, the Federal Reserve System left interest rates unchanged at the level of 0.25-0.50%. Representatives of the Central Bank reported that the latest statistics on the US economy increases the likelihood of a rate hike in December.

forex-forecast-eurusd-03-11-2016

Indicators point to a correction development on the EUR/USD currency pair. The MACD histogram has started to decline and fixed below the signal line.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the development of the bearish moods on EUR/USD.

Today’s data on the index of business activity in the non-manufacturing sector of the US from the ISM (16:00 GMT + 2: 00) can significantly affect the balance of forces on the EUR/USD currency pair.

We also recommend to pay attention to the publication of the following statistical data:
– The unemployment rate in the EU (12:00 GMT + 2: 00);
– The number of initial claims for unemployment benefits in the US (14:30 GMT + 2: 00).

Trading recommendations:
Support levels: 1.11000, 1.10500
Resistance levels: 1.11500

In case of publication of optimistic data from the US, corrective movement on the EUR/USD currency pair may develop to the level of 1.10500.

An alternative would be a further increase of EUR/USD quotes to a local resistance 1.11500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22405
Opening: 1.23002
Chg. % for the last day: -0.01
Day range: 1.22962 – 1.23646
52-week range: 1.2016 – 1.5513

Over the past few trading sessions, the British currency has significantly corrected against the US dollar (by more than 20 pips). At the moment, the GBP/USD currency pair is testing the local resistance 1.23500.

forex-forecast-gpbusd-03-11-2016

The indicators show an ambiguous image. The MACD histogram is in the positive zone and above its signal line, indicating purchases on GBP/USD.

The 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 GBP/USD currency pair.

The news background for the British economy is eventful today. The publication of important statistics is expected:

– The index of business activity in the services sector (11:30 GMT + 2: 00);
– Bank of England inflation report (14:00 GMT + 2: 00);
– Decision on interest rate of Bank of England (14:00 GMT + 2: 00).

Trading recommendations

Support levels: 1.22700, 1.22000
Resistance levels: 1.23500

Before releasing of Bank of England decision, interest rate trend movements should not be expected. We recommend to search for entry points from the key support and resistance levels for the discovery of short-term speculative positions.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33861
Opening: 1.33855
Chg. % for the last day: -0.01
Day range: 1.33612 – 1.34007
52-week range: 1.2458 – 1.4692

The Canadian dollar continues to be traded in a flat. Unidirectional movement is observed. Today’s data on business activity in the non-manufacturing sector of the US may become a driver for the development of the trend movement on USD/CAD.

forex-forecast-usdcad-03-11-2016

Indicators signals are ambiguous. The MACD histogram has moved into the negative zone and is below the signal line, indicating the decline of the USD/CAD currency pair.

The Stochastic Oscillator has started to come out of the oversold zone, the %K line is above the %D line, which signals the growth of USD/CAD.

Important news for Canada’s economy is not expected today.

Trading recommendations:

Support levels: 1.33250
Resistance levels: 1.33900, 1.34250

We continue to expect the development of the downward trend on the USD/CAD currency pair. We recommend to consider selling to around 1.33300.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 104.067
Opening: 103.346
Chg. % for the last day: -0.82
Day range: 102.547 – 103.441
52-week range: 99.08 – 123.69

The last two trading sessions there were seen aggressive selling on the USD/JPY currency pair. Quotes fell by more than 200 pips. During the Asian trading session, the yen rally has continued.

forex-forecast-usdjpy-03-11-2016

The MACD histogram has started to rise and fixed above the signal line, which indicates the development of corrective movement on the USD/JPY currency pair.

The Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also indicates a possible increase of USD/JPY.

We recommend to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 102.650
Resistance levels: 103.500, 104.150

Yesterday’s forecast was confirmed. If the business activity in the US has an optimistic nature, USD/JPY may grow to around 103.500.

An alternative could be a further decline of USD/JPY to the local support level of 102.250.