Forex forecast on February 23 for EURUSD, GBPUSD, USDCAD, USDJPY

The forecast for EUR/USD

Technical indicators of the currency pair:

Prev. Opening: 1.05367
Opening: 1.05566
Chg. % Last day: +0.18
Day range: 1.05377 – 1.05725
52-week range: 1.0366 – 1.1616

Yesterday’s FOMC report revealed that the Fed is ready to tighten monetary policy in the near future. At the same time, the EUR/USD currency pair kept the level of 1.05000, which caused the correctional movement. The trading ended with a slight increase in the euro against the US dollar.

forex-forecast-eurusd-22-02-2017

The MACD histogram has moved into the positive zone and continued to rise, indicating a further correction of EUR/USD.

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

Newsfeed on 02/23/2017:
– the number of initial claims for unemployment benefits in the US (15:30 GMT+2:00);
– the FOMC member Lockhart’s speech (15:35 GMT+2:00);
– the FOMC member Kaplan’s speech (20:00 GMT+2:00).

The growth of GDP in German in the 4th quarter confirmed market expectations. The indicator was 0.4%.

Trading recommendations:

Support levels: 1.05300, 1.04900
Resistance levels: 1.05850

We expect a correction in the EUR/USD currency pair. The potential for movement – 1.05850-1.06000.

The forecast for GBP/USD

Technical indicators of the currency pair:

Prev. Opening: 1.24680
Opening: 1.24431
Chg. % Last day: -0.18
Day range: 1.24275 – 1.24754
52-week range: 1.1986 – 1.5020

During the Asian trading session, the pound held the local support level of 1.24350. Currently, purchases are prevailing on the market. The GBP/USD currency pair is being traded near the key resistance level of 1.24700.

forex-forecast-gpbusd-22-02-2017

The MACD histogram has started to rise and fixed above the signal line, indicating purchases of GBP/USD.

Stochastic Oscillator has consolidated in the neutral zone, the %K line is above the %D line, which also indicates “bullish” moods in the GBP/USD currency pair.

The news background for the UK economy is calm.

Trading recommendations:

Support levels: 1.24350
Resistance Levels: 1.24700, 1.25100

If the GBP/USD quotations consolidate above the resistance level of 1.24700, be sure to consider the purchases up to the mark of 1.25100-1.25250.

An alternative could be a downward trend in GBP/USD to the local support of 1.24350.

The outlook on the currency pair USD/CAD

Technical indicators of the currency pair:

Prev. Opening: 1.31387
Opening: 1.31647
Chg. % Last day: +0.18
Day range: 1.31318 – 1.31702
52-week range: 1.2458 – 1.4692

There is an ambiguous image on USD/CAD. During yesterday’s trading, the currency kept the key resistance level of 1.32000, which caused a correction. The Canadian dollar has won back most of the losses. At the moment USD/CAD is being traded within the range 1.31350-1.31700.

forex-forecast-usdcad-22-02-2017

Indicators signals are ambiguous. The MACD histogram has started to decline and moved into the negative zone, indicating a drop in the USD/CAD quotes.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, indicating the growth of the USD/CAD currency pair.

We recommend paying attention to the news feed on the US economy.

Trading recommendations:

Support levels: 1.31350
Resistance levels: 1.31700, 1.32000

Our expectations were confirmed yesterday. If statistics from the US is weak, the correction in USD/CAD may continue to the level of 1.30900.

An alternative could be “bullish” moods on the USD/CAD currency pair. The nearest target for taking profit – 1.31900-1.32000.

The forecast for USD/JPY

Technical indicators of the currency pair:

Prev. Opening: 113.661
Opening: 113.285
Chg. % Last day: -0.34
Day Range: 113.069 – 113.454
52-week range: 99.08 – 123.69

During the Asian trading, a significant change in the USD/JPY rate did not happen. The currency continues to be traded in a range of 113.000-113.500. The market is waiting for additional drivers.

forex-forecast-usdjpy-23-02-2017

Indicators do not send accurate signals. The MACD histogram is located near the 0 mark.

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

The publication of important reports on the Japanese economy is not planned.

Trading recommendations:

Support levels: 113.000, 112.700
Resistance levels: 113.500

We expect the downward trend on the USD/JPY currency pair. If the price consolidates below the support level of 113.000, be sure to look for entry points for opening short positions. The target level of movement is 112.700-112.500.