Chg. % for the last day: -0.31
Day range: 1.06607 – 1.07514
52-week range: 1.0366 – 1.1616
Today, the single currency weakened significantly against the US dollar. At the moment, a drop of the EUR/USD quotes exceeded 0.75%. This is due to the political instability in Europe. The nearest support is the level of 1.06550.
The MACD histogram has consolidated in the negative zone and below its signal line, indicating a continuation of the downward trend in EUR/USD.
Stochastic Oscillator is in the oversold zone, the %K line crossed the %D line. There are no signals yet.
Economic Calendar on 02/07/2017:
– trade balance in the US (15:30 GMT + 2: 00);
– the number of vacancies in the JOLTS labor market in the US (17:00 GMT + 2: 00);
– President of the Bundesbank Weidmann’s speech (18:35 GMT + 2: 00).
In December, the volume of industrial production in Germany declined and amounted to -3.0%. Market expectations were at 0.3%.
Support levels: 1.06550
Resistance levels: 1.07150, 1.07550
If the price consolidates below 1.06550, the EUR/USD quotes may continue to fall. The potential for movement is to 1.06250.
Forecast for the GBPUSD currency pair
Chg. % for the last day: -0.10
Day range: 1.23458 – 1.24876
52-week range: 1.1986 – 1.5020
The pound continues to lose ground against the US currency. Today, the GBP/USD pair fell by more than 100 points. At the moment, the key levels are: support – 1.23500; resistance – 1.24150.
The MACD histogram has moved into the negative zone and fixed below the signal line, indicating a drop of GBP/USD.
Stochastic Oscillator has reached the oversold zone, the %K line crossed the %D line. There are no signals yet.
The pressure on the British currency is caused by weak data on the index of housing prices from Halifax. The January the figure was -0.9% compared to the previous value of + 1.6%.
Support levels: 1.24150
Resistance levels: 1.24700, 1.25250
Our previous expectations were confirmed. We believe that the downward trend on the GBP/USD currency pair may continue. One should consider selling to the mark of 1.23300-1.23250.
Forecast for the USDCAD currency pair
Chg. % for the last day: +0.48
Day range: 1.30738 – 1.31978
52-week range: 1.2458 – 1.4692
Since the beginning of this week, the Canadian dollar significantly weakened against the US dollar. The growth of the USD/CAD quotations exceeded 150 points. At the moment, the currency is being traded near the circular level of 1.32000. The pressure on the Canadian dollar is caused by a decrease of oil prices.
The MACD histogram is in the positive zone and continues to rise, which means purchases of USD/CAD.
Stochastic Oscillator is in the overbought zone, the %K line crossed the %D line. Currently, there are no signals.
The news background on the Canadian economy:
– building permits (15:30 GMT + 2: 00);
– the balance of trade (15:30 GMT + 2: 00);
– Ivey PMI (17:00 GMT + 2: 00).
Support levels: 1.31250, 1.30800
Resistance levels: 1.32000
If statistics from Canada is optimistic, the growth of the USD/CAD currency pair may continue to the mark of 1.32250-1.32500.
An alternative may be a correction in USD/CAD to the local support of 1.31500.
Forecast for the USDJPY currency pair
Chg. % for the last day: -0.80
Day range: 111.587 – 112.275
52-week range: 99.08 – 123.69
Yesterday, sales prevailed on the USD/JPY currency pair. The yen rose against the US dollar by more than 70 points. The demand for Japan’s currency is maintained due to the political uncertainty in the US and Europe. At the moment the USD/JPY currency pair is testing the “mirror” resistance level of 112.300.
The MACD histogram is in the negative zone, but above the signal line, which delivers a weak signal to sell USD/JPY.
Stochastic Oscillator has consolidated near the overbought zone, the %K line crossed the %D line. Currently, there are no signals.
It is necessary to pay attention to the news feed from the US.
Support levels: 111.600
Resistance levels: 112.300, 113.100
The previous forecast was confirmed. We believe that the “bearish” moods on the USD/JPY currency pair may continue. The nearest target for taking profit is 111.750-111.500.