Forecast for the EUR/USD currency pair
Prev Opening: 1.06077
Chg. % Last day: +1.24
Day range: 1.07147 – 1.07461
52-week range: 1.0366 – 1.1616
Yesterday, the Fed raised interest rate by 25 basis points. At the same time, the US dollar weakened against major world currencies. Earlier, we wrote that a possible increase in rates is already in the price. The US currency was under pressure, as Yellen’s rhetoric was not strong and aggressive enough. The EUR/USD currency pair found resistance at 1.07450.
The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator has fixed near oversold zone, the %K line crossed the %D line. There are no signals yet.
Economic calendar on 03/16/2017:
– the consumer price index in the Eurozone (12:00 GMT+2:00);
– the number of building permits in the US (14:30 GMT+2:00);
– the volume of new homes construction in the US (14:30 GMT+2:00);
– the number of initial claims for unemployment benefits in the US (14:30 GMT+2:00);
– an index of manufacturing activity from the Federal Reserve Bank of Philadelphia
– the number of vacancies in the JOLTS labor market (16:00 GMT+2:00).
Support levels: 1.06750, 1.06150
Resistance levels: 1.07450
At the moment, the EUR/USD currency pair has an ambiguous technical pattern. One should to seek entry points on smaller timeframes.
If data on inflation in the Eurozone is positive, the upward trend in the EUR/USD may continue. Potential for movement to the round level is 1.08000.
An alternative would be the correction of the EUR/USD currency pair to the level of 1.06750-1.06500.
The forecast for GBP/USD
Prev. Opening: 1.21548
Chg. % Last day: +1.14
Day range: 1.22568 – 1.22962
52-week range: 1.1986 – 1.5020
Yesterday, aggressive buying was observed on the GBP/USD currency pair. The growth of quotes exceeded 1%. The pound was supported by quite strong data on the labor market in Britain. Today the attention is focused on meeting of the Bank of England.
The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals yet.
News background on the UK economy:
– the total volume of the BoE QE program (14:00 GMT+2:00);
– the decision on the interest rate of the Bank of England (14:00 GMT+2:00);
– minutes of the Monetary Policy Committee meeting (14:00 GMT+2:00).
Support levels: 1.22500, 1.22000
Resistance levels: 1.23000
Today, it is necessary to reduce risks when opening positions on the GBP/USD currency pair. We recommend waiting for the Bank of England decision regarding further monetary policy.
If the price is fixed above 1.23000, further growth of the GBP/USD quotes to the local resistance of 1.23500 is possible.
If the price overcomes the support level of 1.22500, the correction to the level of 1.22000 may develop on the GBP/USD currency pair.
The Forecast for USD/CAD
Chg. % for the last day: -1.31
Day range: 1.32761 – 1.33207
52-week range: 1.2458 – 1.4692
During yesterday’s trading, “bearish” moods prevailed on the USD/CAD currency pair. The Canadian dollar rose against the US dollar by more than 175 points. The currency found support at the level of 1.32850. At the moment, the technical pattern indicates the development of correctional movement.
The MACD histogram has started to rise and fixed above the signal line, indicating growth of the USD/CAD quotes.
Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/CAD.
At 14:30 (GMT+2:00) the data on the volume of foreign investment in Canadian securities will be released.
Support levels: 1.32850
Resistance levels: 1.33350, 1.34200
We expect the correction on the USD/CAD currency pair. One should consider purchases to the level of 1.33500-1.33800.
The forecast for USD/JPY
Prev. Opening: 114.733
Chg. % Last day: -1.19
Day Range: 112.902 – 113.545
52-week range: 99.08 – 123.69
Yesterday, the Japanese currency strengthened significantly against the US dollar. Drop in the USD/JPY quotes exceeded 125 points. In the Asian trading session the USD/JPY tested several times the support level of 113.20. The currency kept this mark. In the near future, we do not exclude the correction of USD/JPY.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating a “bullish” moods on the USD/JPY currency pair.
Today, the Bank of Japan kept its monetary policy at the same level.
Support levels: 113.200
Resistance levels: 113.700, 114.500
We expect correction of the USD/JPY currency pair. One should to seek entry points for opening long positions. The potential for movement – 113.700-114.000.