Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 04 November, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.10962
Opening: 1.11062
Chg. % for the last day: +0.07
Day range: 1.10866 – 1.11108
52-week range: 1.0538 – 1.1616

Yesterday, the euro showed diversified dynamics. Trading was in the range of 1.10600-1.11200. Today important data on the US economy – NFP – will be released.

forex-forecast-eurusd-04-11-2016

Indicators signals are ambiguous. The MACD histogram has started to decline and fixed below the signal line, indicating sales on the EUR/USD currency pair.

The Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates the development of an upward trend on EUR/USD.

News feed:
– A composite index of business activity in the EU from Markit (11:00 GMT + 2: 00);
– Changes in the number of US non-farm payrolls (14:30 GMT + 2: 00);
– The level of unemployment in the US (14:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.10600, 1.09900
Resistance levels: 1.11200

We recommend to wait for the publication of the US labor market report. It is better to look for the point of entry into the market after the news release from the key support and resistance levels. If the statistics is weak, the EUR/USD quotes may reach $ 1.11750.

An alternative would be the EUR/USD currency pair reduction to the local support level of 1.10250.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.23005
Opening: 1.24630
Chg. % for the last day: +1.29
Day range: 1.24485 – 1.24807
52-week range: 1.2016 – 1.5513

During yesterday’s trading session there was an increased demand for the pound. In October, the business activity in the UK services sector increased by 3.6%, having exceeded market expectations. The Bank of England left its monetary policy unchanged. Also, the head of the Central Bank stated that before the end of this year rates would remain unchanged.

forex-forecast-gpbusd-04-11-2016

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

The Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

Important news for the British economy is not expected today. We recommend to pay attention to the statistics on the US labor market.

Trading recommendations

Support levels: 1.24350, 1.23450
Resistance levels: 1.24900

If US economic statistical data is optimistic, the correction on GBP/USD may develop to the level of correction of 1.23900.

An alternative would be the further growth of the UK currency against the US dollar to the local resistance level of 1.25500.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33858
Opening: 1.33964
Chg. % for the last day: +0.04
Day range: 1.33859 – 1.34170
52-week range: 1.2458 – 1.4692

Today, we should expect increased volatility on the USD/CAD currency pair against the background of releasing the reports on the labor market in Canada and the United States. At the moment, the currency is being traded in a range of 1.33700-1.34150.

forex-forecast-usdcad-04-11-2016

The indicators show an ambiguous image. The MACD histogram has started to rise, and is above its signal line, indicating a growth of the USD/CAD currency pair.

The Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating sales on USD/CAD.

The news background on the Canadian economy:
– Employment change (14:30 GMT + 3: 00);
– Unemployment level (14:30 GMT + 3: 00);
– Ivey PMI (16:00 GMT + 3: 00)

You must also pay attention to the news feed from the USA.

Trading recommendations:

Support levels: 1.33700
Resistance levels: 1.34150

Today, the USD/CAD currency pair will be under increased trading activity. Recommend to reduce the risks while opening positions.

Before the publication of data on the labor market, the trend movements should not be expected. It is better to open transactions after the release of the news and the emergence of additional evidence on smaller timeframes.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 103.347
Opening: 102.971
Chg. % for the last day: -0.32
Day range: 102.833 – 103.355
52-week range: 99.08 – 123.69

Yesterday’s trading session was quite active for USD/JPY. Nevertheless, there was no trend movement. The currency tested levels of support and resistance: 102.600 and 103.300. Today’s driver of the future trend on the USD/JPY currency pair may be the NFP report.

forex-forecast-usdjpy-04-11-2016

The MACD histogram has started to rise and moved into the positive zone, indicating purchases on the USD/JPY currency pair.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating the further strengthening of the yen against the US dollar.

The news background for the Japanese economy is calm. It is worth to pay attention to statistics from the US.

Trading recommendations:

Support levels: 102.600
Resistance levels: 103.300, 103.950

In case of publication of a weak report on US labor market, the USD/JPY quotations may continue to decline and reach the local support of 102.250.

An alternative would be an increase of USD/JPY to around 103.950.