Forecast for the EUR/USD currency pair
Prev Open: 1.11582;
% chg. for the last day: -0.50
Daily range: 1.10965 – 1.11311
52-week range: 1.0366 – 1.1616
Yesterday, the correction was observed on EUR/USD. The euro weakened against the US dollar by more than 50 points. The currency reached a round level of 1.11000. This is due to the release of positive statistics from the US. Today, the publication of important economic reports is not planned. At the moment, the technical pattern is ambiguous. Positions must be opened from key levels.
The MACD histogram has begun to rise and fixed above the signal line, which indicates the growth of the EUR/USD quotes.
Stochastic Oscillator is in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy EUR/USD.
The news background is calm today. However, we recommend you to pay attention to the following events:
– speeches by representatives of the ECB Praet (12:00 GMT+3:00) and Constancio (15:00 GMT+3:00);
– speech of the FOMC member Bullard (16:15 GMT+3:00).
Support levels: 1.11000, 1.10150
Resistance levels: 1.11700
If the price fixes below the round level 1.11000, the correction of EUR/USD may continue. The movement is tending potentially to 1.10500.
If the EUR/USD quotes overcome the local resistance level 1.11400, we recommend looking for entry points to the market to open long positions. The immediate goal for profit taking is 1.11700-1.12000.
Forecast for the GBP/USD currency pair
Prev Open: 1.29684
% chg. for the last day: -0.26
Daily range: 1.29144 – 1.29782
52-week range: 1.1986 – 1.5020
Yesterday, high trading activity and volatility were observed at GBP/USD. In the first half of the day, the pound received support against the background of positive statistics on retail sales in the UK. In the second half of the day, the currency held back a local resistance of 1.30400, which triggered aggressive sales. The US dollar recovered all losses. At the moment, the key trading range is 1.29400-1.29750.
Stochastic Oscillator is located near the overbought zone, the %K line crossed the %D line. There are no signals at the moment.
The news background is calm today. At 13:00 (GMT+3:00) the index of industrial orders in Britain will be published.
Support levels: 1.29400, 1.29000
Resistance levels: 1.29750, 1.30400
If the price consolidates above the local resistance of 1.29750, a bullish sentiment may prevail on the GBP/USD currency pair. The movement is tending potentially to 1.30250-1.30400.
Alternative option. If the price overcomes the local support level of 1.29400, sales should be considered. The immediate goal for profit-taking is 1.29000.
Forecast for USD/CAD
Prev Open: 1.35998
% chg. for the last day: 0.00
The daily range: 1.35836 – 1.36106
52-week range: 1.2458 – 1.4692
The USD/CAD currency pair continues to be traded in flat. At the moment the price is located in the key demand zone 1.35800-1.36000. The nearest resistance is 1.36500. The attention is focused on statistics on inflation and retail sales in Canada.
The signals of the indicators vary. The MACD histogram has fixed in the negative zone and below the signal line, which indicates the bearish sentiment of USD/CAD.
Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the growth of USD/CAD.
Economic reports from Canada:
– the basic consumer price index (15:30 GMT+3:00);
– the basic index of retail sales (15:30 GMT+3:00);
– the volume of retail sales (15:30 GMT+3:00).
Support levels: 1.36000
Resistance levels: 1.36500
If the statistics on the economy of Canada is positive, we recommend considering USD/CAD sales. The movement is tending potentially to 1.35500-1.35250.
An alternative may be the growth of the USD/CAD quotations to the level of resistance 1.36500.
Forecast for the USD/JPY currency pair
Prev Open: 110.824
% chg. for the last day: +0.61
Daily range: 111.100 – 111.613
52-week range: 99.08 – 123.69
Yesterday, the yen corrected against the US currency. The growth of the USD/JPY quotations exceeded 0.5%. At the moment, the currency is testing the resistance level at 111.500. Demand for the yen is supported because of political instability in Washington and a drop in the yield of US government bonds.
The MACD histogram does not provide accurate signals. The indicator is located near the 0 mark.
Stochastic Oscillator is 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 from Japan today.
Support levels: 110.700
Resistance levels: 111.500, 112.500
Our past expectations have been confirmed. We still expect a downward trend in USD/JPY. If the price fixes below the local support level of 111.150, we recommend you to look for entry points to the market to open short positions. The immediate goal for profit-taking is 110.700-110.350.