Forex forecasts and market outlooks

Today during the Asian session, the USD/CAD pair is slightly declining, correcting after an uncertain growth yesterday. Macroeconomic statistics from the US and Canada released on Tuesday were rather poor.

EUR is trading near zero against USD during today's Asian session, hovering at 1.1850. The day before, EUR managed to demonstrate moderate growth against USD and even updated local highs since September 10, but the "bulls" failed to consolidated at new levels (at 1.1900).

The pair may grow.

On the daily chart, the third wave of the higher level (3) develops, within which the wave 1 of (3) forms. Now, the fifth wave of the lower level v of 1 is developing, within which the wave (iii) of v has formed, and an upward correction is developing as the wave (iv) of v. If the assumption is correct, the pair will grow to the levels of 0.9242–0.9302. In this scenario, critical stop loss level is 0.8998.

The pair may fall.

On the 4-hour chart, the first wave of the higher level (1) of C develops, within which the wave 1 of (1) formed, and a downward correction started to develop as the second wave 2 of (1). Now, the wave a of 2 is developing, within which a local correction has formed as the wave (ii) of a. If the assumption is correct, the pair will fall to the levels of 0.6965–0.6682. In this scenario, critical stop loss level is 0.7415.

At 08:00 (GMT+2), the UK data on the consumer price index for August will be released. It is the main indicator of the inflation rate in the country which determines the change in the level of retail prices for a certain "basket" of goods and services: food, transport, utilities, health care, and so on. It has a significant influence on monetary policy decisions. It is expected that the consumer price index will decline by 0.6% MoM and grow by 0.1% YoY.

At 15:15 (GMT+2), the US data on changes in the level of industrial production for August will be released. The indicator reflects the volume of production at plants and factories. The value is expected to increase by 0.8% MoM. A high value may indicate inflation expectations and, therefore, an imminent rate hike, so a high score strengthens the US dollar, while a low value weakens it.

On the 4-hour chart, the lateral trend remains. The instrument is consolidating at the upper line of Bollinger Bands; the indicator cloud is expanding, an uptrend is likely to form in the short term. MACD histogram is near the zero level, its volumes are minimal; the signal line is directed horizontally without forming a clear signal to enter the market. Stochastic is in the neutral zone, demonstrating lateral movement.

At 11:00 (GMT+2), EU Q2 data, reflecting the short-term change in the average cost of a working hour will be released. An increase in the indicator may indicate an increase in prices for goods and services in the future.

The pair continues to be in a global downtrend, but is strengthening locally on the backdrop of positive statistics, trading at 1.2870.

The USD/CHF pair is in a global downtrend and is trading at 0.9060.