Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 4 January, 2017

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.04542
Opening: 1.04053
Chg. % for the last day: -0.51
Day range: 1.03894 – 1.04406
52-week range: 1.0366 – 1.1616

Yesterday the EUR/USD quotes fell more than 0.50%. The US dollar was supported by optimistic data on the index of business activity in the manufacturing sector of the country. The currency has found support at 1.03750.

forex-forecast-eurusd-04-01-2017

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

Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, that delivers a weak signal to buy EUR/USD.

Today we expect important statistics from the EU:
– an index of business activity in the services sector in Germany (10:55 GMT+2:00);
– an index of business activity in the euro zone services sector (11:00 GMT+2:00);
– Eurozone consumer price index (12:00 GMT+2:00).

At 21:00 (GMT +2:00), the minutes of the FOMC will be released.

Trading recommendations:

Support levels: 1.04250, 1.03750
Resistance levels: 1.04900

Our expectations were confirmed yesterday. If data on inflation in the euro zone is positive, the EUR/USD quotes may reach the resistance level of 1.04900.

An alternative may be the EUR/USD currency pair reduction to the level of 1.03600.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.22728
Opening: 1.22392
Chg. % for the last day: -0.29
Day range: 1.22204 – 1.22876
52-week range: 1.2016 – 1.5513

During the Asian trading session, the pound won back a large part of yesterday’s losses. At the moment, the GBP/USD currency pair is being traded near the local demand area of 1.22550-1.22700.

forex-forecast-gbpusd-04-01-2017

The MACD histogram has started to rise and is above the signal line, indicating the growth of the GBP/USD currency pair.

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

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

Trading recommendations:

Support levels: 1,22550, 1.21100
Resistance levels: 1.23050

Yesterday’s forecast was confirmed. If statistics from the UK is weak, a downward trend may develop to the level of 1.22300.

An alternative may be a correction to the resistance level of 1.23300.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:
Pre-opening: 1.34366
Opening: 1.34294
Chg. % for the last day: -0.06
Day range: 1.34005 – 1.34572
52-week range: 1.2458 – 1.4692

Yesterday, a significant change of the USD/CAD rate has not happened. The trading ended with a slight increase of the Canadian dollar. At the moment, the key levels are: support – 1.34000; resistance – 1.34500.

forex-forecast-usdcad-04-01-2017

The MACD histogram does not give strong signals. The indicator is near the 0 mark.

Stochastic Oscillator has consolidated in the neutral zone, the %K line is below the %D line, indicating the decline of the USD/CAD quotes.

The news background of the economy of Canada is calm today.

Trading recommendations:

Support levels: 1.34000
Resistance levels: 1.34500, 1.34900

We expect the development of the “bearish” moods on the USD/CAD currency pair. Recommend to consider selling to around 1.33650.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:
Pre-opening: 117.485
Opening: 117.732
Chg. % for the last day: +0.19
Day range: 117.533 – 118.182
52-week range: 99.08 – 123.69

The USD/JPY currency pair kept the resistance level of 118.150. A technical pattern indicates the development of the downward trend. The nearest support level is 117.450.

forex-forecast-usdjpy-04-01-2017

The MACD histogram has started to decline and is below the signal line, indicating sales on USD/JPY.

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 USD/JPY currency pair.

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

Trading recommendations:

Support levels: 117.450, 117.00
Resistance levels: 118.150

If the price consolidates below 117.650, be sure to consider selling of USD/JPY. Potential movement is to 117.250. It is better to look for entry points into the market on smaller timeframes.