Forex Forecast For EURUSD, GBPUSD, USDCAD, USDJPY – Thursday, May 18

Forecast for the EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.10824
Open: 1.11582
% chg. for the last day: +0.69
Daily range: 1.11208 – 1.11713
52-week range: 1.0366 – 1.1616

On the EUR/USD currency pair there is a strongly pronounced upward trend. Since the beginning of the current week, the euro has added more than 200 points. The US currency is under pressure amid rising political risks in the US. At the moment, the key trading range is 1.11000-1.11700.

Indicators do not send accurate signals. The MACD histogram is in the positive area, but below the signal line, which gives a weak signal to buy EUR/USD.

Stochastic Oscillator has reached the oversold zone, the %K line is below the %D line, which gives a weak signal to sell EUR/USD.

There are no important economic reports from the EU today. We recommend you to pay attention to the following events:
– the number of initial applications for unemployment benefits in the United States (15:30 GMT+3:00);
– the index of production activity from the Federal Reserve Bank of Philadelphia (15:30 GMT+3:00);
– speech by the head of the ECB Draghi (20:00 GMT+3:00).
    
Trading recommendations

Support levels: 1.11000, 1.10150
Resistance levels: 1.11700

At the moment, the technical pattern is ambiguous. We recommend you to open positions from key levels.
In the near future, the technical correction of EUR/USD is possible. If the price consolidates below the round level of 1.11000, sales should be considered. The movement is tending to 1.10500.

If the price overcomes the local resistance of 1.11700, the further growth of the EUR/USD currency pair is possible. The target level of movement is 1.12000-1.12250.

Forecast for the GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.29153
Open: 1.29684
% chg. for the last day: +0.43
Daily range: 1.29365 – 1.29836
52-week range: 1.1986 – 1.5020

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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