Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 14 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.06343
Opening: 1.06234
Chg. % for the last day: -0.08
Day range: 1.06207 – 1.06650
52-week range: 1.0538 – 1.1616

Financial markets are waiting for the US Federal Reserve System meeting. Futures on the federal funds are quoting the possibility of a rate hike at the level of 91%. Currently, the EUR/USD currency pair is being traded in a range of 1.05900-1.06850.

forex-forecast-eurusd-14-12-2016

The indicators show an ambiguous image. The MACD histogram has started up and moved into the positive zone, which indicates the growth of EUR/USD.

Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating sales of EUR/USD.

Today we expect a lot of important economic news:
– the volume of industrial production of the euro zone (12:00 GMT + 2: 00);
– base index of retail sales in the US (15:30 GMT + 2: 00);
– producer price index in the US (15:30 GMT + 2: 00);
– the volume of retail sales in the US (15:30 GMT + 2: 00);
– economic forecasts from FOMC (21:00 GMT + 2: 00);
– decision on interest rates of FRS (21:00 GMT + 2: 00);
– FOMC press-conference (21:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.05900, 1.05350
Resistance levels: 1.06850

We recommend to reduce the risks from open positions. Further dynamics of the major currency pairs will depend on the decision of the Central Bank, and comments of the FOMC members. If the regulator declares the accelerating of rates growth, the EUR/USD currency pair may fall to the level of 1.05200.

An alternative would be an increase of the EUR/USD quotes a local resistance of 1.07100.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.26768
Opening: 1.26581
Chg. % for the last day: -0.17
Day range: 1.26406 – 1.26763
52-week range: 1.2016 – 1.5513

Yesterday’s trading ended with a slight decline of the pound against the US dollar. At the moment, currency market participants are expecting statistics from the UK and the US. The currency is being traded near the resistance level of 1.26850.

forex-forecast-gpbusd-14-12-2016

Indicators do not send strong signals. The MACD histogram is located near the 0 mark.

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

All news on the UK economy:
– the average level of wages, taking into account premiums (11:30 GMT + 2: 00);
– change in the number of claims for unemployment benefits (11:30 GMT + 2: 00);
– unemployment level (11:30 GMT + 2: 00);
– the Bank of England head Carney’s speech (14:15 GMT + 2: 00).

You must also pay attention to the news feed from the US.

Trading recommendations:

Support levels: 1.25800
Resistance levels: 1.26850, 1.27500

If the data on the UK labor market is positive, the GBP/USD quotations may grow to the level of 1.27500.

An alternative would be to the GBP/USD currency pair reduction to the local support of 1.26000.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31284
Opening: 1.31303
Chg. % for the last day: -0.02
Day range: 1.31117 – 1.31417
52-week range: 1.2458 – 1.4692

The USD/CAD currency pair continues to test the support level of 1.31150. During yesterday’s trading, the significant change of the Canadian dollar has not happened.

forex-forecast-usdcad-14-12-2016

The MACD histogram has started to decline and fixed below the signal line, indicating sales of the USD/CAD currency pair.

Stochastic Oscillator has reached oversold zone, the %K line crossed the %D line. Currently there is no signal.

We recommend to pay attention to the statistics on the US economy.

Trading recommendations:

Support levels: 1.31150
Resistance levels: 1.31750, 1.32500

If US economic data is weak, the USD/CAD currency pair may reduce to the level of 1.30500.

An alternative would be an increase of the USD/CAD quotes to a local resistance level of 1.31750.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 115.001
Opening: 115.180
Chg. % for the last day: +0.14
Day range: 114.869 – 115.326
52-week range: 99.08 – 123.69

Yesterday, there was a high trading activity on the USD/JPY currency pair. However, a significant change in the yen did not happen. At the moment, the currency is in a flat with a range of 50 points. We expect the US Federal Reserve meeting.

forex-forecast-usdjpy-14-12-2016

Indicators do not send strong signals. The MACD histogram is located near the 0 mark.

Stochastic Oscillator has fixed in the neutral 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: 114.750
Resistance levels: 115.400, 116.,000

If the statistical data on the US economy is weak, the USD/JPY quotations may decrease to around 114.250.

An alternative would be an increase of USD/JPY to a local resistance level of 115.750.