Forex forecast on February 28 for EURUSD, GBPUSD, USDCAD, USDJPY

The forecast for EUR/USD

Yesterday’s trading ended with a slight increase in the euro against the US dollar. Today a rich newsflow on the US economy is expected. The attention of the financial markets will be focused on the performance of the US President. Currently, the pair is testing the support of 1.05850.

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

Stochastic Oscillator has come out of the overbought zone, the %K line is below the %D line, indicating the “bearish” moods on the EUR/USD currency pair.

All news on the US economy:
– the publication of data on the country’s GDP (15:30 GMT + 2: 00);
– GDP deflator (15:30 GMT + 2: 00);
– balance of foreign trade (15:30 GMT + 2: 00);
– the index of business activity in Chicago (16:45 GMT + 2: 00);
– CB consumer confidence index (17:00 GMT + 2: 00);
– the performance of D. Trump (23:00 GMT + 2: 00).

Trading recommendations:

Support levels: 1.05850, 1.05300
Resistance levels: 1.06250

We expect the downward trend on the EUR/USD currency pair. The potential for movement – 1.05400-1.05300.

The forecast for GBP/USD

Yesterday, trading on the GBP/USD currency pair was very active. The pound tested several times the key support and resistance levels: 1.24000 and 1.24750, respectively. The pressure on the British currency is caused by a possible referendum in Scotland.

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 statistics from the US is positive, a drop in the GBP/USD prices may continue. The target level of movement – 1.24000-1.24750.

An alternative could be the correction on GBP/USD to the resistance level of 1.24750.

The forecast for USD/CAD

During yesterday’s trading, the aggressive buying was observed on the USD/CAD currency pair. The Canadian dollar weakened against the US dollar by more than 80 points. We expect statistics from the US.

Indicators signals are different. The MACD histogram has started to decline and is below the signal line, indicating the correction in the USD/CAD currency pair.

Stochastic Oscillator is near the oversold zone, the %K line is above the %D line, indicating the “bullish” moods on USD/CAD.

At 15:30 (GMT + 2: 00) the raw material prices index (RMPI) will be published.

Trading recommendations:

Support levels: 1.31600, 1.31200
Resistance levels: 1.32000

The previous forecast was confirmed. We expect further growth of the USD/CAD quotes. One should consider buying to the mark of 1.32250-1.32500.

The forecast for USD/JPY

Yesterday the USD/JPY currency pair kept the round level of 112.000 that caused an upward trend in the second half of the day. The correction was observed during the Asian session. At present, the yen is testing the local resistance level of 112.500.

The MACD histogram is below its signal line and continues to decline, giving a signal to sell USD/JPY.

Stochastic Oscillator has started to come out of the oversold zone, the %K line is above the %D line, indicating the growth of the USD/JPY quotes.

In Asian trading session the mixed statistics on Japan’s economy was released. In January, the volume of industrial production in the country decreased by 0.8%. At the same time, there is a retail sales increase of 1%.

Trading recommendations:

Support levels: 112.000
Resistance levels: 112.500, 113.000

If economic data from the US is weak, a downward trend in USD/JPY may develop to around 111.750.

An alternative would be an increase of the USD/JPY quotes to the local resistance of 112.850.