Weekly Technical Forecast on 19–23 December 2016
Technical Pair’s for this week: EURUSD, GBPUSD, AUDUSD, & USDJPY.
The pair was dropped sharply on the Fed’s hawkish hike, reducing levels last seen around since 14 years. A key German survey is the key events in the week leading to Christmas party. The Fed increased rates for the 2nd time after the financial crisis & also updated its hike predict for 2017. This catch fire a dollar rally that obvious itself in a little waves, eventually forcing the pair under the 1.046 levels seen in March 2015 itself & back to levels seen in 2003 January. In the euro-zone, data was blended. The German ZEW figure was left unmodified although German PMIs were blended & French ones expectations were positive. We might see some initial consolidation following the big downward movement. An alteration is required but does not change the path. Monetary policy divergence is cleanly to see following the ECB’s dovish, particularly as it gobbles up all bonds. In the US, expectation for fiscal stimulus might last at least awaiting Trump’s inauguration. EURUSD remains BEARSISH.
GBPUSD lost floor for a 2nd straight week, losing more than 100 points. The pair finished at 1.2483 levels. This week’s significant event is Current Account only on the calendar. The US dollar sustained to post broad growth, buoyed by the Fed Reserve’s quarter point rate hike to 0.50 percent. This was just the 2nd rate hike since the financial crisis in last 8 years. The Fed was hawkish in its rate announcement & upgraded its hike forecast for next year. This generates a US dollar rally & the pound constantly to lose floor. In a different place, US retail sales downbeat the expectations, while US CPI came in at 0.2 percent, similar the forecast. In the UK, CPI was growth to 1.2 percent, edging over the forecast of 0.1 percent. Employment figures were strong, as wage growth & jobless claims both positive.
The pair opened the week at 1.2590 levels & mounted to a high of 1.2726 levels, as resistance held at 1.2777 levels. The pair then twisted directions & fell down to a low of 1.2372 levels. The pair somewhat recovered & ended the week at 1.2484 levels. GBPUSD remains BEARISH.
AUDUSD cut down more than 230 points previous week, as the pair finished at the 0.73 levels. There are only 4 events this week’s on the schedule. The Fed raised rates a quarter point, only the 2nd rate hike since the financial crisis in last Eight years. The Fed was hawkish in its rate declaration & upgraded its hike expectations for 2017. This boost a US dollar rally & the Aussie currency fell down sharply. Somewhere else, US retail sales downbeat expectations, although US CPI came in at 0.2 percent, similar the estimates. Australian Employment Change shines with a gain of 39.1 thousand, well over the forecasts.
The pair unlocked the week at 0.7445 levels & mounted to a high of 0.7526 levels. The pair then twisted directions & fell to a low of 0.7262 levels, as support held firm at 0.7222 levels. The US dollar might make additional development in the consequences of the US rate hike. Economic sentiment stays high before Donald Trump taking over in Washington, which might be bullish for the greenback. AUDUSD remains BEARISH.
The pair continued to rally earlier week, increasing 210 points. The pair finished the week at 117.55 levels. This week’s highlight is the BoJ interest rates publish. The US dollar sustained to post broad growth, buoyed by the Fed’s quarter point rate hike to 0.50 percent. This was just the 2nd rate hike since the financial crisis in the year 2008. The Fed was hawkish in its rate declaration & upgraded its hike expect for next year 2017. This bolstered a US dollar rally & the yen undergo another hard week.
In Japan, the Tankan indices were solid & met forecasts. The pair opened the week at 115.40 levels & dropped to a low of 114.60 levels. The pair after that changed directions & mounted to a high of 118.65, as resistance held firm at 118.80 levels. The pair ended the week at 117.55 levels. USDJPY remains BULLISH.