Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Opening: 1.05404
Opening: 1.05757
Chg. % Last day: +0.34
Day range: 1.05721 – 1.06029
52-week range: 1.0366 – 1.1616
Yesterday, the ECB kept its monetary policy at the same level. The regulator raised the forecast for the growth of the EU economy and inflation for 2017 and 2018. Trading ended with the growth of the EUR/USD quotes by 0.34%. Today, the attention is focused on the report on the labor market in the US. Most experts expect positive statistics. At the moment, the key trading range on the EUR/USD is 1.05600-1.06150.
The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicating the drop in the EUR/USD quotes.
News background on the US economy:
– average hourly wage (15:30 GMT+2:00);
– change in the number of employed people in the non-farm sector of the country (15:30 GMT + 2:00);
– the proportion of the economically active population (15:30 GMT+2:00);
– unemployment level (15:30 GMT+2:00).
Trading recommendations:
Support levels: 1.05600, 1.05200
Resistance levels: 1.06150
If statistics from the US is optimistic, a downward trend on EUR/USD may develop to the level of 1.05600-1.05400.
An alternative would be an increase of the EUR/USD quotes to the level of 1.06500.
The forecast for GBP/USD
Technical indicators of the currency pair:
Prev. Opening: 1.21679
Opening: 1.21638
Chg. % Last day: -0.02
Day range: 1.21488 – 1.21693
52-week range: 1.1986 – 1.5020
Yesterday, the GBP/USD currency pair was in a sideways movement with a range of 1.21500-1.22000. A significant change of the rate did not happen. At the moment, the pound is testing the lower limit of the trading range.
The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.
