Chg. % for the last day: -0.77
Day range: 1.06220 – 1.06544
52-week range: 1.0366 – 1.1616
Yesterday, the demand for the US dollar has increased significantly. Fed Chairman Yellen stated that in the current year rates could rise rapidly. Support is also provided by the growth of profitability of US government bonds. Today, ECB will take a decision regarding the future of monetary policy.
The MACD histogram has consolidated 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. Currently, there are no signals.
Economic Calendar on 19.01.2017:
– the rate at the ECB deposit funds (14:45 GMT + 2: 00);
– decision on the interest rate of the ECB (14:45 GMT + 2: 00);
– a press conference of the ECB (15:30 GMT + 2: 00).
You must also pay attention to the news feed from the United States:
– the number of building permits issued (15:30 GMT + 2: 00);
– the volume of new construction (15:30 GMT + 2: 00);
– the number of initial applications for unemployment benefits (15:30 GMT + 2: 00);
– the index of manufacturing activity from the Federal Reserve Bank of Philadelphia (15:30 GMT + 2: 00).
Support levels: 1.05850
Resistance levels: 1.06500, 1.07150
Today, we recommend to reduce the risks from open positions on the EUR/USD currency pair. It is necessary to wait for the ECB’s decisions on monetary policy.
If the price consolidates above the level of 1.06900, an upward trend may develop the level of 1.07500.
An alternative may be a correction to the support level of 1.05850.
Forecast for the GBPUSD currency pair
Chg. % for the last day: -1.24
Day range: 1.22525 – 1.23234
52-week range: 1.2016 – 1.5513
During yesterday’s trading session, the pound significantly corrected with respect to the US dollar. The GBP/USD quotes falling has exceeded 125 points. Today, the power of buyers is observed. At the moment, the British currency is testing the support level of 1.23000.
The MACD histogram has started to rise and fixed above the signal line, indicating further growth of the GBP/USD currency pair.
Stochastic Oscillator is in the overbought zone, the %K line crossed the %D line. Currently, there are no signals.
The news background on the UK economy is calm today. We recommend to pay attention to statistics from the US.
Support levels: 1.23000, 1.22000
Resistance levels: 1.24150
If the GBP/USD quotation consolidates above the level of 1.23500, the “bullish” moods may develop. Potential movement is to 1.23900.
Forecast for the USDCAD currency pair
Chg. % for the last day: +1.74
Day range: 1.32520 – 1.32868
52-week range: 1.2458 – 1.4692
Yesterday the Canadian dollar significantly weakened against the US dollar. The USD/CAD quotes rose by more than 200 points. The currency reached a resistance level of 1.32800.
The MACD histogram has started to decline and fixed below the signal line, which indicates the development of the corrective movement in USD/CAD.
Stochastic Oscillator has consolidated in the neutral zone, the %K line crossed the %D line. There are no signals yet.
The news background on the economy of Canada is calm today:
– volume of foreign investments in securities (15:30 GMT + 2: 00);
– sales volume in the manufacturing sector (15:30 GMT + 2: 00).
You must also pay attention to the news feed from the USA.
Support levels: 1.32100, 1.31500
Resistance levels: 1.32800.
If economic data from the US is weak, a downward trend in USD/CAD may develop to the local support of 1.32250.
An alternative would be a further increase of the USD/CAD quotes to the level of 1.33250.
Forecast for the USDJPY currency pair
Chg. % for the last day: +1.80
Day range: 112.543 – 113.433
52-week range: 99.08 – 123.69
Yesterday, the yen fell significantly against the US dollar. The USD/JPY currency pair rose by 1.8%. At the moment, the key levels are: support – 113.900; resistance – 115.250.
The MACD histogram is in the positive zone, but below the signal line, which delivers a weak signal to buy USD/JPY.
Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals yet.
We recommend to pay attention to the publication of data on the US economy.
Support levels: 113.900, 112.750
Resistance levels: 115.250
If statistics from the US is optimistic, the growth of the USD/JPY quotations may continue to around 115.250.
An alternative could be a downward trend in the USD/JPY currency pair to the support level of 113.900.