Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 29 December, 2016

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.04544
Opening: 1.04134
Chg. % for the last day: -0.43
Day range: 1.04086 – 1.04648
52-week range: 1.0366 – 1.1616

During the Asian session session, the euro won back a large part of yesterday’s losses. The EUR/USD currency pair reached 61.8-78.6% of the correctional area. The US dollar is under pressure against the background of weak statistics on the real estate market and a decrease of government bond yields.

forex-forecast-eurusd-29-12-2016

Indicators signals are ambiguoug. The MACD histogram has started to rise and moved into the positive zone, which indicates a further increase of EUR/USD.

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

The news background on the US economy:
– balance of foreign trade (15:30 GMT + 2: 00);
– the number of initial claims for unemployment benefits (15:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.04350, 1.03750
Resistance levels: 1.04700

If the price consolidates below 1.04400, be sure to consider selling of EUR/USD. Potential movement is to 1.04050.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.22622
Opening: 1.22238
Chg. % for the last day: -0.37
Day range: 1.22091 – 1.22672
52-week range: 1.2016 – 1.5513

During the Asian trading session, the power of buyers was observed on the GBP/USD currency pair. The quotations growth exceeded 40 points. The demand for the pound is supported due to optimistic data on the index of Nationwide house prices. At the moment, the currency is testing the “mirror” resistance level of 1.22650.

forex-forecast-gbpusd-29-12-2016

MACD histogram has started to rise and fixed above the signal line, indicating the growth of GBP/USD.

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

It is necessary to pay attention to the statistics from the US.

Trading recommendations:

Support levels: 1.21100
Resistance levels: 1.22650, 1.23400

We expect the downward trend in the GBP/USD currency pair to the level of 1.22250.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.35775
Opening: 1.35598
Chg. % for the last day: -0.10
Day range: 1.35076 – 1.35608
52-week range: 1.2458 – 1.4692

Yesterday, there was no unidirectional movement on the USD/CAD currency pair. The US dollar lost a bit in price. Today, the demand for the Canadian dollar has increased significantly. At the moment, a drop in the USD/CAD quotes has exceeded 50 points.

forex-forecast-usdcad-29-12-2016

The MACD histogram is in the negative zone and below its signal line, indicating sales of USD/CAD .

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

Important news from Canada is not expected today.

Trading recommendations:

Support levels: 1.34750
Resistance levels: 1.35450, 1.35850

We believe that the USD/CAD currency pair may continue to decline. One should consider selling to around 1.34800.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 117.396
Opening: 117.201
Chg. % for the last day: -0.14
Day range: 116.226 – 117.220
52-week range: 99.08 – 123.69

The yen started to recover. During the Asian session the Japanese currency rose in price by more than 90 points. At the moment, the local support is the level of 116.350.

forex-forecast-usdjpy-29-12-2016

Indicators signals are ambiguous. The MACD histogram is in the negative zone and below the signal line, which indicates the development of the “bearish” moods on USD/JPY.

Stochastic Oscillator has come out of the oversold zone, the %K line is above the %D line, which means purchaseson USD/JPY.

We recommend to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 116.350
Resistance levels: 117.000, 117.450

We believe that the USD/JPY quotations may continue to decline. If the price consolidates below 116.450, you should consider selling. Potential movement is to 116.100.