Forex forecast on May 16 for EURUSD, GBPUSD, USDCAD, USDJPY

Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.09310
Open: 1.09748
% chg. for the last day: +0.43
Day’s range: 1.09729 – 1.10164
52 wk range: 1.0366 – 1.1616

The bullish sentiment prevails on EUR/USD. Yesterday, the euro added more than 50 points. The latest statistics from the US was quite weak, which continues to put pressure on the US currency. At the moment, EUR/USD is testing local resistance at 1.10150. The focus is on the GDP data for the euro area.

forex-forecast-eurusd-16-05-2017

The MACD histogram has fixed in the positive zone and above the signal line, which signals the further growth of EUR/USD.

Stochastic Oscillator has reached the overbought zone, the %K line crossed the %D line. There are no signals at the moment.

The news background is eventful today:
– ZEW economic sentiment index in Germany (12:00 GMT+3:00);
– data on the GDP of the eurozone (12:00 GMT+3:00);
– the balance of trade of the euro area (12:00 GMT+3:00);
– economic reports on the real estate market in the USA (15:30 GMT+3:00);
– the volume of industrial production in the US (16:15 GMT+3:00).
    
Trading recommendations

Support levels: 1.09650, 1.09200
Resistance levels: 1.10150

Our past expectations have been confirmed. We recommend waiting for the release of statistics on the economy of the eurozone.

Forecast for еру GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28823
Open: 1.28951
% chg. of the last day: +0.05
Dai’s range: 1.28918 – 1.29335
52 wk range: 1.1986 – 1.5020

Yesterday’s trading on the GBP/USD was very active. At the same time, a unidirectional trend was not observed. Investors are waiting for today’s data on inflation in Britain. At the moment, the key trading range is 1.29000-1.29300.

forex-forecast-gpbusd-16-05-2017
                               
The MACD histogram is in the positive zone and continues to rise, which indicates the growth of GBP/USD.

Stochastic Oscillator is located near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.

Economic reports from the UK:
– the consumer price index (11:30 GMT+3:00);
– Producer Procurement Price Index (11:30 GMT+3:00).
                      
Trading recommendations

Support levels: 1.29000, 1.28600
Resistance levels: 1.29300, 1.29750

If the statistics from Britain is optimistic, we recommend looking for entry points to the market to open long positions. The target movement level is 1.29750.

An alternative may be a downward trend on GBP/USD to the level of 1.28800-1.28600.

Forecast for USD/CAD

Technical indicators of the currency pair:

Prev Open: 1.36971
Open: 1.36331
% chg. for the last day: -0.63
Day’s range: 1.36064 – 1.36384
52 wk range: 1.2458 – 1.4692

Yesterday, aggressive sales were on USD/CAD. The Canadian dollar rose against the US dollar by more than 60 points. The currency tested a round level of 1.36000. Mark 1.36500 is already a “mirror” resistance. Correction in the market of “black gold” supports the Canadian dollar.

forex-forecast-usdcad-16-05-2017

The MACD histogram has fixed in the negative zone and continues to decline, which indicates a bearish sentiment on USD/CAD.

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

We recommend paying attention to the news line from the USA.
          
Trading recommendations

Support levels: 1.36000
Resistance levels: 1.36500, 1.37300

The previous forecast turned out to be quite accurate. We believe that the downward trend in USD/CAD may continue. The movement is tending potentially to 1.35750-1.35500.

Forecast for the USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.150
Open: 113.784
% chg. for the last day: +0.45
The daily range: 113.242 – 113.788
52-week range: 99.08 – 123.69

In the Asian trading session, the USD/JPY currency pair retained the resistance level of 113.750, which caused a downward trend. The yen added more than 50 points in price. The immediate support is a round-level of 113.000. The demand for safe assets is supported against the background of aggravation of geopolitical risks, as well as weak statistics from the US and China.

forex-forecast-usdjpy-16-05-2017

The MACD histogram has begun to decline and moved to the negative zone, which gives a signal to sell USD/JPY.

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

Today, the news background on the Japanese economy is calm.

Trading recommendations

Support levels: 113.000
Resistance levels: 113.750, 114.250

We expect the bearish sentiment on USD/JPY. We recommend selling. The movement is tending potentially to 113.000-112.750. When tracking the position, it is better to use a trailing stop.