Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 6 January, 2017

Forecast for the EURUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.04879
Opening: 1.06006
Chg. % for the last day: +1.13
Day range: 1.05733 – 1.06128
52-week range: 1.0366 – 1.1616

Yesterday, the US dollar continued to lose ground against the major currencies. The growth of the EUR/USD quotes exceeded 1%. The currency found resistance at 1.06100. Financial markets are waiting for the US labor market report.

forex-forecast-eurusd-06-01-2017

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

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

Today we expect important economic data from the US:
– average hourly wage (15:30 GMT+2:00);
– change in the number of employed in non-farm payrolls (15:30 GMT+2:00);
– unemployment rate (15:30 GMT+2:00);
– the trade balance (15:30 GMT+2:00).

Trading recommendations:

Support levels: 1.05750, 1.04900
Resistance levels: 1.06100

Today, we recommend to reduce the risks from open positions. High volatility should be expected. If data on the US labor market is weak, the EUR/USD quotes may reach the support level of 1.04900.

An alternative may be a further increase of the EUR/USD currency pair to the level of 1.06750.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:
Pre-opening: 1.23215
Opening: 1.24114
Chg. % for the last day: +0.78
Day range: 1.23727 – 1.24302
52-week range: 1.2016 – 1.5513

Yesterday the British currency rally continued. The pound rose against the US dollar by more than 90 points. This is due to the release of optimistic data on business activity in the country’s services sector. During the Asian trading session, the correction was observed.

forex-forecast-gpbusd-06-01-2017

The MACD histogram has started to decline and is below the signal line, which means sales of GBP/USD.

Stochastic Oscillator has fixed near the oversold zone, the %K line is above the %D line, indicating further growth of the GBP/USD quotes.

Important news from the UK is not expected today. It is necessary to pay attention to the statistics on the US economy.

Trading recommendations:

Support levels: 1.23600, 1.23050
Resistance levels: 1.24300

If the US labor market report is weak, the upward trend on GBP/USD may continue to the level of 1.24500.

An alternative may be the correction to the local support of 1.23050.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32994
Opening: 1.32242
Chg. % for the last day: -0.57
Day range: 1.32219 – 1.32684
52-week range: 1.2458 – 1.4692

Yesterday the USD/CAD currency pair kept the local resistance of 1.33150. There were the aggressive sales in the afternoon. The trading ended with decline of the USD/CAD quotes by more than 0.50%. The currency reached the level of 1.32000.

forex-forecast-usdcad-06-01-2017

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

Stochastic Oscillator is in the overbought zone. There are no signals yet.

The news background on the Canadian economy:
– employment change (15:30 GMT+2:00);
– the trade balance (15:30 GMT+2:00);
– unemployment rate (15:30 GMT+2:00).

Trading recommendations:

Support levels: 1.32000
Resistance levels: 1.33150, 1.34000

If economic data from Canada is weak, the correction on the USD/CAD currency pair may develop to the local resistance of 1.33400.

An alternative may be a further decline of the USD/CAD quotes to the level of 1.31750.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 117.222
Opening: 115.328
Chg. % for the last day: -1.63
Day range: 115.064 – 116.383
52-week range: 99.08 – 123.69

During yesterday’s trading session, the yen strengthened significantly against the US dollar. The decline of the USD/JPY quotes has exceeded 175 points. At the moment, the currency is being traded in a range of 115.700-116.300. We expect statistics from the US.

forex-forecast-usdjpy-06-01-2017

The MACD histogram has fixed above the signal line and continues to rise, indicating the increase of the USD/JPY currency pair.

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

It is necessary to pay attention to the report on the US labor market.

Trading recommendations:

Support levels: 115.700
Resistance levels: 116.300, 117.000

We expect the development of the downward trend on the USD/JPY currency pair to around 115.250.