Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 25 January, 2017

Technical showings of the currency pair:

Pre-opening: 1.07651
Opening: 1.07303
Chg. % for the last day: -0.32
Day range: 1.07106 – 1.07376
52-week range: 1.0366 – 1.1616

Yesterday, there was a high trading activity on the EUR/USD currency pair. However, there was no unidirectional movement. The trading ended with a slight strengthening of the US dollar. At the moment, the currency is testing the support level of 1.07150.

forex-forecast-eurusd-25-01-2017

The MACD histogram has started to decline and moved into the negative zone, which indicates the development of corrective movement in EUR/USD.

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

The news background is calm. At 11:00 (GMT + 2: 00) the index of business climate of IFO in Germany will be released.

Trading recommendations:

Support levels: 1.07150, 1.06500
Resistance levels: 1.07550

If the price consolidates below 1.07150, a correction in EUR/USD may develop to the local support of 1.06750.

An alternative would be a further increase of the EUR/USD currency pair to the level of 1.07750.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.25345
Opening: 1.25192
Chg. % for the last day: -0.11
Day range: 1.24904 – 1.25422
52-week range: 1.2016 – 1.5513

During yesterday’s trading session, the GBP/USD currency pair showed a variety of trends. Significant changes of the pound did not occurr. The currency was traded in a range of 1.24150-1.25450.

forex-forecast-gbpusd-25-01-2017

Indicators do not send strong signals. The MACD histogram has started to decline and fixed below the signal line, indicating sales of GBP/USD.

Stochastic Oscillator is near the oversold zone, the %K line is above the %D line, indicating the growth of the GBP/USD quotations.

At 13:00 (GMT + 2: 00), the data on the index of industrial orders in the UK will be released.

Trading recommendations:

Support levels: 1.24700, 1.24150
Resistance levels: 1.25450

If the price overcomes the resistance level of 1.25450, the upward trend in the GBP/USD currency pair may continue. The potential movement is 1.25900-1.26000.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.32376
Opening: 1.31585
Chg. % for the last day: -0.59
Day range: 1.31210 – 1.31639
52-week range: 1.2458 – 1.4692

Yesterday, the reversal pattern of technical analysis – “Head and Shoulders” – found application in practice. The Canadian dollar rose against the US dollar by more than 75 points. USD/CAD has found support at 1.31100.

forex-forecast-usdcad-25-01-2017

The MACD histogram as consolidated in the negative zone, but above the signal line, which delivers a weak signal to sell USD/CAD.

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

Important news from Canada is not expected today.

Trading recommendations:

Support levels: 1.31100
Resistance levels: 1.32100, 1.32800.

Our expectations were confirmed yesterday. At the moment, we expect a correction in the USD/CAD currency pair. If the price consolidates above the level of 1.31700, be sure to consider the purchase of USD/CAD. The potential for movement is 1.32100-1.32500.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 112.701
Opening: 113.775
Chg. % for the last day: +0.98
Day range: 113.373 – 113.986
52-week range: 99.08 – 123.69

Yesterday, there was a correction in the USD/JPY currency pair. The growth of the USD/JPY quotations exceeded 100 points. The currency reached the resistance level of 113.900. Today, demand for yen has increased significantly. This is due to the release of positive statistics on the Japanese economy.

forex-forecast-usdjpy-25-01-2017

Indicators do not send strong signals. The MACD histogram is in the positive zone, but below the signal line.

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

In December, the volume of Japanese exports increased by 5.4%. Market expectations were at 1.2%.

Trading recommendations:

Support levels: 112.750
Resistance levels: 113.900, 114.500

If the price consolidates below the 113.450 local support level, we recommend to consider the sale of USD/JPY. The nearest goal for profit is 113.000-112.750.