Forecast for the EUR/USD currency pair
Prev Opening: 1.06532
Chg. % Last day: -0.47
Day range: 1.06036 – 1.06392
52-week range: 1.0366 – 1.1616
Today there will be a lot of important economic reports and news from the US. The Fed may raise interest rates for the first time in 2017. At the moment, the FedWatch Tool is at 90.8%. We believe that this event is already in the price. It is necessary to follow the comments of representatives of the Central Bank. If the regulator says that another rise in interest rates is possible, then demand for the US dollar can significantly increase. The key trading range on the EUR/USD is 1.06150-1.06750.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.
Stochastic Oscillator is in overbought zone, the %K line crossed the %D line. There are no signals yet.
News background on the US economy:
– core consumer price index (14:30 GMT+2:00);
– base index of retail sales (14:30 GMT+2:00);
– the NY Empire State manufacturing index (14:30 GMT+2:00);
– the volume of retail sales (14:30 GMT+2:00);
– FOMC economic forecasts (20:00 GMT+2:00);
– Fed decision on interest rates (20:00 GMT+2:00);
– FOMC press conference (20:30 GMT+2:00).
Support levels: 1.06150
Resistance levels: 1.06750, 1.07150
The previous forecast was confirmed. Today, we recommend to reduce the risks from open positions.
If statistics from the US is positive, the EUR/USD currency pair may reach the level of 1.05500.
The alternative may be growth of the EUR/USD quotes to the resistance level of 1.07150.
The forecast for GBP/USD
Prev. Opening: 1.22183
Chg. % Last day: -0.53
Day range: 1.21463 – 1.22562
52-week range: 1.1986 – 1.5020
Today, the power of buyers is observed on the GBP/USD currency pair. The British currency won back yesterday’s losses. The GBP/USD quotes growth exceeded 90 points. The key support and resistance levels are 1.22000 and 1.22500, respectively. We expect data on the UK labor market.
The MACD histogram has moved into the positive zone and is above the signal line, indicating a “bullish” moods on the GBP/USD.
Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals yet.
Economic reports from the UK:
– average wage level (11:30 GMT+2:00);
– change in the number of jobless claims (11:30 GMT+2:00);
– unemployment rate (11:30 GMT+2:00).
Support levels: 1.22000, 1.21500
Resistance levels: 1.22500
If the statistics on the UK labor market is positive, further growth of the GBP/USD quotes to the round level of 1.23000 is possible.
An alternative would be a downward trend on the GBP/USD to around 1.21750-1.21500.
The Forecast for USD/CAD
Chg. % for the last day: +0.25
Day range: 1.34502 – 1.34846
52-week range: 1.2458 – 1.4692
Since the beginning of this week, the USD/CAD currency pair is being traded in trading range of 1.34250-1.35000. There are no unidirectional movements. The market is waiting for statistics from the US and the Fed decision.
The MACD histogram has started to decline and moved into the negative zone, indicating a drop in the USD/CAD quotes.
Stochastic Oscillator has reached the oversold zone, the %K line crossed the %D line. There are no signals yet.
The news background on the economy of Canada is calm today.
Support levels: 1.34250, 1.33600
Resistance levels: 1.35000
If economic reports from the US are optimistic, growth of the USD/CAD currency pair may continue. The potential for movement – 1.35000-1.35500.
An alternative would be decline of the USD/CAD quotes to 1.34000-1.33750.
When holding the positions, we recommend to use a trailing stop.
The forecast for USD/JPY
Prev. Opening: 114.842
Chg. % Last day: -0.11
Day Range: 114.588 – 114.887
52-week range: 99.08 – 123.69
Yesterday, trading on the USD/JPY was very active. The currency held the local resistance level of 115.150, which caused a downward trend. At the moment, the USD/JPY is testing the level of 114.750. The attention of investors is focused on the US Federal Reserve System decision.
The MACD histogram is in the negative zone and below the signal line, indicating a “bearish” moods on the USD/JPY currency pair.
Stochastic Oscillator is near oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/JPY.
It is necessary to pay attention to the news background on the US economy.
Support levels: 114.100
Resistance levels: 114.750, 115.500
If statistics from the US is weak, the correction may develop on the USD/JPY currency pair. The nearest goal for profit-taking is 114.250-114.100.
An alternative would be the USD/JPY growth. The potential for movement – 115.250-115.500.