Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.08672
Opening: 1.09276
Chg. % of the last day: +0.53
Daily range: 1.09211 – 1.09511
52-week range: 1.0366 – 1.1616

Yesterday the euro continued to strengthen against the US dollar. The growth of the EUR/USD quotations exceeded 0.5%. Today, there will be no important economic reports from the EU. The attention is focused on Trump’s speech. The US president should voice the details of the tax reform. At the moment, the key trading range is 1.09150-1.09500.

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 below the %D line, which indicates the bearish sentiment on EUR/USD.

We are waiting for the press conference of D. Trump.

Trading recommendations

Support levels: 1.09150, 1.08350
Resistance levels: 1.09500

The previous forecast turned out to be quite accurate. At the moment, the technical pattern on EUR/USD is ambiguous. We recommend opening positions from key levels.

A fairly strong reversal formation of technical analysis – the divergence of price and MACD histogram – has formed on the market. If the price consolidates below the local support level of 1.09150, sales should be considered. The movement is tending potentially to 1.08600-1.08350.

We also do not exclude the further growth of the EUR/USD quotations. If the price overcomes the 1.09500 mark, we recommend you to look for entry points to the market in order to open long positions. The target level of movement is 1.09750-1.10000.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Prev Opening: 1.27954
Opening: 1.28395
Chg. % Of the last day: +0.37
Daily range: 1.28109 – 1.28435
52-week range: 1.1986 – 1.5020

During yesterday’s trading purchases prevailed on GBP/USD. At the moment, the pound is testing the upper limit of the trading range (1.28500). D. Trump’s speech can become a driver for the further alignment of forces on the GBP/USD currency pair.