Forex Forecast for EURUSD, GBPUSD, USDJPY, USDCAD 3 January, 2017

Forecast for the EURUSD currency pair

Technical showings of the currency pair:

Pre-opening: 1.04850

Opening: 1.04542

Chg. % for the last day: +0.23

Day range: 1.04526 – 1.04900

52-week range: 1.0366 – 1.1616

Today, there is a growth in demand for the US dollar. Major currency pairs opened with a gap in support of the US currency. The EUR/USD currency pair has found resistance at 1.04900.

Indicators point to sellers’ power. The MACD histogram is in the negative zone and is below the signal line, indicating sales of EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the development of the downward trend on the EUR/USD currency pair.

Economic Calendar on 03/01/2017:

– changes in the number of unemployed in Germany (10:55 GMT+2:00);

– the unemployment rate in Germany (10:55 GMT+2:00);

– the consumer price index in Germany (15:00 GMT+2:00);

– the index of business activity in the manufacturing sector from ISM in the US (17:00 GMT+2:00).

Trading recommendations:

Support levels: 1.04250

Resistance levels: 1.04900, 1.05800

The previous forecast was confirmed. We believe that the EUR/USD quotes may continue to fall. We recommend to consider selling to around 1.04000.

Forecast for the GBPUSD currency pair

Technical showings of the currency pair: Pre-opening: 1.22582

Opening: 1.22728

Chg. % for the last day: +0.61

Day range: 1.22716 – 1.23071

52-week range: 1.2016 – 1.5513

Today, there is a high trading activity on the GBP/USD currency pair. Key support and resistance levels are 1.22550 and 1.23050.

The MACD histogram has started to decline and moved in the negative zone, indicating the decline of the GBP/USD quotes.

Stochastic Oscillator has fixed in the neutral zone, the %K line is below the %D line, that indicates the development of the “bearish” moods on the GBP/USD currency pair.

At 11:30 (GMT + 2:00), the data on the index of business activity in the manufacturing sector in the UK will be released.

Trading recommendations:

Support levels: 1.22550, 1.21100

Resistance levels: 1.23050

Our expectations were confirmed. We expect the decline of the GBP/USD quotes to the local support of 1.22400.

Forecast for the USDCAD currency pair

Technical showings of the currency pair: Pre-opening: 1.35022

Opening: 1.34366

Chg. % for the last day: -0.52

Day range: 11.34039 – 1.34520

52-week range: 1.2458 – 1.4692

On Friday, 30 December, the Canadian dollar strengthened against the US dollar by more than 70 points. At the moment the USD/CAD currency pair is testing the support level of 1.34200.

The MACD histogram has fixed in the negative zone, but above the signal line, which delivers a weak signal to sell USD/CAD.

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

We recommend to pay attention to the news background from the United States.

Trading recommendations:

Support levels: 1.34200

Resistance levels: 1.34750, 1.35450

The previous forecast was confirmed. If statistics from the US is positive, the USD/CAD quotes may reach the level of 1.34700.

An alternative may be a continuation of the correction on USD/CAD to the local support of 1.33800.

Forecast for the USDJPY currency pair

Technical showings of the currency pair: Pre-opening: 116.520

Opening: 117.485

Chg. % for the last day: +0.29

Day range: 117.214 – 118.033

52-week range: 99.08 – 123.69

During the Asian trading session, the yen weakened against the US dollar by more than 75 points. The USD/JPY currency pair has fixed above the resistance level of 117.450.

The MACD histogram is in the positive zone and continues to rise, which means purchases of USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the development of an upward trend on the USD/JPY currency pair.

Important news from Japan is not expected today. It is necessary to pay attention to the news feed on the US economy.

Trading recommendations:

Support levels: 116.450, 117.00

Resistance levels: 118.150

If statistics from the US is weak, the correction on the USD/JPY currency pair may develop to the level of 117.500.

An alternative would be the USD/JPY quotes growth to the local resistance of 118.150.