Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 10 February, 2017

Technical showings of the currency pair:

Pre-opening: 1.06981
Opening: 1.06553
Chg. % for the last day: -0.39
Day range: 1.06353 – 1.06673
52-week range: 1.0366 – 1.1616

Yesterday, the US dollar strengthened against the “majors”. This is due to D. Trump’s promises to provide “phenomenal” tax reform in the near future. At the moment there is sellers’ power on the EUR/USD currency pair.

forex-forecast-eurusd-10-02-2017

The MACD histogram is in the negative zone and continued to decline, indicating the drop of the EUR/USD quotes.

Stochastic Oscillator is near the oversold zone, the %K line is below the %D line, which delivers a weak signal to sell EUR/USD.

Economic Calendar on 02/10/2017:
– president of the Bundesbank Weidmann’s speech (12:00 GMT + 2: 00);
– price indices for exports and imports in the US (15:30 GMT + 2: 00);
– the expectations and consumer sentiments index from the University of Michigan (17:00 GMT + 2: 00);
– report on the performance of the US federal budget (21:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.06150
Resistance levels: 1.06550, 1.07150

We believe that the downward trend in the EUR/USD currency pair may continue. The potential for movement – 1.06150-1.05900.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.25389
Opening: 1.24965
Chg. % for the last day: -0.34
Day range: 1.24656 – 1.25209
52-week range: 1.1986 – 1.5020

Yesterday, there was a high trading activity on the GBP/USD currency pair. Trading ended with a slight increase in the US dollar against the pound. At the moment the GBP/USD currency pair is testing the support level of 1.24700.

forex-forecast-gpbusd-10-02-2017

The MACD histogram has moved into the negative zone and continued to decline, indicating the development of the downward trend on GBP/USD.

Stochastic Oscillator is near the oversold zone, the %K line is below the %D line, which delivers a weak signal to sell GBP/USD.

Today, we are waiting for important news from the UK:
– the volume of production in manufacturing (11:30 GMT + 2: 00);
– the balance of trade (11:30 GMT + 2: 00);
– assessment of GDP growth from NIESR (17:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.24700
Resistance levels: 1.25500, 1.26400

If statistics from the UK is optimistic, the GBP/USD quotes may grow to the level of 1.25400.

An alternative could be a downward trend in GBP/USD to the local support of 1.24100.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31447
Opening: 1.31442
Chg. % for the last day: +0.01
Day range: 1.31354 – 1.31682
52-week range: 1.2458 – 1.4692

During yesterday’s trading, there was a high volatility on the USD/CAD currency pair. However, a significant change of the rate did not happen. At the moment, the currency is testing the resistance level of 1.31500. We expect statistics on the labor market in Canada.

forex-forecast-usdcad-10-02-2017

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

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

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

Trading recommendations:

Support levels: 1.30900
Resistance levels: 1.31500, 1.32000

Our yesterday’s assumptions were confirmed. If statistics on the labor market in Canada is weak, the USD/CAD quotes may growth to the level of 1.31900.

An alternative would be the USD/CAD currency pair reduction to the support level of 1.30900.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 111.938
Opening: 113.231
Chg. % for the last day: +1.17
Day range: 113.221 – 113.848
52-week range: 99.08 – 123.69

Yesterday, aggressive purchases were observed on the USD/JPY currency pair. The growth of the USD/JPY quotations exceeded 1%. The currency found resistance at the level of 113.850. The US dollar is supported by a growth of government bonds yield.

forex-forecast-usdjpy-10-02-2017

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

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating the correction in USD/JPY.

It is necessary to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 113.150, 112.450
Resistance levels: 113.850

We expect a continuation of the upward trend on the USD/JPY currency pair. The potential for movement is to the level of 114.000.