Weekly Technical Forecast on 26–30 December 2016
Technical Pair’s for this week: EURUSD, GBPUSD, & USDJPY.
The pair soaked to fresh lows but rebounded before the Christmas holiday. The week of Christmas & New Year’s is pretty glow. Germany’s IFO institute showed positive confidence in the continent’s highest economy, & also other numbers such as the Current Account came out quite well. The disposition was dampened by the attack in Berlin that stayed everyone of the election year. In the US, GDP growth taken out expectations with 3.5 percent & also durable goods orders looked hopeful. Still, personal spending & income fail to spot estimates. End-of-year portfolio adjustments might trigger some unreasonable moves, but they could be partial. The trend stands to the downside of monetary policy divergence is starker than earlier. Yet, the next shift might wait for 2017. EURUSD remains NEUTRAL.
The pair sustained to slide, as the pair cut down for a 3rd week in a row, losing more than 200 points. The pair closed at 1.2277 levels, its lowest weekly close since last October. There are only 3 events this week on the calendar. In the US, GDP Q3 growth positive with an excellent reading of 3.5 percent but durable goods orders were blended. Consumer confidence also looked spiky, rising for a 2nd straight month. In the UK, Final GDP came in at 0.6 percent beat the forecast of 0.5 percent.
The pair unlocked the week at 1.2485 levels & quickly jumped to a high of 1.2503 levels, as resistance held at 1.2512 levels. The pair finished the week at 1.2278 levels. Trading volumes are typically light the week of Christmas & there are only a handful of major events on the schedule. So, we’re not likely to see any important move from the pair. GBPUSD remains NEUTRAL.
The pair posted unassuming losses previous week, as the pair ended the week at 117.16 levels. This week’s key events are Household Spending & Tokyo Core CPI. US indicators were frequently positive earlier week. GDP Q3 growth positive with an excellent reading of 3.5 percent but durable goods orders were blended. Consumer confidence also looked spiky, rising for a 2nd month in a row. In Japan, the BoJ gone interest rates at -0.10 percent & the yen go down following BoJ Governor ruled out raising rates as inflation stays well short of the target of 2%.
The pair unlocked the week at 117.82 & rapidly fell to a low of 116.54 levels, testing the support levels at 116.88. The pair after that twisted directions & mounted to a high of 118.26 levels. The pair was powerless to merge at these levels & clogged the week at 117.15 levels. While trading will be glow in the US this week, it’s business as standard in Japan, so we might see the dollar recommence its rally if Japanese indicators don’t meet anticipations. USDJPY remains Bullish.