Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.10824
Open: 1.11582
% chg. for the last day: +0.69
Daily range: 1.11208 – 1.11713
52-week range: 1.0366 – 1.1616

On the EUR/USD currency pair there is a strongly pronounced upward trend. Since the beginning of the current week, the euro has added more than 200 points. The US currency is under pressure amid rising political risks in the US. At the moment, the key trading range is 1.11000-1.11700.

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Indicators do not send accurate signals. The MACD histogram is in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator has reached the oversold zone, the %K line is below the %D line, which gives a weak signal to sell EUR/USD.

There are no important economic reports from the EU today. We recommend you to pay attention to the following events:
– the number of initial applications for unemployment benefits in the United States (15:30 GMT+3:00);
– the index of production activity from the Federal Reserve Bank of Philadelphia (15:30 GMT+3:00);
– speech by the head of the ECB Draghi (20:00 GMT+3:00).
    
Trading recommendations

Support levels: 1.11000, 1.10150
Resistance levels: 1.11700

At the moment, the technical pattern is ambiguous. We recommend you to open positions from key levels.
In the near future, the technical correction of EUR/USD is possible. If the price consolidates below the round level of 1.11000, sales should be considered. The movement is tending to 1.10500.

If the price overcomes the local resistance of 1.11700, the further growth of the EUR/USD currency pair is possible. The target level of movement is 1.12000-1.12250.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29153
Open: 1.29684
% chg. for the last day: +0.43
Daily range: 1.29365 – 1.29836
52-week range: 1.1986 – 1.5020

During yesterday’s trading session, purchases prevailed on GBP/USD. This is due to the publication of a positive report on the labor market in Britain. At the moment, we can identify the key levels of support and resistance: 1.29400 and 1.29750, respectively. We are waiting for statistics on UK retail sales.

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The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line crossed the %D line. At the moment there are no signals.

Economic reports from Britain:
– the basic index of retail sales (11:30 GMT+3:00);
– the volume of retail sales (11:30 GMT+3:00).
                      
Trading recommendations

Support levels: 1.29400, 1.29000
Resistance Levels: 1.29750

The previous forecast was confirmed. If the data on retail sales are positive, the growth of the GBP/USD currency pair may continue. The movement is tending potentially to 1.30000-1.30250.

An alternative may be the correction of GBP/USD to the level of 1.29200-1.29000.

Forecast for USD/CAD

Technical indicators of the currency pair:

Prev Open: 1.36084
Open: 1.35998
% chg. for the last day: -0.02
The daily range: 1.35803 – 1.36396
52-week range: 1.2458 – 1.4692

During the last trading sessions, USD/CAD is in a sideways movement. The unidirectional movement is not observed. The currency tests the boundaries of the key trading range 1.36000-1.36500.

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The MACD histogram has begun to rise and moved to the positive zone, which indicates the growth of the USD/CAD currency pair.

Stochastic Oscillator has reached the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

At (3:30 GMT+3:00), the data on the volume of foreign investment in Canadian securities will be published.
          
Trading recommendations

Support levels: 1.36000
Resistance levels: 1.36500, 1.36850

We continue to expect a downward trend in USD/CAD. We recommend looking for entry points to the market in order to open short positions. The immediate goal for profit-taking is 1.35800.

Forecast for the USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.105
Open: 110.824
% chg. for the last day: -2.03
Daily range: 110.513 – 111.416
52-week range: 99.08 – 123.69

Yesterday, the yen strengthened significantly against the US dollar. The drop in the USD/JPY quotes exceeded 2%. The currency found support at 110.700. The local resistance is the mark of 111.450. The demand for safe assets is supported by the growth of political risks in the US.

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

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

The yen is supported by positive data on Japan’s GDP. On a year-to-year basis, the country’s economy grew by 2.2% in the first quarter. Market expectations were at the level of 1.7%.

Trading recommendations

Support levels: 110.700
Resistance levels: 111.450, 113.000

The previous forecast turned out to be quite accurate. We expect a further drop in USD/JPY. The target level of movement is 110.500-110.250.