Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 05 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
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Pre-opening: 1.06609
Opening: 1.06277
Chg. % for the last day: +0.10
Day range: 1.05054 – 1.06279
52-week range: 1.0538 – 1.1616

During Asian trading session, there was an increased trading activity on the EUR/USD currency pair. This is due to political uncertainty in Italy. Prime Minister Matteo Renzi has resigned due to the unsuccessful referendum on constitutional reform on Sunday, on 4 December. At the moment, the currency is being traded in a range of 1.05800-1.06400.

forex-forecast-eurusd-05-12-2016

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

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which means purchases of EUR/USD.

News feed:
– 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);
– ECB President Draghi’s speech (16:00 GMT + 2: 00);
– An index of business activity in the non-manufacturing sector of the US from the ISM (17:00 GMT + 2: 00);

Trading recommendations:

Support levels: 1.05800
Resistance Levels: 1.06400, 1.06850

If statistics from the EU is positive, an upward trend on the EUR/USD currency pair may develop to the level of 1.06500.

An alternative may be a correction to the local support level of 1.05500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.25882
Opening: 1.26714
Chg. % for the last day: +1.08
Day range: 1.26266 – 1.27376
52-week range: 1.2016 – 1.5513

On Friday, the GBP/USD currency pair was under influence of “bullish” moods. This is due to the release of positive data on business activity in the UK. The growth of the GBP/USD quotations exceeded 1%. At the moment, the currency has formed the local support and resistance levels: 1.26850 and 1.27500.

forex-forecast-gpbusd-05-12-2016

The MACD histogram is in the positive zone, but below the signal line, which delivers a weak signal to buy GBP/USD.

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

The news background for the UK economy:
– The index of business activity in the services sector (11:30 GMT + 2: 00);
– The speech of the Bank of England’s head Carney (19:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.26850, 1.25900
Resistance levels: 1.27500

Our Friday expectations were confirmed. We believe that the GBP/USD growth may continue. We recommend buying to around 1.27750.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33170
Opening: 1.32838
Chg. % for the last day: -0.16
Day range: 1.32800 – 1.33565
52-week range: 1.2458 – 1.4692

Over the past week, the Canadian dollar corrected significantly against the US dollar.The USD/CAD quotations falling exceeded 200 points. At the moment, the currency has found support at 1.33000.

forex-forecast-usdcad-05-12-2016

The MACD histogram has started to rise and fixed above the signal line, indicating the growth of USD/CAD.

Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, which also points to purchases of USD/CAD.

There is no important economic news from Canada today. One should pay attention to the statistics from the US.

Trading recommendations:

Support levels: 1.33000
Resistance levels: 1.33650, 1.34000

Currently, the USD/CAD currency pair is being traded in the demand zone of 1.33000-1.33200. If the price keeps the zone, the currency may reach the level of 1.33600.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 114.171
Opening: 113.301
Chg. % for the last day: -0.45
Day range: 112.848 – 114.098
52-week range: 99.08 – 123.69

During Friday’s trading session, the yen kept the local resistance level of 114.000. At the moment, the technical pattern of USD/JPY indicates the correction development.

forex-forecast-usdjpy-05-12-2016

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

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

The news background for the Japanese economy is calm now.

Trading recommendations:

Support levels: 113.600, 112.350
Resistance levels: 114.750

If the price keeps the resistance level of 114.000, “bearish” moods may develop on the USD/JPY currency pair. We recommend selling to around 113.500.