Forex forecast on May 22 for EURUSD, GBPUSD, USDCAD, USDJPY

Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.11026
Open: 1.11951
% chg. of the last day: +0.94
Daily range: 1.11796 – 1.12104
52-week range: 1.0366 – 1.1616

Last week, the US dollar was under pressure amid rising political risks in Washington. During this period, the growth of the EUR/USD quotations exceeded 250 points. At the moment, the key trading range is 1.11700-1.12100. ECB President Draghi noted positive changes in the EU economy.

forex-forecast-eurusd-22-05-2017

The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.

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

There are no important economic reports from the EU and the US today. At the same time, we recommend you to pay attention to the speeches of representatives of FOMC Harker (17:00 GMT+3:00) and Kashkari (17:30 GMT+3:00).

Trading recommendations

Support levels: 1.11700, 1.11000
Resistance levels: 1.12100

If the price consolidates above the local resistance level of 1.12100, we recommend you to look for entry points to the market to open long positions. The movement is tending potentially to 1.12500-1.12750. When tracking the position, it is better to use a trailing stop.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29363
Open: 1.29963
% chg. for the last day: +0.74
Daily range: 1.29738 – 1.30251
52-week range: 1.1986 – 1.5020

The last trading session, the pound is in lateral movement with a fairly wide trading range. At the moment, the technical pattern is ambiguous. Key support and resistance levels can be identified: 1.29750 and 1.30400, respectively. The market is waiting for additional drivers.

forex-forecast-gpbusd-22-05-2017
                               
The MACD histogram has begun to decline and is below the signal line, which indicates a bearish sentiment on 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.

Today, publication of important statistics on the economy of Britain is not planned.
                      
Trading recommendations

Support levels: 1.29750, 1.29300
Resistance levels: 1.30400

At the moment, we recommend you to open positions from key levels. If the GBP/USD quotes consolidate above the round level of 1.30000, it is necessary to consider purchases. The immediate goal for profit taking is 1.30400-1.30500.

Alternative option. If the price consolidates below the support level of 1.29750, we recommend looking for entry points to the market to open short positions. The movement is tending potentially to 1.29300.

Forecast for USD/CAD

Technical indicators of the currency pair:

Prev Open: 1.36035
Open: 1.35129
% chg. for the last day: -0.65
Daily range: 1.35072 – 1.35403
52-week range: 1.2458 – 1.4692

On Friday, the bearish sentiment prevailed on USD/CAD. The Canadian dollar rose against the US dollar by more than 90 points. The currency formed a local support level of 1.35100. It is supported by a positive dynamics in the market of “black gold”.

forex-forecast-usdcad-22-05-2017

Indicators point to the strength of sellers. The MACD histogram has fixed in the negative zone and continues to decline.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/CAD.

The news background on Canada’s economy is calm today.
          
Trading recommendations

Support levels: 1.35100
Resistance levels: 1.35850, 1.36500

We expect a further drop in USD/CAD. We recommend considering sales to 1.34600-1.34500.

Forecast for the USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 111.489
Open: 111.033
% chg. for the last day: -0.20
Daily range: 110.994 – 111.605
52-week range: 99.08 – 123.69

During the Asian trading session, the yen was under pressure. This is due to the publication of weak data on the trade in Japan. At the moment, USD/JPY is testing the key resistance level at 111.500. The demand for safe assets is supported by the political scandal in the United States.

forex-forecast-usdjpy-22-05-2017

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K is below the %D line, which indicates the development of the downward trend on USD/JPY.

It is necessary to pay attention to the news line from the USA.

Trading recommendations

Support levels: 110.700
Resistance levels: 111.500, 112.500

We expect the bearish sentiment on USD/JPY. We recommend looking for entry points to the market in order to open short positions. The target level of movement is 110.700-110.400.