Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.11582;
Open: 1.11026;
% 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).
Trading recommendations
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
Technical indicators of the currency pair:
Prev Open: 1.29684
Open: 1.29363
% 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.
