Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 07 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.07641
Opening: 1.07177
Chg. % for the last day: -0.42
Day range: 1.07107 – 1.07296
52-week range: 1.0538 – 1.1616

Yesterday, the correction on the EUR/USD currency pair was observed. The euro has lost in price more than 50 pips. At the moment, the currency is being traded in a range of 1.06850-1.07400. Financial markets are waiting for the ECB meeting, which will take place on 8 December.

forex-forecast-eurusd-07-12-2016

Indicators do not send strong signals. The MACD histogram has fixed near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. Currently, there are no signals.

The news background of the EU economy is calm now. At 17:00 (GMT + 2: 00) the data on the number of vacancies in the JOLTS labor market in the US will be released.

Trading recommendations:

Support levels: 1.07400, 1.06850
Resistance levels: 1.07950

We continue to expect a continuation of the upward trend on the EUR/USD. We recommend buying to around 1.07750.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.27309
Opening: 1.26791
Chg. % for the last day: -0.44
Day range: 1.26098 – 1.26827
52-week range: 1.2016 – 1.5513

During yesterday’s trading session, the GBP/USD currency pair kept the resistance level of 1.27500, prompting aggressive selling. During the Asian session, the dollar rally continued. The GBP/USD quotes fell by more than 50 points.

forex-forecast-gpbusd-07-12-2016

Indicators point to sellers’ power on the GBP/USD currency pair. The MACD histogram is in the negative zone and below the signal line.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also points to the selling of GBP/USD.

Today, we are waiting for important economic data from the UK:
– The price index for housing from Halifax (10:30 GMT + 2: 00);
– The volume of industrial production (11:30 GMT + 2: 00);
– Assessment of GDP growth from NIESR (17:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.25800
Resistance levels: 1.26850, 1.27500

If statistics from the UK is positive, the GBP/USD quotes may reach 1.27000.

An alternative may be a continuation of the corrective movement on the GBP/USD currency pair to the local support of 1.25800.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32702
Opening: 1.32773
Chg. % for the last day: +0.07
Day range: 1.32726 – 1.32923
52-week range: 1.2458 – 1.4692

Yesterday, a significant change in the course of the USD/CAD currency pair did not happen. Trading session ended with a slight increase of the US dollar. The market is waiting for the decision of the Bank of Canada regarding future monetary policy.

forex-forecast-usdcad-07-12-2016

The MACD histogram has started to rise and moved into the positive zone, which indicates the growth of USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating selling of USD/CAD.

At 17:00 (GMT + 2: 00) a decision of the Central Bank of Canada on the interest rate will be taken.

Trading recommendations:

Support levels: 1.32500
Resistance levels: 1.33250, 1.34000

Before the meeting of the Central Bank of Canada, trend movements should not be expected. We recommend to open short-term speculative positions from the key support and resistance levels.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 113.856
Opening: 114.004
Chg. % for the last day: +0.16
Day range: 113.941 – 114.339
52-week range: 99.08 – 123.69

Yesterday the USD/JPY currency pair kept the support level of 113.600. The US dollar strengthened slightly against the yen. At the moment, the currency is being traded near the local resistance of 114.200.

forex-forecast-usdjpy-07-12-2016

The MACD histogram is in the positive area and continues to rise, which indicates the development of an upward trend on the USD/JPY.

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 news feed from the USA.

Trading recommendations:

Support levels: 113.600, 112.350
Resistance levels: 114.750

If prices keep the local offers zone of 114.200-114.450, the corrective movement on the USD/JPY currency pair may develop to around 113.600.