Forecast for the EUR/USD currency pair
Prev Opening: 1.05961
Chg. % Of the last day: +0.06
Daily range: 1.05946 – 1.06188
52-week range: 1.0366 – 1.1616
Yesterday’s positive statistics on the economic sentiment indexes from ZEW supported the demand for a single currency. The key trading range is still 1.05750-1.06400. The publication of important economic reports is not planned today. The attention is focused on geopolitical risks in the Middle East.
Indicators point to the bullish sentiment. The MACD histogram is in the positive zone and continues to rise.
Stochastic Oscillator is located in the neutral zone, %K is above %D, which also sends a signal to buy EUR/USD.
At 15:30 (GMT+3:00) the data on the export price and import price indices in the US.
Support levels: 1.05750
Resistance levels: 1.06400
We expect an increase in the EUR/USD currency pair. We recommend looking for entry points to the market for opening long positions. The movement is tending potentially to 1.06500-1.06750.
Forecast for the GBP/USD currency pair
Prev Opening: 1.24136
Chg. % of the last day: +0.62
Daily range: 1.24800 – 1.24949
52-week range: 1.1986 – 1.5020
Yesterday, the pound rose against the US dollar by more than 80 points. This is due to the release of quite strong inflation data in the country. At the moment the GBP/USD currency is being traded near the round level of 1.25000. We expect statistics on the UK labor market.
Stochastic Oscillator is in the neutral zone, %K line is above %D line, which indicates the growth of GBP/USD.
News line on the economy of Britain:
– average wage level with premiums (11:30 GMT+3:00);
– change in the number of claims for unemployment benefits (11:30 GMT+3:00);
– the unemployment rate (11:30 GMT+3:00);
– speech by the Head of the Bank of England Carney (11:30 GMT+3:00).
Support levels: 1.24500
Resistance levels: 1.25000, 1.25500
If the report on the labor market in Britain is positive, the growth of the GBP/USD currency pair may continue. The target of movement is 1.25500.
An alternative option may be the correction of GBP/USD to the level of 1.24500-1.24250.
Forecast for USD/CAD
Prev Opening: 1.33246
Chg. % of the last day: -0.02
Daily range: 1.33170 – 1.33390
52-week range: 1.2458 – 1.4692
Yesterday’s trading on USD/CAD was very active. At the same time, there was no significant change in course and unidirectional movements. The currency tested key support and resistance levels: 1.33150 and 1.33550. We await the decision of the Bank of Canada on the interest rate.
The MACD histogram has consolidated in the negative zone and continues to decline, which indicates a bearish sentiment on USD/CAD.
Stochastic Oscillator is in the neutral zone, %K line is below %D line, which also gives a signal to sell USD/CAD.
– publication of the Bank of Canada Monetary Policy Report (17:00 GMT+3:00);
– the decision on the interest rate (17:00 GMT+3:00);
– speech by the head of the Bank of Canada Poloz (18:15 GMT+3:00).
Support levels: 1.33150, 1.32850
Resistance levels: 1.33550
Today we recommend reducing risks when opening positions on the USD/CAD currency pair. It is better to open positions from key levels.
If the price consolidates above the level of 1.33550, an upward trend may develop on the USD/CAD currency pair. The movement is potentially tending to 1.34000-1.34250.
If the price fixes below the support level of 1.33150, sales of the USD/CAD currency pair may prevail. The movement is potentially tending to 1.32850-1.32500.
Forecast for the USD/JPY currency pair
Prev Opening: 110.918
Chg. % of the last day: -1.19
Daily range: 109.337 – 109.754
52-week range: 99.08 to 123.69
Geopolitical risks in Syria and North Korea continue to increase, which supports the demand for safe assets. Since the beginning of this week, the drop in the USD/JPY quotes exceeded 150 points. At the moment, the currency has found support at 109.400.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.
Stochastic Oscillator is located near the overbought zone, %K line is above %D line, which gives a weak signal to buy USD/JPY.
There are no important statistics from Japan today.
Support level: 109.400
Resistance levels: 110.200, 110.750
The previous forecast was confirmed. We believe that the downward trend in USD/JPY may continue. We recommend looking for entry points to the market for opening short positions. The movement is potentially tending to to 109.250-109.000.