Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 5 January, 2017

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.04053
Opening: 1.04879
Chg. % for the last day: +0.79
Day range: 1.04807 – 1.05752
52-week range: 1.0366 – 1.1616

Yesterday, there were aggressive purchases on the EUR/USD currency pair. This is due to the release of optimistic data on inflation in the eurozone. The quotes growth exceeded 0.75%. Today the rally of the single currency continued.

forex-forecast-eurusd-05-01-2017

The MACD histogram is in the positive zone and above the signal line, indicating the increase of the EUR/USD currency pair.

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

News background:
– the release of the ECB meeting minutes on monetary policy (14:30 GMT+2:00);
– сhange in the number of employed in non-farm payrolls from the ADP in the US (15:15 GMT+2:00);
– the number of initial claims for unemployment benefits in the US (15:30 GMT+2:00);
– the index of business activity in the non-manufacturing sector from the ISM in the US (17:00 GMT+2:00).

Trading recommendations:

Support levels: 1.04900, 1.04250
Resistance levels: 1.05750

We expect a correction on the EUR/USD currency pair. Recommend to consider selling to around 1.04600.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.22392
Opening: 1.23215
Chg. % for the last day: +0.68
Day range: 1.22702 – 1.23629
52-week range: 1.2016 – 1.5513

During yesterday’s trading session the pound strengthened against the US dollar by more than 85 points. The currency found resistance at 1.23600. At the moment, the US dollar has won back a large part of yesterday’s losses.

forex-forecast-gbpusd-05-01-2017

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

Trading recommendations:

Support levels: 1.22550
Resistance levels: 1.23050, 1.23600

If statistics from the UK is weak, the correction on the GBP/USD currency pair may continue. Potential movement to 1.22300.

An alternative may be the growth of the GBP/USD quotes to the level of 1.23500.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.34294
Opening: 1.32994
Chg. % for the last day: -0.96
Day range: 1.32541 – 1.33124
52-week range: 1.2458 – 1.4692

Over the past week, the Canadian dollar strengthened significantly against the US dollar. The decline of the USD/CAD quotes has exceeded 300 points. At the moment, the currency has found support at 1.32550.

forex-forecast-usdcad-05-01-2017

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

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

At 15:30 (GMT +2:00), the raw material price index (RMPI) in Canada will be released.

Trading recommendations:

Support levels: 1.32550
Resistance levels: 1.33400, 1.34000

Yesterday’s forecast was confirmed. At the moment, there is divergence of price and the MACD histogram on the USD/CAD currency pair, indicating the correction development. We recommend to consider buying USD/CAD to the level of 1.33350.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:
Pre-opening: 117.732
Opening: 117.222
Chg. % for the last day: -0.41
Day range: 115.578 – 117.423
52-week range: 99.08 – 123.69

During the Asian trading session, there was an increase in demand for the yen. The decline of the USD/JPY quotes has exceeded 150 points. The currency has formed a local support level of 115.700.

forex-forecast-usdjpy-05-01-2017

Indicators signals are ambiguous. The MACD histogram is in the negative zone and below the signal line, indicating sales of USD/JPY.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates the growth of the USD/JPY currency pair.

The news background of the Japanese economy is calm today. It is necessary to pay attention to the news feed from the United States.

Trading recommendations:

Support levels: 115.700
Resistance levels: 116.300, 117.000

Our expectations were confirmed yesterday. If statistics from the US is positive, the USD/JPY currency pair may grow to the local resistance of 117.000.

An alternative may be a continuation of the downward trend on the USD/JPY currency pair to around 115.500.