Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 31 January, 2017

Technical showings of the currency pair:

Pre-opening: 1.07207
Opening: 1.06961
Chg. % for the last day: -0.21
Day range: 1.06845 – 1.07173
52-week range: 1.0366 – 1.1616

Yesterday, there was a high volatility on the EUR/USD currency pair. In the afternoon, the currency kept the key support level of 1.06350, prompting aggressive buying. At the moment, the euro won back most of the yesterday’s losses. The participants of the currency market are waiting for statistics from the EU.

forex-forecast-eurusd-31-01-2017

The MACD histogram has started tp rise and moved into the positive zone, indicating an increase of EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates to purchases of EUR/USD.

Today, we are waiting for important economic data from the EU:
– ECB President Draghi’s speech(10:00 GMT + 2: 00);
– changes in the number of unemployed in Germany (10:55 GMT + 2: 00);
– Eurozone consumer price index (12:00 GMT + 2: 00);
– Eurozone GDP (12:00 GMT + 2: 00);
– the level unemployment in Eurozone (12:00 GMT + 2: 00).

Also, 17:00 (GMT + 2: 00), the data on the CB consumer confidence in US.

Trading recommendations:

Support levels: 1.06350
Resistance levels: 1.07150, 1.07550

If EU economic statistics is positive, the growth of the EUR/USD currency pair may continue to the level of 1.07750.

An alternative could be a downward trend on EUR/USD to the local support of 1.06600.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.25868
Opening: 1.24863
Chg. % for the last day: -0.87
Day range: 1.24760 – 1.25183
52-week range: 1.1986 – 1.5020

Yesterday, the sales prevailed on the GBP/USD currency pair. The GBP/USD quotations decrease exceeded 100 points. During the Asian trading session, a significant change of the pound did not occur.

forex-forecast-gpbusd-31-01-2017

Indicators do not send strong signals. The MACD histogram is in the negative zone, but above the signal line, which delivers a weak signal to sell GBP/USD.

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

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

Trading recommendations:

Support levels: 1.24150
Resistance levels: 1.25450, 1.26600

If statistics from the US is weak, an upward trend on GBP/USD may develop. The potential movement is up to 1.25750.

An alternative would be a continuation of the correction on the GBP/USD currency pair to the level of 1.24150.

Forecast for the USDCAD currency pair

Technical showings of the currency pair:

Pre-opening: 1.31324
Opening: 1.31185
Chg. % for the last day: -0.11
Day range: 1.30896 – 1.31208
52-week range: 1.2458 – 1.4692

Yesterday, trading on the USD/CAD currency pair was quite active. At the same time, a significant change of rate did not happen. The Canadian dollar rose slightly against the US dollar. At the moment, the currency is testing the mark of 1.31100.

forex-forecast-usdcad-31-01-2017

Indicators signals are different. The MACD histogram is in the negative zone and below its signal line, indicating a drop of the USD/CAD quotes.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the development of the “bullish” moods on USD/CAD.

The news background on the Canadian economy:
– data on the country’s GDP (15:30 GMT + 2: 00);
– the index of commodity prices (RMPI) (15:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.31100, 1.30550
Resistance levels: 1.31750

We expect the downward trend on the USD/CAD currency pair. The potential movement is up to 1.30600.

Forecast for the USDJPY currency pair

Technical showings of the currency pair:

Pre-opening: 114.736
Opening: 113.741
Chg. % for the last day: -0.77
Day range: 113.235 – 113.908
52-week range: 99.08 – 123.69

At the moment, there is growing demand for secure yen. This is due to the migration policy of D. Trump. Today the Bank of Japan left monetary policy unchanged. The market responded calmly to this event.

forex-forecast-usdjpy-31-01-2017

The MACD histogram has consolidated 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 is above the %D line, indicating the growth of the USD/JPY quotations.

It is necessary to pay attention to the statistical data from the US.

Trading recommendations:

Support levels: 113.450
Resistance levels: 114.250, 114.850

The last forecast was confirmed. We continue to expect a “bearish” moods on the USD/JPY currency pair. If the price consolidates below 113.650, be sure to consider selling to the local support of 113.100.