Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 18 January, 2017

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.05988
Opening: 1.07119
Chg. % for the last day: +1.05
Day range: 1.06750 – 1.07156
52-week range: 1.0366 – 1.1616

Yesterday the US dollar continued to lose ground against the major currencies. The EUR/USD quotes growth was 1.05%. Currencies formed the local resistance of 1.07150. The participants of the financial markets are waiting for the Fed Chairman Yellen’s speech.

forex-forecast-eurusd-18-01-2017

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

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

Today we expect data on inflation in the euro area and the United States:
– the consumer price index in the euro area (12:00 GMT + 2: 00);
– the core consumer price index in the US (15:30 GMT + 2: 00).

At 22:00 (GMT + 2: 00) a press conference of the FED chairman Yellen will be held.

Trading recommendations:

Support levels: 1.06500
Resistance levels: 1.07150

If data on inflation in the euro area is positive, the EUR/USD quotes may continue to rise. The potential movement is to 1.07750.

An alternative would be a correction of EUR/USD to the level of 1.06500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.20426
Opening: 1.24041
Chg. % for the last day: +3.03
Day range: 1.23170 – 1.24137
52-week range: 1.2016 – 1.5513

Press conference of the British Prime Minister Theresa May has caused aggressive buying of GBP/USD. Yesterday, the pound rose against the US dollar by more than 3%. This is the largest increase in currency in Britain since 2008.

forex-forecast-gpbusd-18-01-2017

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

Stochastic Oscillator has consolidated near the oversold zone, the %K line crossed the %D line. There are no signals yet.

Today we expect important statistics on the labor market in Britain:
– the average level of wages, taking into account premiums (11:30 GMT + 2: 00);
– change in the number of applications for unemployment benefits (11:30 GMT + 2: 00);
– unemployment level (11:30 GMT + 2: 00).

It is also necessary to pay attention to the speech of the US Federal Reserve System head.

Trading recommendations:

Support levels: 1.23000, 1.22000
Resistance levels: 1.24150

If the data on the UK labor market is weak, the corrective movement in GBP/USD may develop to the local support of 1.22500.

An alternative would be the further growth 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: 1.31748
Opening: 1.30420
Chg. % for the last day: -1.00
Day range: 1.30384 – 1.30773
52-week range: 1.2458 – 1.4692

During yesterday’s trading session, the USD/CAD quotes drop exceeded 125 points. At the moment, the key trading range is 1.30300-1.30750. We expect a decision of the Central Bank of Canada.

forex-forecast-usdcad-18-01-2017

The MACD histogram has started to rise and fixed above the signal line, which indicates the correct development on USD/CAD.

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

All news on the Canadian economy:
– the publication of the Bank of Canada report on monetary policy (17:00 GMT + 2: 00);
– interest rate decision (17:00 GMT + 2: 00);
– speech of the Bank of Canada head (18:15 GMT + 2: 00).

Trading recommendations:

Support levels: 1.30300
Resistance levels: 1.30750, 1.31250

Yesterday’s forecast was confirmed. Today we can expect a high trading activity on the USD/CAD currency pair. It is necessary to reduce the risks while opening the position. We recommend to wait for the decision on the interest rate of the Bank of Canada. If the price consolidates below 1.30300, a downward trend in USD/CAD may develop to the level of 1.29600.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 114.183
Opening: 112.624
Chg. % for the last day: -1.37
Day range: 112.543 – 113.433
52-week range: 99.08 – 123.69

During the Asian trading session, the USD/JPY currency pair kept the local support of 112.750. The US dollar won back yesterday’s losses. At the moment, the local currency is testing the resistance level of 113.500.

forex-forecast-usdjpy-18-01-2017

Indicators signals are ambiguous. The MACD histogram has started to rise and fixed above the signal line, indicating the growth of the USD/JPY quotations.

Stochastic Oscillator has started to come out of the overbought zone, the %K line is below the %D line, indicating sales of the USD/JPY currency pair.

We recommend to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 112.750
Resistance levels: 113.900, 115.250

Our forecast was yesterday. If statistics from the US is weak, the downward trend on the USD/JPY currency pair may continue. The nearest goal for profit fixation is 112.250.

An alternative could be the growth of the USD/JPY quotations to the resistance level of 113.900.