Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 23 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.04240
Opening: 1.04359
Chg. % for the last day: +0.12
Day range: 1.04329 – 1.04530
52-week range: 1.0538 – 1.1616

Yesterday, there was a high trading activity on the EUR/USD currency pair. This is due to the release of important statistics from the US. The growth of GDP for the third quarter was revised up to 3.5%. Market expectations were at 3.3%. The EUR/USD currency pair kept the resistance of 1.04700.

forex-forecast-eurusd-23-12-2016

The MACD histogram does not give strong signals. The indicator is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating the decline of EUR/USD.

All news on the US economy:
– the index of consumers’ expectations and sentiments from the University of Michigan (17:00 GMT + 2: 00);
– new home sales (17:00 GMT + 2: 00);

Trading recommendations:

Support levels: 1.03750
Resistance levels: 1.04700, 1.05350

We expect a “bearish” moods on the EUR/USD currency pair. We recommend selling to around 1.04050.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.23527
Opening: 1.22811
Chg. % for the last day: -0.57
Day range: 1.22571 – 1.22970
52-week range: 1.0538 – 1.1616

Yesterday, the sales prevailed on the GBP/USD currency pair. The pound lost in price of more than 70 points. At the moment, the currency has found support at 1.22650.

forex-forecast-gpbusd-23-12-2016

The MACD histogram has consolidated in the negative zone and continued to decline, indicating sales of GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also points to the development of the downward trend in the GBP/USD currency pair.

The news background for the UK economy:
– business investment (11:30 GMT + 2: 00);
– publication of data on the country’s GDP (11:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.22650
Resistance levels: 1.23400, 1.24450

We believe that the GBP/USD quotation may continue to fall to the level of 1.22250. We recommend to seek for entry points to open short positions.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.34118
Opening: 1.34823
Chg. % for the last day: +0.52
Day range: 1.34762 – 1.35005
52-week range: 1.2458 – 1.4692

During yesterday’s trading session, the aggressive buying of the USD/CAD currency pair was observed. The Canadian dollar weakened against the US dollar by more than 80 points. The pressure was caused by weak data on inflation in Canada.

forex-forecast-usdcad-23-12-2016

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

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

Today we expect an important statistics from Canada. At 15:30 (GMT + 2: 00), the data on the GDP of the country will be released.

Trading recommendations:

Support levels: 1.34450, 1.34000
Resistance levels: 1.35150

We expect further growth of the USD/CAD quotes to the level of 1.35400.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 117.569
Opening: 117.553
Chg. % for the last day: -0.01
Day range: 117.287 – 117.613
52-week range: 99.08 – 123.69

The last trading session there was no unidirectional movement on the USD/JPY currency pair. The yen is being traded in a flat. We expect the statistical data on the US economy.

forex-forecast-usdjpy-23-12-2016

The MACD histogram is in the negative zone and continued to decline, indicating sales of USD/JPY.

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

It is necessary to pay attention to the news feed from the US.

Trading recommendations:

Support levels: 117.000
Resistance levels: 117.850, 118.650

If the statistical data on the US economy is weak, the USD/JPY quotes could reach 116.750.

An alternative would be an increase of the USD/JPY currency pair to the local resistance of 117,850.