Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 16 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.05321
Opening: 1.04139
Chg. % for the last day: -1.16
Day range: 1.04040 – 1.04560
52-week range: 1.0538 – 1.1616

Yesterday the US dollar rally continued. The euro has lost more than 1% in value. The dollar is supported by optimistic data on the US economy. At the moment, there can be marked key support and resistance levels: 1.03750 and 1.04700.

forex-forecast-eurusd-16-12-2016

MACD histogram is in the negative zone, but above the signal line, which delivers a weak signal to sell EUR/USD.

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

Today, we are waiting for important news on the EU and the US economy:
– Eurozone consumer price index (12:00 GMT + 2: 00);
– the trade balance in the Eurozone (12:00 GMT + 2: 00);
– the number of the US building permits (15:30 GMT + 2: 00);
– The volume of new homes construction in the US (15:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.03750
Resistance levels: 1.04700, 1.05350

Our expectations were confirmed yesterday. If statistics from the EU is weak, the EUR/USD quotation may continue to fall to the level of 1.03500.

An alternative may be a correction to the local resistance 1.05350.

We also recommend to pay attention to the US news.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.25652
Opening: 1.24145
Chg. % for the last day: -1.16
Day range: 1.23815 – 1.24501
52-week range: 1.0538 – 1.1616

Yesterday, the GBP/USD currency pair was under influence of “bearish” moods. The pound weakened against the US dollar by more than 150 points. The currency has formed the local support level of 1.23900.

forex-forecast-gpbusd-16-12-2016

The MACD histogram is in the negative zone but above the signal line, which delivers a weak signal to sell GBP/USD.

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

At 13:00 (GMT + 2: 00), the data on the index of industrial orders in Britain.

Trading recommendations:

Support levels: 1.23900
Resistance levels: 1.25200

We expect a continuation of the downward trend in the GBP/USD currency pair. We would recommend selling to around 1.23850.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32822
Opening: 1.33345
Chg. % for the last day: +0.41
Day range: 1.33170 – 1.33510
52-week range: 1.2458 – 1.4692

Yesterday, the growth of the USD/CAD currency pair continued. Quotations rose by more than 60 points. At the moment, the currency is being traded near the local support level of 1.33250.

forex-forecast-usdcad-16-12-2016

Indicators signals are ambiguous. MACD histogram has started to decline and fixed below the signal line, which indicates the development of the correction in USD/CAD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which means purchases of USD/CAD.

Important news for Canada’s economy is not expected today.

Trading recommendations:

Support levels: 1.33250, 1.32500
Resistance levels: 1.34000

If statistics from the US is positive, the USD/CAD currency pair may grow to the level of 1.34250.

An alternative would be the USD/CAD quotes reduction to the local support of 1.32750.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 117.017
Opening: 118.161
Chg. % for the last day: +0.96
Day range: 117.954 – 118.423
52-week range: 99.08 – 123.69

Yesterday, the upward trend in the USD/JPY currency pair continued. The yen remained under pressure after the Fed’s decision. The currency has formed a local resistance level of 118.650. We expect the statistical data from the US.

forex-forecast-usdjpy-16-12-2016

The MACD histogram is in the positive zone, but below the signal line, indicating the correction in the USD/JPY currency pair.

Stochastic Oscillator has consolidated in the neutral zone, the %K line is above the %D line, which indicates a further increase in USD / JPY.

It is necessary to pay attention to the news feed from the USA.

Trading recommendations:

Support levels: 117.850, 117.000
Resistance levels: 116.650

Past recommendations were confirmed. If US economic statistics is weak, the corrective movement in the USD/JPY currency pair may develop to the local support of 117.500.

An alternative would be the further growth of the USD/JPY quotations to around 119.00.