Forex forecast on May 09 for pairs EURUSD, GBPUSD, USDCAD, USDJPY

Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.10198
Opening: 1.09240
Amend. % Of the last day: -0.37
Daily range: 1.09026 – 1.09333
52-week range: 1.0366 – 1.1616

The euro reacted weakly to the victory of E. Macron in the presidential elections in France. At the moment the bearish sentiment is dominating on EUR/USD. Demand for the dollar is supported by a positive report on the labor market in the US. The pressure on the single currency is caused by weak data on industrial production and the balance of visible trade in Germany. The key trading range is 1.08800-1.09500.

forex-forecast-eurusd-09-05-2017

Indicators point to the strength of sellers. The MACD histogram has fixed in the negative zone and continues to decline.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell EUR/USD.

Today, the news background is rather calm. We recommend you to pay attention to the following events:
– speech of the FOMC member Kashkari (16:00 GMT+3:00);
– the number of open vacancies in the JOLTS labor market (17:00 GMT+3:00);
– speech of the FOMC member Kaplan (23:15 GMT+3:00).

Trading recommendations

Support levels: 1.08800
Resistance levels: 1.09500, 1.09850

We recommend considering sales of EUR/USD. The movement is tending potentially to 1.08800-1.08500. When tracking a position, one should use a trailing stop.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.29831
Discovery: 1.29346
Amend. % Of the last day: -0.22
Daily range: 1.29316 – 1.29556
52-week range: 1.1986 – 1.5020

The technical pattern on GBP/USD indicates the development of the corrective movement. Today, the currency retained the “mirror” resistance level of 1.29500, which triggered aggressive sales. The nearest support is the round level of 1.29000.

forex-forecast-gpbusd-09-05-2017
                               
The MACD histogram is located in the negative zone and continues to decline, which signals a fall in the GBP/USD quotes.

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

The publication of important economic reports on the economy of Britain today is not planned.

Trading recommendations

Support levels: 1.29000
Resistance levels: 1.29500, 1.29850

We expect the correction on the GBP/USD currency pair. We recommend looking for entry points to the market in order to open short positions. The movement is tending potentially to 1.29000-1.28750.

Forecast for USD/CAD

Technical indicators of the currency pair:

Prev Opening: 1.36538
Opening: 1.36926
Chg. % of the last day: +0.15
The daily range: 1.36862 – 1.37084
52-week range: 1.2458 – 1.4692

At the moment, the technical pattern on USD/CAD is ambiguous. The key support and resistance levels can be identified: 1.36500 and 1.37300, respectively. The trading during the Asian session was calm. The correction in the market of “black gold” supports the Canadian dollar.

forex-forecast-usdcad-09-05-2017

The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.

Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment on USD/CAD.

Newsline on the economy of Canada:
– permits for construction (15:30 GMT+3:00).
          
Trading recommendations

Support levels: 1.36500
Resistance levels: 1.37300, 1.38000

If the price fixes below the local support 1.36850, we recommend selling USD/CAD. The target movement level is 1.36500-1.36250.

Alternative option. If the USD/CAD quotes overcome the resistance level of 1.37300, it is necessary to search for entry points in the market to open long positions. The movement is tending potentially to 1.37750-1.38000.

Forecast for the USD/JPY currency pair

Technical indicators of the currency pair:

Prev Opening: 112.964
Opening: 113.257
Chg. % of the last day: +0.52
Daily range: 113.125 – 113.638
52-week range: 99.08 – 123.69

Yesterday USD/JPY held the local demand zone of 112.250-112.450, which triggered aggressive purchases in the afternoon. Today, the yen continued to lose ground against the US currency. The nearest resistance is 113.750.

forex-forecast-usdjpy-09-05-2017

The MACD histogram has fixed in the positive zone and above the signal line, which indicates further growth of USD/JPY.

Stochastic Oscillator is located near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

There is no important news on the economy of Japan today.

Trading recommendations

Support levels: 113.000, 112.250
Resistance levels: 113.750

The previous forecast was confirmed. We believe that the growth of the currency pair may continue. The movement is tending potentially to the round level of 114.000.