Forex forecast on May 24 for EURUSD, GBPUSD, USDCAD, USDJPY

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.12366
Open: 1.11827
% chg. for the last day: -0.49
Day’s range: 1.11702 – 1.11919
52 wk range: 1.0366 – 1.1616

Yesterday, the euro held the resistance level of 1.12600, which caused a correction movement. The EUR/USD quotes fell by more than 50 points. The key trading range is still 1.11600-1.12600. We are waiting for the press conference of the head of the ECB and the publication of the FOMC protocols.

forex-forecast-24-05-2017

News background on 2017.05.24:
– speech by the head of the ECB Draghi (15:45 GMT+3:00);
– Sales in the secondary housing market in the US (17:00 GMT+3:00);
– publication of the FOMC protocols (21:00 GMT+3:00).
                                                                                                                                                                                                                                        

The EUR/USD quotes have fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is in the negative zone and continues to decline, which indicates a correction of the EUR/USD currency pair.

Stochastic Oscillator is located near the overselling zone, the %K line is above the %D line, which signals to buy EUR/USD.

Trading recommendations
 
Support levels: 1.11600, 1.11000
Resistance levels: 1.12600

At the moment, the technical pattern is ambiguous. We recommend you to open positions from key levels.

If the price consolidates below the support level 1.11600, you need to look for entry points to the market in order to open short positions. The immediate goal for profit taking is the round level of 1.11000.

Alternative option. If the price overcomes the resistance level 1.12600, further growth of the EUR/USD currency pair is possible. The target movement level is 1.13000.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29994
Open: 1.29591
% chg. for the last day: -0.29
The daily range: 1.29547 – 1.29831
52-week range: 1.1986 – 1.5020

During yesterday’s trading on the GBP/USD there was a high trading activity. At the same time, there was no unidirectional trend. The trading ended with a slight weakening of the British currency. At the moment, the pound is being traded near the local demand zone of 1.29550-1.29700. The nearest resistance is at the round level of 1.30000. The market is waiting for additional drivers.

forex-forecast-gbpusd-24-05-2017

There are no important economic reports from the UK today. It is necessary to pay attention to the news line from the USA.
                       
                               
Indicators do not send accurate. The price is between 50 MA and 200 MA.

The MACD histogram has begun to rise and is above the signal line, indicating a bullish sentiment on GBP/USD.

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

Trading recommendations

Support levels: 1.29700, 1.29000
Resistance levels: 1.30000, 1.30400

We recommend waiting for the publication of economic reports from the United States.

If the price consolidates below the level of 1.29550, the bearish sentiment may prevail on the GBP/USD currency pair. The movement is tending potentially to the round level is 1.29000.

Alternative option. If the price overcomes the resistance level of 1.30000, it is necessary to consider buying GBP/USD. The immediate goal for profit taking is 1.30400-1.30500.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.35001
Open: 1.35120
% chg. for the last day: +0.09
Day’s range: 1.35094 – 1.35408
52 wk range: 1.2458 – 1.4692

During the last trading session, the Canadian dollar is in a sideways movement. The USD/CAD pair is testing key support and resistance levels: 1.34750 and 1.35350, respectively. Investors are waiting for the decision of the Bank of Canada regarding further monetary policy. Most experts believe that the regulator will leave the interest rate at the same level of 0.50%.

forex-forecast-usdcad-24-05-2017

At 17:00 (GMT+3:00) the decision on the interest rate of the Central Bank of Canada will be released.          

The signals of the indicators vary. The USD/CAD quotes have fixed between 50 MA and 200 MA.

The MACD histogram is located in the positive area and above the signal line, which indicates the strength of buyers at USD/CAD.

Stochastic Oscillator has left the overbought zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.

Trading recommendations

Support levels: 1.34750
Resistance levels: 1.35350, 1.36000, 1.36650

We recommend waiting for the decision of the Bank of Canada. It is also necessary to pay attention to the comments of representatives of the Central Bank. It is better to open positions from key levels.

If the price overcomes the support level of 1.34750, sales on the USD/CAD currency pair may prevail. The movement is tending potentially to the round level of 1.34000.

Alternative option. If the USD/CAD quotesconsolidate above the 1.35350 mark, we recommend you to look for entry points to open long positions. The target movement level is 1.36000-1.36250.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 111.290
Open: 111.778
% chg. for the last day: +0.43
Day’s range: 111.728 – 112.029
52 wk range: 99.08 – 123.69

Yesterday the correction was observed on USD/JPY. The currency retained the local support at 110.900, which triggered aggressive purchases in the afternoon. The yen weakened against the US dollar by more than 50 points. At the moment, the price is testing a round level of 112.000. The attention is focused on the FOMC protocols.

forex-forecast-usdjpy-24-05-2017

There is no important news from Japan today. We are waiting for statistics on the US economy.
                                                                                                                                                                                    

The price is close to 200 MA, which is the strongest dynamic resistance.

The MACD histogram has fixed in the positive zone and continues to rise, which indicates further correction of the USD/JPY currency pair.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy USD/JPY.

Trading recommendations

Support levels: 111.500, 110.900
Resistance levels: 112.000, 113.000

We believe that the correction on USD/JPY may continue. If the price consolidates above the round level of 112.000, we recommend considering the purchases. The movement is tending potentially to 112.500-113.000. When tracking a position, one should use a trailing stop.