Forex Weekly Technical Forecast
This Week’s Pairs: EURUSD, GBPUSD, & USDJPY
The pair tried to move higher, but never went so long. An important German survey, fresh inflation numbers and Draghi’s testimony remains out. We have a breakout nearly late September. Worries regarding a hard Brexit and fewer weak data weighed on the euro. PMIs were mostly positive but did not cheer up the financial market. The Fed was at the center of focus point, the rates were left unmodified as we expected, and the door is extend unlock to a hike this yearend. The pair enjoyed the no-hike statement, but this did not stay too long. The Fed made sure it’s on the intrusive side and the ECB is going opposite direction. The greenback also has the safe-haven asset, becoming more significant as the US elections get closer and the chase is tight. EURUSD remains Bearish.
GBPUSD decreased 70 points previous week, as the pair ended at 1.2960 levels. It is the lowest weekly close since last August. There are only nine events this week on this calendar. The market was focus on the Federal Reserve earlier week. As we predicted, the Fed left rates were no changes at 0.25 percent. At the equal time, the Fed broadly indicates that a December hike is a solid possibility. There were no key British releases previous week.
The pair unlocked the week at 1.3012 levels and reached a high of 1.3121 levels late in the week, testing resistance levels at 1.3112. After that the pair retracted and fell to 1.2914 levels. GBPUSD finished the week at 1.2960 levels. The BoE reduced broad hints previously this month that it plans to lower rates next month. In the US, it’s the opposite article, as the Fed could raise rates this yearend if key figures remains steady. So, the greenback should sustain to benefit from monetary divergence. GBPUSD remains Bearish.
The Japanese yen sparkled previous week, as pair gained 160 points. The pair ended the week at 100.72 levels. There are 8 events on the schedule this week. The market focus was on the central banks earlier week. As we predicted, the Fed left rates were no changes at 0.25 percent. At the mean time, the Fed broadly indicates this December rate hike is a solid possibility. The BoJ also held rates, but made few minor alters to monetary policy, with a solid emphasis on combating deflation.
The piar unlocked the week at 102.32 levels. The pair mounted to a high of 102.79 levels as resistance held at 102.83 levels. After that the pair sharply changed its directions, fell to 100.09 levels. The pair bounces back and finished the week at 100.72 levels. The Fed didn’t raise rates at previous week’s meeting, but its stance is hawkish about a rate hike this yearend. The BoJ sustains to resist pressure to adopt additional easing, which as buoyed the yen. If the pair test the key levels of this week, USDJPY remains neutral.