Forex forecast on 27 February for EURUSD, GBPUSD, USDCAD, USDJPY

The forecast for EUR/USD

Technical indicators of the currency pair:

Prev. Opening: 1.05815
Opening: 1.05636
Chg. % Last day: -0.17
Day range: 1.05513 – 1.05875
52-week range: 1.0366 – 1.1616

This week, investors will be focused on the performance of D. Trump, which will take place on Tuesday, February 28th. Financial market participants expect the US president will announce the details of his “phenomenal” tax reform. At the moment the EUR/USD currency pair is testing the resistance level of 1.05850.

forex-forecast-eurusd-27-02-2017

Indicators do not send strong signals. The MACD histogram is located near the 0 mark.

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

The news background of the EU economy is calm. It is necessary to pay attention to the statistics from the US:
– basic orders for durable goods (15:30 GMT + 2: 00);
– the volume of orders for durable goods (15:30 GMT + 2: 00);
– the index of pending sales in the real estate market (17:00 GMT + 2: 00).

Also, 18:00 (GMT + 2: 00) the FOMC member Kaplan’s speech will be held.

Trading recommendations:

Support levels: 1.05300
Resistance levels: 1.05850, 1.06250

If statistics from the US is positive, be sure to consider selling EUR/USD to around 1.05300-1.05000.

An alternative would be an increase of the EUR/USD quotes to the resistance level of 1.06250.

The forecast for GBP/USD

Technical indicators of the currency pair:

Prev. Opening: 1.25538
Opening: 1.24729
Chg. % Last day: -0.69
Day range: 1.23835 – 1.24357
52-week range: 1.1986 – 1.5020

On Friday, February 24, the GBP/USD pair kept the resistance level of 1.25600, prompting aggressive selling. The pound weakened against the US dollar by more than 100 points. Today the British currency continued to lose ground. The GBP/USD quotes reached the round level of 1.24000.

forex-forecast-gpbusd-27-02-2017

The MACD histogram has consolidated in the negative zone and below its signal line, indicating the “bearish” moods on the GBP/USD currency pair.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, it gives a signal to sell GBP/USD.

Important news for the UK economy is not expected today.

Trading recommendations:

Support levels: 1.24000
Resistance levels: 1.24350, 1.24750

If economic data from the US is weak on the GBP/USD currency pair, a correction may develop to the level of 1.24500-1.24750.

An alternative would be a continuation of the downward trend on GBP/USD. The potential for movement is to 1.23500.

The forecast for USD/CAD

Technical indicators of the currency pair:

Prev. Opening: 1.31040
Opening: 1.30953
Chg. % Last day: -0.11
Day range: 1.30935 – 1.31230
52-week range: 1.2458 – 1.4692

During Friday’s trading, a significant change of the USD/CAD rate did not happen. The Canadian dollar was in a sideways movement. The currency has formed a key trading range 1.30850-1.31200.

forex-forecast-usdcad-27-02-2017

Indicators point to the development of an upward trend. The MACD histogram has started to rise and fixed above the signal line.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.

The publication of important statistics on Canada’s economy is not planned.

Trading recommendations:

Support levels: 1.30850
Resistance levels: 1.31200, 1.31600

We expect “bullish” moods on the USD/CAD currency pair USD / CAD. One should consider buying to the mark of 1.31600-1.31750.

The forecast for USD/JPY

Technical indicators of the currency pair:

Prev. Opening: 112,609
Opening: 112,133
Chg. % Last day: -0.36
Day Range: 111,912 – 112,343
52-week range: 99.08 – 123.69

During Friday’s trading sales prevailed on the USD/JPY currency pair. The yen strengthened against the US dollar by more than 50 points. The currency hit 112.000. Trading in the Asian session was quiet. We expect statistics from the US.

forex-forecast-usdjpy-27-02-2017

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

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

It is necessary to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 112.000
Resistance levels: 112.500, 113.000

The previous forecast was confirmed. We expect a correction in the USD/JPY currency pair. If the price consolidates above the local resistance 112.500, be sure to consider buying USD/JPY. The target level of movement – 112.900-113.000.