[FOREX TIP] GBPUSD Weekly Forex Forecast – 22nd to 26th May 2017

GBPUSD Weekly Forex Forecast – 22nd to 26th May 2017

The GBPUSD has successfully managed to break and close above the 1.3000 big psychological number. The weekly close above 1.3000 adds further strength to the bullish case, however, in the short-term, we can still see a break back below 1.3000 and retest 1.2940 intraday support level without to alter the upward trend. The stochastic indicator is already in the overbought territory and so we should expect at least some consolidation before the bullish trend to resume. To the upside the next resistance level is the 1.3100 round number followed by 1.3170 intraday support level where we can expect a high to be formed.

On the UK economic calendar the first risk event is on Tuesday when we have the Inflation Report Hearings were BOE Governor Carney will testify on inflation and the economic outlook before Parliament’s Treasury Committee. Wednesday we have the FOMC Minutes which can give traders further insights into the Fed’s interest rate outlook. On Thursday the UK second estimate GDP figures are scheduled to be released and it can be the source of some market volatility.

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GBPUSD Weekly Forex Forecast – 22nd to 26th May 2017

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[FOREX TIP] USDCHF Weekly Forex Forecast – 22nd to 26th May 2017

USDCHF Weekly Forex Forecast – 22nd to 26th May 2017

Technical Outlook: USDCHF closed on Friday right at the 127.2% Fibonacci extension level from the descending triangle pattern. This signals a possibility of a reversal back to the broken support level near 0.9894 – 0.9861 where resistance could be formed. Establishing resistance here will mean that price could potentially reverse and continue the decline down to 0.9564 eventually.

Fundamental Outlook: A slow week from Switzerland will see the USDCHF looking to clues from the United States. It is a rather busy week for the U.S. dollar which will see the FOMC meeting minutes coming out on Wednesday. The minutes are expected to confirm the Fed’s hawkish view and reaffirm the rate hikes for June. Later in the week, on Friday, the second estimates for the first quarter GDP is expected to see a modest revision. The U.S. dollar closed on a weaker note last week but the economic developments next week could help the currency to regain some of the losses.

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USDCHF Weekly Forex Forecast – 22nd to 26th May 2017

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[FOREX TIP] USDJPY Weekly Forex Forecast – 22nd to 26th May 2017

 

USDJPY Weekly Forex Forecast – 22nd to 26th May 2017

Technical Outlook: The USDJPY broke down sharply and the failure to post a rebound on the hidden bullish divergence saw price break down lower to a 3-week low. Price action has formed a bearish flag in the process with minor resistance seen forming at 111.65.A break down below 110.79 will trigger further downside with the minimum downside target seen at 108.945. However note the strong support level formed at 110.14 – 110.04 which could stem the declines. A rebound off this level will keep USDJPY range bound within 111.65 resistance level.

Fundamental Outlook: A rather quiet week from Japan will see the release of the trade balance numbers and flash manufacturing PMI. Last week, Japan’s quarterly GDP report was released which showed that economic activity advanced driven by an increase in consumption and exports. Japan’s growth in the first quarter of 2017 rose 2.2% on an annualized basis which marked five consecutive quarterly periods of expansion. It was also higher than the median forecasts of 1.7%. The week ahead will see the inflation figures coming out later the week, but consumer prices are expected to remain subdued.

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USDJPY Weekly Forex Forecast – 22nd to 26th May 2017

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[FOREX TIP] EURUSD Weekly Forex Forecast – 22nd to 26th May 2017

EURUSD Weekly Forex Forecast – 22nd to 26th May 2017

Technical Outlook: EURUSD broke past the 1.0950 resistance level and extended one of the strongest weekly gains. By Friday’s closed, EURUSD breached 1.1200 level. However, the gains are unlikely to be supported at this level considering that most of the gains came on account of investor sentiment to the U.S. administrative policies than economic data.

We expect to see EURUSD post a correction back to 1.0950 which is the obvious downside target in price. Watch for 1.1100 which is the most immediate support level that can be tested. Note the bearish divergence on the 4-hour chart and the hidden bearish divergence on the weekly chart, which point to a near term dip in EURUSD. Therefore, it is best not to buy the currency pair at the current levels but to wait for price to decline to 1.0950.

Fundamental Outlook: The euro turned bullish last week breaching the $1.110 handle. The reversal came amid a bout of strong economic data from the eurozone including the GDP which was confirmed at 0.5% on the quarter. Inflation data also confirmed that core CPI rose 1.2% in April.

The U.S. dollar’s weakness partly contributed to the strong gains in the EURUSD. The week ahead is relatively quiet with the German Ifo business climate expected to rise once again. The index is already at a 6-year high. The German GDP figures are also up for revision but no changes are expected. Flash manufacturing and services PMI are due later in the week.

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EURUSD Weekly Forex Forecast – 22nd to 26th May 2017

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