The forecast for EUR/USD
Prev. Opening: 1.06137
Chg. % Last day: -0.73
Day range: 1.05019 – 1.0559
52-week range: 1.0366 – 1.1616
Yesterday, the euro weakened significantly against the US dollar. The fall of the EUR/USD quotes exceeded 75 points. This is due to the growth of political risks in the EU and the possible Fed rate increase at the March meeting. The nearest support level is 1.04900. Investors’ attention is directed to the publication of the FOMC reports.
The MACD histogram is in the negative zone and continued to decline, indicating the drop in the EUR/USD quotes.
Stochastic Oscillator has reached oversold zone, the %K line is below the %D line, which delivers a weak signal to sell EUR/USD.
News background on 02/22/2017:
– IFO business climate index in Germany (11:00 GMT + 2: 00);
– Eurozone consumer price index (12:00 GMT + 2: 00);
– sales in the secondary housing market in the US (17:00 GMT + 2: 00);
– the FOMC member Powell’s speech (20:00 GMT + 2: 00);
– pblication of the FOMC reports (21:00 GMT + 2: 00).
Support levels: 1.04900
Resistance levels: 1.05300, 1.05850
The previous forecast was confirmed. We continue to expect the “bearish” moods on the EUR/USD currency pair. One should to seek entry points for opening short positions. The potential for movement – 1.04750-1.04500.
The forecast for GBP/USD
Prev. Opening: 1.24578
Chg. % Last day: +0.10
Day range: 1.24650 – 1.25079
52-week range: 1.1986 – 1.5020
Yesterday’s trading in the GBP/USD currency pair was very active. The price kept the circular level of 1.24000, prompting aggressive buying in the afternoon. The pound finished the trading day with a slight increase against the US dollar. We expect GDP data for the UK.
Indicators signals are ambiguous. The MACD histogram has consolidated in the positive zone, which indicates the growth of the GBP/USD quotations.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, indicating sales of GBP/USD.
Economic reports from the UK:
– business investment (11:30 GMT + 2: 00);
– data on the country’s GDP (12:00 GMT + 2: 00).
Support levels: 1.24700, 1.24000
Resistance levels: 1.25100
If statistics from the UK is positive, the growth of the GBP/USD currency pair may continue. The nearest target for taking profit is 1.25500.
An alternative could be a downward trend in GBP/USD to around 1.24300-1.24000.
The forecast for USD/CAD
Prev. Opening: 1.31049
Chg. % Last day: +0.27
Day range: 1.31095 – 1.31611
52-week range: 1.2458 – 1.4692
At the moment the USD/CAD currency pair is dominated by “bullish” moods. The US dollar is supported by the possibility of Fed monetary policy tightening at the meeting in March. The nearest resistance is the level of 1.31700.
The MACD histogram has started to rise and fixed above the signal line, indicating further growth of the USD/CAD currency pair.
Stochastic Oscillator is near overbought zone, the %K line is above the %D line, which gives a weak buy signal.
News feed on the Canadian economy:
– base index of retail sales (15:30 GMT + 2: 00);
– retail sales volume (15:30 GMT + 2: 00).
Support levels: 1.31350, 1.30900
Resistance levels: 1.31700
We expect growth of the USD/CAD quotes. The potential for movement – 1.31900-1.32000.
The forecast for USD/JPY
Prev. Opening: 113.089
Chg. % Last day: +0.52
Day Range: 113.194 – 113.728
52-week range: 99.08 – 123.69
At the moment, the technical pattern on the USD/JPY currency pair is ambiguous. The key support and resistance levels are 113.300 and 113.850 respectively. The participants of the financial markets are waiting for statistics from the US and the publication of FOMC reports.
The MACD histogram has started to decline and moved into the negative zone, indicating the “bearish” moods on the USD/JPY currency pair.
Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell USD/JPY.
It is necessary to pay attention to the news feed on the US economy.
Support levels: 113.300, 112.700
Resistance levels: 113.850
If statistics from the US is optimistic, the USD/JPY quotes may grow to around 113.850-114.000.
An alternative could be a downward trend in the USD/JPY currency pair to the support level of 112.700.