Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 22 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.03882
Opening: 1.04240
Chg. % for the last day: +0.37
Day range: 1.04223 – 1.04561
52-week range: 1.0538 – 1.1616

Yesterday, there was a correction in the EUR/USD currency pair. The euro rose against the US dollar by more than 40 points. At the moment, the currency is being traded near the resistance level of 1.04700. We expect news from the US.

forex-forecast-eurusd-22-12-2016

The MACD histogram has consolidated in the positive zone and above its signal line, indicating a continuation of the corrective movement on EUR/USD.

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

Economic Calendar on 22/12/2016:
– the ECB monthly report (11:00 GMT + 2: 00);
– basic orders for durable goods in the US (15:30 GMT + 2: 00);
– revision of GDP for the third quarter in the US (15:30 GMT + 2: 00);
– the GDP deflator in the US (15:30 GMT + 2: 00);
– the number of initial claims for unemployment benefits in the US (15:30 GMT + 2: 00);
– data on private consumption expenditure in the US (17:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.03750
Resistance levels: 1.04700, 1.05350

If the statistical data from the US is optimistic, the EUR/USD quotes may reduce to around 1.03800.

An alternative could be a correction of the EUR/USD currency pair to the local resistance of 1.05000.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.23616
Opening: 1.23527
Chg. % for the last day: -0.11
Day range: 1.23429 – 1.23781
52-week range: 1.0538 – 1.1616

Trading in the Asian session was quite calm. Significant changes in the pound against the US dollar did not happen. Currently, the GBP/USD currency pair is being traded in a range of 1.23200-1.23850.

forex-forecast-gpbusd-22-12-2016

MACD histogram has started to rise and moved into the positive zone, which indicates the growth of the GBP/USD currency pair.

Stochastic Oscillator has fixed in the neutral zone, the %K line crossed the %D line. Currently, there are no signals.

Today, we are waiting for important economic news from the UK:
– current account positions balance (11:30 GMT + 2: 00);
– data on the country’s GDP (11:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.23200
Resistance levels: 1.23850, 1.24450

If the economic data from the UK is positive, the GBP/USD currency pair may reach 1.24400.

An alternative would be the GBP/USD quotes reduction to the support level of 1.23000.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.33663
Opening: 1.34118
Chg. % for the last day: +0.33
Day range: 1.34088 – 1.34472
52-week range: 1.2458 – 1.4692

During yesterday’s trading session, the Canadian dollar weakened against the US dollar (by more than 50 points), due to optimistic data from the US housing market. The USD/CAD currency pair found resistance at 1.34500.

forex-forecast-usdcad-22-12-2016

The MACD histogram has consolidated in the positive zone and continued to rise, which means purchases of USD/CAD.

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

News feed from Canada:
– Core Consumer Price Index (15:30 GMT + 2: 00);
– Base index of retail sales (15:30 GMT + 2: 00);
– retail sales volume (15:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.34000, 1.33250
Resistance levels: 1.34500

If statistics from Canada is weak, the growth of the USD/CAD currency pair may continue to the level of 1.34900.

An alternative may be a correction to the local support of 1.33750.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 117.829
Opening: 117.569
Chg. % for the last day: -0.21
Day range: 117.390 – 117.753
52-week range: 99.08 – 123.69

During the Asian trading session, a significant change of the USD/JPY rate did not happen. The yen continues to test the resistance level of 117.850. The attention of participants of the currency market is given to the news feed on the US economy.

forex-forecast-usdjpy-22-12-2016

The MACD histogram does not give strong signals. The indicator has consolidated near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating sales 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

The previous forecast was quite accurate. If economic data from the US is positive, the USD/JPY quotes can reach 118.400.

An alternative would be a correction of USD/JPY to around 117.000.