LeTechs Forex Blog - Weekly Forex Technical Outlooks on 5-9 December 2016

05 Dec

Weekly Forex Technical Outlooks on 5-9 December 2016

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Weekly Technical Forecast on 5–9 December 2016

Technical Pair’s for this week: EURUSD, GBPUSD, AUDUSD, & USDJPY.

EURUSD

The pair handled its range as we moved into the last month of the year 2016. The ECB meeting only left, right & center this week, but assuredly not the only event, in a week that begin with the fallout from the Italian referendum. Euro-zone inflation stayed mediocre, not supporting the euro. Fears about the Italian referendum also pushed. In the US, GDP came out at an positive 3.2 percent according to the revised data. Also, consumer confidence taken out the forecasts. The NFP was blended in job gains were average but wages depressed. Yet, the dollar seemed to consolidate its growth seen in November itself. In the environment now, the ECB is likely to sustain its QE, keeping the force on the euro & maintaining the monetary policy distinction with the FED. This week EURUSD remians BEARISH.

GBPUSD

The pair relish a superb week, gaining 240 points. The pair ended at 1.2717 levels. There are 9 events this week on the calendar. In the UK, Manufacturing & Construction PMIs pointed to increase. The BoE published its Financial Stability Report & said that it sees global risks as a conclusion of the Trump US election, which might have poor repercussions for the British financial system. In the US, the economy sustains to extent at a brisk clip. Preliminary GDP sparkled in 3rd Quarter with a growth of 3.2 precent, beating the forecast of 3.0 percent. Consumer Confidence data easily wipe out the anticipations. Employment figures were blended, as Nonfarm Payrolls met the predictions, but wages decreased.

GBPUSD unlocked the week at 1.2479 levels & quickly fell to a low of 1.2383 levels. The pair then changed directions & jumped upwards throughout the week, climbing to a high of 1.2736 levels, as resistance held at 1.2778 levels mentioned previous week. The pair finished the week at 1.2717 levels. This month rate hike from the Fed a virtual confidence, sentiment towards the greenback is supportable. As Britain gears up for aggreement over Brexit, markets stays concerned that fallout from the nation’s departure from the EU will affect the economy. This week GBPUSD remians BEARISH.

AUDUSD

In Australia, key indicators were blended. Private Capital Expenditure palced a sharp decrease of 4.0 percent, compared to reduce of 2.8 percent. Retail Sales edged lower to 0.5 percent, but taken out the forecast of 0.3 percent. In the US, Preliminary GDP sparkled in 3rd quarter with a growth of 3.2 percent, beating the expectations of 3.0 percent. Consumer Confidence data easily wipe out the forecasts. Employment figures were blended, as Nonfarm Payrolls met anticipations, but wages decreased.

AUDUSD unlocked the week at 0.7442 levels & rapidly reached a high of 0.7497 levels, as resistance held firm at 0.7513 levels. The pair after that twisted directions & cut down sharply, reaching a low of 0.7361 levels. The pair then pushed higher, finishing the week at 0.7440 levels. The RBA is predicted to maintain rates at 1.50 percent, although the Fed is virtually confidence to raise rates upcoming week. So, monetary divergence sustains to support the US dollar. So, the Aussie will likely stays under pressure with the Fed likely to narrow monetary policy. This week AUDUSD remains BEARISH.

USDJPY

USDJPY sustained to post some gains previous week, as the pair reached its highest levels since February. The pair ended the week at 113.30 levels. There are 9 events this week’s on the schedule. In Japan, consumer spending figures stands weak, as Household Spending & Retail Sales both placed decreases. In the US, Preliminary GDP sparkled in 3 quarter with a gain of 3.2 percent, beating the forcaste of 3.0 percent.

USDJPY unlocked the week at 112.65 levels & fell to a low of 111.35 levels, testing support levels at 111.45 mentioned earlier week. The pair then twisted directions & mounted to a high of 114.83 levels. The pair gave up few gains & finished the week at 113.36 levels. With a Fed rate hike considered a virtual confidence this month for US, sentiment stays very positive towards the US dollar. The yen cut down regarding 8% in November and the slide might sustain. This week USDJPY remains BULLISH.

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