Forex Forecast on February 21 for EURUSD, GBPUSD, USDCAD, USDJPY

The forecast for EUR/USD

Technical indicators of the currency pair:

Prev. Opening: 1.06081
Opening: 1.06137
Chg. % Last day: -0.10
Day range: 1.05705 – 1.06150
52-week range: 1.0366 – 1.1616

Yesterday, the EUR/USD currency pair had weak trading activity. This is due to the holiday in the US. During the Asian trading session, the euro weakened against the US currency. The dollar is supported by a positive dynamics of the US government bonds yields. The nearest resistance is the level of 1.05600.

forex-forecast-usdjpy-14-02-2017

The MACD histogram has consolidated in the negative zone and continues to decline, signaling the fall of the EUR/USD quotations.

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

Economic Calendar on 02/21/2017:
– the index of business activity in the manufacturing sector in Germany (10:30 GMT + 2: 00);
– the index of business activity in the manufacturing sector of the euro area (11:00 GMT + 2: 00);
– the composite index of business activity in the euro area by Markit (11:00 GMT + 2: 00);
– the FOMC member Kashkari’s speech (15:50 GMT + 2: 00);
– the index of business activity in the manufacturing sector of the US (16:45 GMT + 2: 00);
-the FOMC member Harker’s speech (19:00 GMT + 2: 00);
– the FOMC Member Williams’ speech (22:30 GMT + 2: 00).

Trading recommendations:

Support levels: 1.05600
Resistance levels: 1.06150, 1.06750

Yesterday’s forecast was confirmed. We expect a continuation of the downward trend on the EUR/USD currency pair to around 1.05400-1.05300.

The forecast for GBP/USD

Technical indicators of the currency pair:

Prev. Opening: 1.24071
Opening: 1.24578
Chg. % Last day: +0.26
Day range: 1.24178 – 1.24808
52-week range: 1.1986 – 1.5020

At the moment the power of sellers is observed on the GBP/USD currency pair. Price has kept the key resistance level of 1.24700, prompting aggressive selling. During the Asian trading session, the pound lost in price more than 40 points. We expect a press conference of the head of the Bank of England.

forex-forecast-usdjpy-14-02-2017

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

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

The news background for the UK economy:
– the Bank of England Carney;s speech (12:00 GMT + 2: 00);
– hearings of inflation report (12:00 GMT + 2: 00).
 
Trading recommendations:

Support levels: 1.24000
Resistance levels: 1.24700, 1.25100

We recommend waiting for the press conference of the chairman of the Bank of England and the inflation data. If the price consolidates below the key support level of 1.24000, a drop in the GBP/USD quotes may continue. The potential for movement – 1.23600-1.23500.

The forecast for USD/CAD

Technical indicators of the currency pair:

Prev. Opening: 1.30945
Opening: 1.31049
Chg. % Last day: +0.13
Day range: 1.30987 – 1.31560
52-week range: 1.2458 – 1.4692

The Canadian dollar continues to lose ground relative to the US currency. During the Asian session, the USD/CAD pair rose by more than 50 points. The price overcame the resistance level of 1.31350.

forex-forecast-usdjpy-14-02-2017

The MACD histogram is in the positive zone and above its signal line, indicating the “bullish” moods on the USD/CAD currency pair.

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

We recommend paying attention to the news feed from the USA.

Trading recommendations:

Support levels: 1.31350, 1.30900
Resistance levels: 1.31700

We believe that the increase of USD/CAD may continue. The target for taking profit – 1.31900.

The forecast for USD/JPY

Technical indicators of the currency pair:

Prev. Opening: 112,874
Opening: 113,089
Chg. % Last day: +0.16
Day Range: 113,085 – 113,710
52-week range: 99.08 – 123.69

At the moment, purchases are prevailing on the USD/JPY currency pair. Trading in the Asian session was very active. The yen weakened against the US dollar by more than 50 points. The key trading range is 113.300-113.850.

forex-forecast-usdjpy-14-02-2017

Indicators signals are ambiguous. The MACD histogram is in the positive zone and above its signal line, indicating purchases of USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating the “bearish” moods on the USD/JPY currency pair.

The news background for the Japanese economy is calm now.

Trading recommendations:

Support levels: 113.300, 112.500
Resistance levels: 113.850

If statistics from the US is positive, the growth of the USD/JPY currency pair may continue. The potential for movement – 114.150.

An alternative could be a downward trend in USD/JPY to the local support of 112.850.