Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 19 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.04193
Opening: 1.04378
Chg. % for the last day: +0.36
Day range: 1.04350 – 1.04790
52-week range: 1.0538 – 1.1616

During the Asian trading session, a significant change of the euro did not occur. Trading activity on the EUR/USD currency pair fell. The US dollar os correcting against the major currencies due to profit-taking by market participants. At the moment, the currency is testing the resistance level of 1.04700.

forex-forecast-eurusd-19-12-2016

Indicators signals are ambiguous. MACD histogram has started to rise 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 the development of the downward trend on the EUR/USD currency pair.

Economic Calendar on 12.19.2016:
– IFO business climate index in Germany (11:00 GMT + 2: 00);
– the level of wages in the euro area (12:00 GMT + 2: 00);
– a composite index of business activity in the US from Markit (16:45 GMT + 2: 00);
– the index of business activity in the US services sector (16:45 GMT + 2: 00);
– Fed Chairman Yellen’s speech (20:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.03750
Resistance levels: 1.04700, 1.05350

We expect the upward trend on the EUR/USD currency pair. It is better to consider buying to around 1.05200.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.24145
Opening: 1.24758
Chg. % for the last day: +0.63
Day range: 1.24666 – 1.25020
52-week range: 1.0538 – 1.1616

On Friday, purcahses prevailed on the GBP/USD currency pair. Quotations rose by more than 75 points. At the moment, the local currency has found support at 1.24700.

forex-forecast-gpbusd-19-12-2016

The MACD histogram continues to rise and moves into the positive zone, indicating purchases on GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also indicates an increase of GBP/USD.

Important news from the UK is not released today.

Trading recommendations:

Support levels: 1.23900
Resistance levels: 1.25200, 1.25750.

We believe that the correction in the GBP/USD currency pair may continue. We recommend buying to around 1.25300.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33345
Opening: 1.33332
Chg. % for the last day: 0.00
Day range: 1.33170 – 1.33570
52-week range: 1.2458 – 1.4692

On Friday, there was a high trading activity on the USD/CAD currency pair. However, there was no unidirectional movement. The currency continues to test the support level of 1.33250.

forex-forecast-usdcad-19-12-2016

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

Stochastic Oscillator has reached the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/CAD.

The news background on the economy of Canada is calm.

Trading recommendations:

Support levels: 1.33250, 1.32500
Resistance levels: 1.34000

We expect growth of the USD/CAD currency pair to the level of 1.33900. The entry point into the market and confirmation should be sought for on the smaller timeframes.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 118.161
Opening: 117.959
Chg. % for the last day: -0.15
Day range: 116.964 – 117.979
52-week range: 99.08 – 123.69

During the Asian trading session, there was observed a correction in the USD/JPY currency pair. The yen rose in price by more than 90 points. At the moment, the currency is being traded near local offer zone of 117.500-117.850.

forex-forecast-usdjpy-19-12-2016

The indicators show an ambiguous image. The MACD histogram has fixed in the negative zone and below its signal line, indicating the decline of USD/JPY.

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

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

Trading recommendations:

Support levels: 117.000
Resistance levels: 117.850 118.650

We believe that the correction in the USD/JPY currency pair may continue. The price may reach 116.800.