Weekly Forex Market Forecast

USDCAD Pair Analysis: (Close Price: 1.3368)

News

The value of the CAD or the loonie has a strong correlation with oil prices. Oil prices made recovery, bouncing on reports that Saudi Arabia and other countries cut their exports to the US. However, this may be a demand rather than supply boost crude oil. All bad news related to CAD already priced in.

Pair Analysis

The USD/CAD pair broke major support 1.3400 and trade below it after US dollar index reach near 96 marks. The pair was trading in a range between 1.3370 and 1.3500. It remained within after the release of US and Canadian employment reports but higher crude oil prices and jobs and inflation data from offset US dollar’s strength.

Technical Outlook

On technical front pair falls sharply in consecutive three days and forms bearish price pattern like black crow in candlestick. Minor support comes around at 38.2% retracement level 1.3327 and 50% retracement level 1.3223.

Name S3 S2 S1 Pivot Points R1 R2 R3
USDCAD 1.3524 1.3561 1.3585 1.3622 1.3659 1.3683 1.372

 

AUDUSD Pair: (Close Price: 0.7114)

News

AUD currency was worst performer in the end of year 2018.AUD/USD pair tested lows of 2015-2016 in thin trading session. Last trading day of week was good for AUD in terms of recovery. Renew US & China trade discussion also support AUD as Australian economy leveraged to Chinese. Strong US jobs data and unemployment rate acts as catalyst to gain for US dollar but fed dovish stance fizzle out its strength.

Pair Analysis

Last week pair traded in wide range of 0.6744 to 0.7124 with pair witnessed flash trade in low volume trade as like in JPY pair. On daily charts pair forms hammer like pattern and recovery from lows of 0.6800 visible. Pair closed above 0.7100.

Technical Outlook

Technically pair forms long leg candlestick on daily charts looks like hammer. Pair shows sign of short pull back from oversold zone. This bounce can lead pair to test level of 0.7170-0.7200 which was earlier support now acts as resistance. Major upside not expected and pair can trade in range of 0.6850-0.7250.

Name S3 S2 S1 Pivot Points R1 R2 R3
AUDUSD 0.6983 0.7007 0.7022 0.7046 0.707 0.7085 0.7109

 

EURGBP Pair: (Close Price: 0.8951)

News

Brexit news and its impact put GBP under pressure for last few months. This pressure has particularly avoided in recent weeks ahead of key vote in the UK Parliament on PM May’s deal. Also possibility of Hard Brexit, UK construction PMI came at 52.8 while manufacturing PMI saw better than expected numbers.

Pair Analysis

To discuss pairs trading move for the last week need to analysis price action. Pair made high of 0.9092 and low 0.8927.Pair taking swing on both sides of 21 days SMA 0.8990.

Technical Outlook

Pair unable to hold above 0.9100 level and dragged pair towards strong support of 0.8930. Meanwhile, 0.9030 can act as immediate resistance for the pair ahead of pushing Bulls to 0.9060-70 area. Pair spends a lot of time here as compared to previous from where it fell to 0.8847. Bullish stance remains open till pair holds 0.8900 levels.

Name S3 S2 S1 Pivot Points R1 R2 R3
EURGBP 0.8816 0.8881 0.8921 0.8986 0.9051 0.9091 0.9156

 

USDJPY Pair: (Close Price: 108.504)

News

Japan released the Nikkei Manufacturing PMI for December, which shows upside in by pointing 52.6 greater than expected. Earlier month data was also revised to 52.50. US economic data also on positive note in terms of NFP (Nonfarm Payroll data) and unemployment rate, The NFP report not as widely viewed by traders as its had divergence from real economy condition. Fed’s head Powell speech, which could shed some light over the future of rate hikes in the US.

Pair Analysis

Pair shows that the risk remains to the downside as the pair continues to trade downside, while technical indicators are losing upward strength well into negative ground and after correcting extreme oversold conditions. Pair made low of 107.55 in a flash crash in thin volume later recovered.

Technical Outlook

Technically pair trade with negative bias and Far from the current level, a critical support comes at around 106.75, where the pair bounced a couple of times after Wednesday’s flash crash. A weekly close below it will open for a steeper decline toward the 105.00 price level.

Name S3 S2 S1 Pivot Points R1 R2 R3
USDJPY 106.07 106.67 107.03 107.63 108.23 108.59 109.19

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