Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 15 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.06234
Opening: 1.05321
Chg. % for the last day: -0.86
Day range: 1.04684 – 1.05402
52-week range: 1.0538 – 1.1616

Yesterday, the Federal Reserve System raised its key interest rate to 0.50-0.75%. During 2017 the regulator intends to increase the rate of three times. The decision of the Central Bank of the United States dollar strengthened significantly against other major currencies. The EUR/USD quotes fell by more than 100 points. At the moment, the currency has found support at 1.04700.

forex-forecast-eurusd-15-12-2016

Indicators point to sellers’ power. The MACD histogram has fixed in the negative zone and is below the signal line.

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

News background:
– the index of business activity in the manufacturing sector in Germany (10:30 GMT + 2: 00);
– the index of business activity in the manufacturing sector of the euro zone (11:00 GMT + 2: 00);
– Core consumer price index in the US (15:30 GMT + 2: 00);
– the number of initial claims for benefits for unemployment in the US (15:30 GMT + 2: 00);
– the index of manufacturing activity from the Federal Reserve Bank of Philadelphia (15:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.04700
Resistance levels: 1.05350, 1.05900

We believe that the EUR/USD currency pair may continue to fall. We recommend to consider selling to around 1.04250.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.26581
Opening: 1.25642
Chg. % for the last day: -0.73
Day range: 1.25088 – 1.25675
52-week range: 1.2016 – 1.5513

Yesterday, there was aggressive selling of the GBP/USD currency pair. Quotes fell by more than 0.70%. Pressure on the pound is caused by a decision of the US Federal Reserve. Today the attention of the participants of the currency market aimed at meeting the Bank of England.

forex-forecast-gpbusd-15-12-2016

The MACD histogram has fixed in the negative zone and continued to decline, indicating the further reduction of GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is beginning to cross the %D line. There are no signals yet.

The economic calendar for the UK economy:
– base index of retail sales (11:30 GMT + 2: 00);
– retail sales volume (11:30 GMT + 2: 00);
– Bank of England decision on interest rates (14:00 GMT + 2: 00).

It is necessary to pay attention to the statistics from the US.

Trading recommendations:

Support levels: 1.25200
Resistance levels: 1.25800, 1.26450

Today, we recommend to reduce the risks while opening positions. We should expect an increased trading activity on the GBP/USD currency pair. The dynamics of the pound will depend on the decision of the Central Bank. If the statistical data on the British economy is positive, then a correction in GBP/USD may develop to the level of 1.25800.

An alternative could be a further reduction of the GBP/USD quotations to the level of 1.24500.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31303
Opening: 1.32822
Chg. % for the last day: +1.16
Day range: 1.32662 – 1.33235
52-week range: 1.2458 – 1.4692

During yesterday’s trading session the growth of the USD/CADD quotes exceeded 1%. The Federal Reserve System decision significantly strengthened the position of the US dollar against the Canadian dollar. At the moment, the currency found resistance at 1.33250.

forex-forecast-usdcad-15-12-2016

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

Stochastic Oscillator has fixed in the neutral zone, the %K line crossed the %D line. There are no signals yet.

At 18:15 (GMT + 2: 00) the speech of the Bank of Canada’s runners will be held.

Trading recommendations:

Support levels: 1.32500
Resistance levels: 1.33250

We believe that the correction in USD/CAD is possible. If the price fixes below 1.32800, be sure to consider selling to a local support of 1.32500-1.32400.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 115.180
Opening: 117.017
Chg. % for the last day: +1.61
Day range: 116.995 – 117.863
52-week range: 99.08 – 123.69

Yesterday, the yen has weakened against the US dollar. The growth of the USD/JPY quotations has exceeded 200 points. At the moment, the currency is testing the local resistance of 117.850.

forex-forecast-usdjpy-15-12-2016

The MACD histogram is in the positive zone and above its signal line, indicating the increase of USD/JPY.

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

We recommend to pay attention to the news feed from the US.

Trading recommendations:

Support levels: 117.000, 116.000
Resistance levels: 117.850

We expect a continuation of the “bullish” moods on the USD/JPY currency pair. We recommend consider buying the USD/JPY after the break and retest the resistance level of 117.850.