Forecast for the EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.09748
Open: 1.10824
% chg. for the last day: +0.97
Daily range: 1.10789 – 1.11225
52-week range: 1.0366 – 1.1616
Yesterday, the single currency strengthened significantly against the US dollar. The growth of the EUR/USD quotations exceeded 100 points. This is due to the publication of fairly optimistic statistics on the euro area economy, weak data on the real estate market and a decrease in the yield of government bonds in the US. The local resistance is 1.11200.
The MACD histogram has fixed in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.
Stochastic Oscillator has left the overbought zone, the %K line is below the %D line, which indicates the correction of the EUR/USD currency pair.
Today we expect important statistics. At 12:00 (GMT+3:00) the data on inflation in the euro area will be released.
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Trading recommendations
Support levels: 1.10150, 1.09650
Resistance levels: 1.11200
If the statistics from the eurozone is positive, the growth of the EUR/USD currency pair may continue. The movement is tending potentially to 1.11750-1.12000.
An alternative may be the correction of EUR/USD to the level of 1.10500-1.10150.
Forecast for the GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.28951
Open: 1.29153
% chg. for the last day: +0.19
Daily range: 1.29064 – 1.29413
52-week range: 1.1986 – 1.5020
Yesterday, there was a high trading activity on GBP/USD. This is due to the publication of inflation data in Britain. On an annual basis, the consumer price index rose to 2.7%. At the same time, the pound has not received significant support, since the growth of inflation is mainly caused by the weakening of the currency. Today, the report on the UK labor market is in the focus of attention. The key trading range is 1.29000-1.29400.
