Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.06419
Opening: 1.07305
Chg. % Of the last day: +0.86
Daily range: 1.07127 – 1.07348
52-week range: 1.0366 – 1.1616

Yesterday, the US dollar weakened against the world currencies. This is due to the publication of a rather weak statistics on the US real estate market and a fall in the yield of government bonds. The single currency added more than 90 points. At the moment, the key trading range is 1.07150-1.07350. We are waiting for data on inflation in the euro area.

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 is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment on EUR/USD.

Economic reports from the EU:

– the consumer price index in the euro area (12:00 GMT+3:00);
– the trade balance of the euro area (12:00 GMT+3:00).

Also at 21:00 (GMT+3:00) the Fed’s Beige Book will be published.
 
Trading recommendations

Support levels: 1.07150, 1.06750
Resistance levels: 1.07350

If the statistics on the EU economy is weak, a correction to the 1.06850 mark may develop on the EUR/USD currency pair.

An alternative may be further growth of the EUR/USD quotations. The movement is tending potentially to 1.07750.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.25302
Opening: 1.28394
Chg. % of the last day: +2.20
Daily range: 1.28083 – 1.28605
52-week range: 1.1986 – 1.5020

Yesterday, the pound rose sharply against the US currency. The growth of the GBP/USD quotations exceeded 2%. The currency has reached a round level of 1.29000. This is due to the announcement of early elections in the UK. At the moment, Theresa May’s party is ahead of its rivals. The victory in the elections will strengthen its position in the negotiations with the EU. The key trading range is 1.28100-1.28800.
                               
The MACD histogram is located in the positive area, but below the signal line, which gives a weak signal to buy GBP/USD.

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