Forecast for the EUR/USD currency pair
Prev Opening: 1.08732
Chg. % Of the last day: -0.06
Daily range: 1.08620 – 1.08860
52-week range: 1.0366 – 1.1616
Yesterday, the head of the ECB Draghi said that the regulator intends to adhere to the current rate of the monetary policy. Trading ended with a slight decrease in the euro against the US dollar. At the moment, the EUR/USD currency pair is testing the key support level of 1.08700.
The MACD histogram has begun to rise and fixed above the signal line, which indicates a correction of EUR/USD.
Stochastic Oscillator has fixed in the neutral zone, the %K line is above the %D line, which also gives a signal to buy EUR/USD.
Economic calendar on May 11, 2017:
– economic forecasts of the EU (12:00 GMT+3:00);
– speech of the FOMC member Dudley (13:25 GMT+3:00);
– the number of initial applications for unemployment benefits in the United States (15:30 GMT+3:00);
– the producer price index in the USA (15:30 GMT+3:00).
Support levels: 1.08700
Resistance levels: 1.09300, 1.09850
If the price overcomes the key support level of 1.08700, we recommend looking for entry points to the market for opening short positions. The movement is tending potentially to 1.08200.
Forecast for the GBP/USD currency pair
Prev Opening: 1.29331
Chg. % Of the last day: -0.04
Daily range: 1.29309 – 1.29395
52-week range: 1.1986 – 1.5020
Since the beginning of this week, the GBP/USD currency pair is in a sideways movement. During this period, strong support and resistance levels were formed: 1.29100 and 1.29850, respectively. The attention of participants of financial markets is directed to the meeting of the Bank of England. Most experts believe that the regulator will keep the interest rate at the previous level of 0.25%. It is necessary to pay attention to the comments of representatives of the Central Bank.
Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.
News background on the economy of Britain:
– output in the manufacturing industry (11:30 GMT+3:00);
– balance of visible trade (11:30 GMT+3:00);
– Bank of England meeting and interest rate decision (14:00 GMT+3:00).
Support Levels: 1.29100
Resistance levels: 1.29500, 1.29850
If the Bank of England comments are optimistic, further growth of the GBP/USD currency pair to 1.30000-1.30250 is possible.
An alternative may be a decrease in GBP/USD to the demand zone of 1.29000-1.29100.
Forecast for USD/CAD
Prev Opening: 1.37194
Chg. % Of the last day: -0.47
The daily range: 1.36522 – 1.37432
52-week range: 1.2458 – 1.4692
Yesterday, sales prevailed on USD/CAD. The Canadian dollar added more than 60 points. This is due to the restoration of the oil price due to a significant decline in stocks in the US. Nevertheless, during Asian trading, the currency retained key support at 1.36500, which triggered bullish sentiment. The US dollar won all the losses. At the moment USD/CAD is testing the resistance level 1.37300.
The signals of the indicators vary. The MACD histogram has fixed in the positive zone and above the signal line, which indicates further growth of the USD/CAD quotes.
Stochastic Oscillator has left the overbought zone, the %K line is below the %D line, which gives a signal to sell USD/CAD.
At 15:30 (GMT+3:00) there will be data on the price index for new housing in Canada.
Support levels: 1.36500
Resistance levels: 1.37300, 1.38000
We expect further growth of the USD/CAD currency pair. If the price fixes above the resistance level 1.37300, we recommend you to look for entry points to the market to open long positions. The target movement level is 1.37750-1.38000.
Forecast for the USD/JPY currency pair
Prev Opening: 113.976
Opening hours: 114.260
Chg. % of the last day: +0.26
The daily range: 114.058 – 114.370
52-week range: 99.08 – 123.69
Yesterday the USD/JPY currency pair retained the local support level of 113.750. The bullish sentiment prevailed on the market. This is due to an increase in the yield of US government bonds. The yen reached a key resistance level of 114.250. The trading during the Asian session was calm.
The MACD histogram is located in the positive area, but below the signal line, which gives a weak signal to buy USD/JPY.
Stochastic Oscillator is in the neutral zone, the %K line crossed the %D line. There are no signals at the moment.
We recommend paying attention to the news line from the USA.
Support levels: 113.750, 113.000
Resistance Levels: 114.250
If the statistics from the US is positive, the growth of the USD/JPY currency pair may continue. The movement is tending potentially to 114.750.
An alternative may be the correction of USD/JPY to the level of 113.750-113.50.