Weekly Technical Forecast on 9-13 January 2017
Technical Pair’s for this week: EURUSD, GBPUSD, AUDUSD & USDJPY.
The pair slipped to fresh 14-year lows in awakens of 2017 but improved very quickly credits to flaws in the USD. The 2nd week of January features trade balance & industrial output measures. Data in the euro-zone has been moderately encouraging, with a major drop in German unemployment & a rise in inflation, particularly in Germany. Retail sales fail to see expectations, but this did not prevent the euro. In the US, data had a superior start with an excellent report from the manufacturing sector but then turn into bitter with ADP. The meeting minutes from the Fed harm most, as they shows that Yellen & co. got a bit in front of themselves with prospects for stimulus from Trump. The final word went to the dollar, with the NFP report was wages are up 2.9 percent, causing talk about inflationary pressures. Although euro-zone data looks improved, monetary &d fiscal divergence leaves more space to the downside ahead of Trump’s inaugural ceremony. Still, with one more week left, the pair might stabilize following the fresh gains. This week’s EURUSD remains NEUTRAL.
The pair recorded burly losses previous week, cuts down more than 150 points. The pair finished at 1.2264 levels. This week’s major event is Manufacturing Production. It’s been a eventful start to the New Year. The ISM Manufacturing PMI was better & beat the expectations. Employment figures were a blend, as wages borders higher but NFP payrolls fell significantly. The Fed meeting minutes were watchful, as policymakers wait to see how the financial system will respond to Donald Trump’s monetary policies. In the UK, all 3 PMIs pointed to growth & positive, but the pound was powerless to capitalize on these solid publishes.
GBPUSD unlocked the week at 1.2334 levels & suddenly fell to a low of 1.2192 levels, testing the resistance levels at 1.2202. The pair then upturned directions & mounted to a high of 1.2435 levels. The pair ended at 1.2264 levels. The US economy starts 2017 in very well shape, in addition to president-elect Trump has assures increased fiscal spending & tax cuts, which might add to inflation. If this situation materializes, the Fed might have to step in with a rate hike in near the beginning of 2017, which might send the US dollar still higher. This week’s GBPUSD remains BEARISH.
The pair placed modest gains earlier week, finishing at 0.7276 levels. This week’s major event is Retail Sales. In US, the ISM Manufacturing PMI was improved & taken out the expectations. Employment figures were a blend, as wages edged superior but NFP payrolls fell noticeably. The Fed meeting minutes were vigilant, as policymakers wait to see how the financial system will respond to Donald Trump’s monetary policies. Australia astonished the markets with a trade excess, the primary since March 2014.
The pair opened the week at 0.7212 levels & rapidly reached a low of 0.7165 levels, as support held firm at 0.7148 levels. The pair after that reversed directions & mounted to a high of 0.7357 levels, testing the resistance levels at 0.7223 levels. The pair ended the week at 0.7276 levels. AUDUSD this week’s remains BEARISH.
The pair fell down as low as the 115 levels, but finished the week almost unmoved, at 116.9 levels. This week has 6 events on the calendar. In Japan, Final Manufacturing PMI enhanced & wipe out the expectations. The pair unlocked the week at 116.74 levels & mounted to a high of 118.60 levels, as resistance held at 118.80 levels mentioned last week. The pair then upturned directions & fell to a low of 115.05 levels. The pair bounces back at the end of the week, finishing at 116.9 levels. The US economy moves into 2017 in very well shape, & new president-elect Trump has assures increased fiscal spending & tax cuts, which might increase inflation. This week’s USDJPY remains BULLISH.