Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 20 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.04378
Opening: 1.04019
Chg. % for the last day: -0.43
Day range: 1.03750 – 1.04170
52-week range: 1.0538 – 1.1616

Yesterday the EUR/USD currency pair kept the 1.04700 resistance, causing the development of aggressive sales. Trades completed with the strengthening of the US dollar by more than 40 points. At the moment, the currency is testing the support level of 1.03750.

forex-forecast-eurusd-20-12-2016

The MACD histogram has continued to decline and consolidated below the signal line, indicating sales of EUR/USD.

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

The news background on the currency market is quite calm today. At 9:00 (GMT + 2: 00) the index of producer prices in Germany will be released. In November the figure was 0.3% compared to 0.7% in October.

Trading recommendations:

Support levels: 1.03750
Resistance levels: 1.04700, 1.05350

We believe that the “bearish” moods on the EUR/USD currency pair may continue. It is better to consider selling to around 1.03500.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.24758
Opening: 1.24001
Chg. % for the last day: -0.72
Day range: 1.23700 – 1.24083
52-week range: 1.0538 – 1.1616

During yesterday’s trading on the currency pair GBP / USD was dominated by sales. Britain’s currency has lost in the price of more than 85 points. At present, the pound is trading near local support 1.23700.

forex-forecast-gpbusd-20-12-2016

The MACD histogram has moved into the negative zone and continued to decline, indicating the development of the downward trend in the GBP/USD currency pair.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also indicates a decline of GBP/USD.

The news background on the UK economy is calm today.

Trading recommendations:

Support levels: 1.23700
Resistance levels: 1.24450.

We expect a continuation of the downward trend in the GBP/USD currency pair to the level of 1.23400.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33332
Opening: 1.34090
Chg. % for the last day: +0.49
Day range: 1.33947 – 1.34184
52-week range: 1.2458 – 1.4692

Yesterday, the USD/CAD currency pair was under the influence of buyers power. The Canadian dollar weakened against the US dollar by more than 85 points. At the moment, the currency is testing the “mirror” support level of 1.34000.

forex-forecast-usdcad-20-12-2016

The MACD histogram is in the positive zone and continues to rise, indicating a growth of USD/CAD.

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

At 15:30 (GMT + 2: 00), the data on the volume of wholesale sales in Canada will be released.

Trading recommendations:

Support levels: 1.34000, 1.33250
Resistance levels: 1.34500

Our expectations were confirmed yesterday. We continue to expect the upward trend in USD/CAD. We recommend buying to around 1.34500.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 117.959
Opening: 117.099
Chg. % for the last day: -0.62
Day range: 116.964 – 118.230
52-week range: 99.08 – 123.69

The yen is under pressure because of the decision of the Bank of Japan. The regulator has left its monetary policy unchanged. At the same time, the Central Bank issued an optimistic forecast for 2017. The USD/JPY currency pair is trading near the offers zone of 118.400-118.650.

forex-forecast-usdjpy-20-12-2016

The MACD histogram has moved into the positive zone and fixed above the signal line, which indicates the development of the “bullish” moods on USD/JPY.

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

Today the important news from Japan is not expected.

Trading recommendations:

Support levels: 117.850, 117.000
Resistance levels: 118.650

Yesterday’s forecast proved to be quite accurate. We believe that the USD/JPY currency pair may reach the resistance level of 118.650. The entry point and confirmation should be looked at the smaller timeframes.