[FOREX TIP] AUDUSD Weekly Forex Forecast – 6th to 10th August 2018

AUDUSD Weekly Forex Forecast – 6th to 10th August 2018

The AUDUSD is trading inside a very frustrating trading range. The current consolidation has been going on for 7 weeks and until we have a clear breakout we should expect more of the same. The best strategy is to wait and react to whichever way we get the breakout. If we break and post a daily close below 0.7300 look for the current bearish trend to extend to the downside.

A break and a daily close above the top of the range 0.7470, but more importantly above the big psychological number 0.7500 can signal that a reversal is set in motion. Above these two levels we have 0. 7560 as the next important resistance level. The Australian economic calendar is full of risk events that can disrupt the market volatility. Tuesday, the RBA interest rate decision can give more clarity to the price action. The RBA is expected to keep rates unchanged. Wednesday RBA Governor Philip Lowe is due to hold a speech and also we have as a proxy risk event the Chinese Trade Balance figures.

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AUDUSD Weekly Forex Forecast – 6th to 10th August 2018

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[FOREX TIP] USDCAD Weekly Forex Forecast – 6th to 10th August 2018

USDCAD Weekly Forex Forecast – 6th to 10th August 2018

The USDCAD broke and posted a weekly close below the big psychological number 1.3000, which gives a strong case for more bearishness in the market. The first important level of support comes at 1.2920 and a close below this level can open the door for more weakness all the way down to 1.2814. On the upside a daily close above the round number 1.3000 can send the USDCAD exchange rate up to 1.3065.

The stochastic indicator is not yet in oversold territory, so we can safely expect the downside to extend more. However, since August is a very slow trading month we can also expect more consolidation until the summer trading period is over. There is only one major risk event scheduled on the Canadian economic calendar. Friday we have the Unemployment rate, which is expected to inch lower to 5.8% versus 6% previous reading.

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USDCAD Weekly Forex Forecast – 6th to 10th August 2018

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[FOREX TIP] GBPUSD Weekly Forex Forecast – 6th to 10th August 2018

GBPUSD Weekly Forex Forecast – 6th to 10th August 2018

The GBPUSD has only managed to post a very weak close above the big psychological number 1.3000, which suggests that the bulls aren’t stepping into the market. On the downside, we can possibly see a break below the previous swing low 1.2955 but even then we can expect the GBP/USD to return back into the previous range. Only a strong daily close above 1.3000 can put the bulls back on the spot and see a retest of the first resistance level 1.3120.

The stochastic indicator is only showing a very moderate oversold reading and until we reach some extreme reading, we can’t expect much from the bulls. On the downside the first important level of support only comes at 1.2810 levels. In terms of risk events, we only have the preliminary GDP figure for the second quarter of 2018. According to the general market consensus, the UK economy is expected to slow down in the 2^nd quarter and only show a 0.1% growth versus 0.2% growth seen in the 1^st quarter of 2018. The Trade Balance figures are also expected to be released the same day.

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GBPUSD Weekly Forex Forecast – 6th to 10th August 2018

 

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[FOREX TIP] USDCHF Weekly Forex Forecast – 6th to 10th August 2018

USDCHF Weekly Forex Forecast – 6th to 10th August 2018

Fundamentals Outlook: The economic calendar for the week ahead takes a quiet turn. No major releases of importance are lined up this week. From the U.S. the producer prices index data is due to come out on Thursday followed by the consumer price index data on Friday. Given the recent slowdown in the core PCE data for the second quarter, investors will be looking for any further clues of potential weakness in the consumer price reports. Elsewhere, data from the Eurozone is limited to the German industrial production and trade balance figures. The eurozone Sentix investor report and factory orders from Germany will be due earlier in the week. A quiet week from Japan will see only the Bank of Japan releasing its summary of opinions.

Chart set up: USDCHF continues to trade sideways with last week’s price action first sending the currency pair lower to test the support at 0.9870. A rebound off this level pushed the currency pair higher as USDCHF was seen testing the resistance level at 0.9962 region.

Key support/resistance levels:
Support: 0.9907; Resistance: 0.9962

Commentary: In the near term, the USDCHF could post declines back to 0.9907. This could potentially mark a right shoulder of the inverse head and shoulders pattern being formed. A rebound off the support could signal an upside breakout. The main resistance is seen at 0.9962.

A successful upside breakout from the neckline resistance level could signal USDCHF to post further gains. The minimum expected target is anticipated to be around 1.0019. However, if USDCHF fails to reverse near 0.9905, the inverse head and shoulders pattern would be invalidated. For the week ahead, the USDCHF currency pair is expected to be flat.

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USDCHF Weekly Forex Forecast – 6th to 10th August 2018

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[FOREX TIP] USDJPY Weekly Forex Forecast – 6th to 10th August 2018

USDJPY Weekly Forex Forecast – 6th to 10th August 2018

Fundamentals Outlook: The economic calendar for the week ahead takes a quiet turn. No major releases of importance are lined up this week. From the U.S. the producer prices index data is due to come out on Thursday followed by the consumer price index data on Friday. Given the recent slowdown in the core PCE data for the second quarter, investors will be looking for any further clues of potential weakness in the consumer price reports. Elsewhere, data from the Eurozone is limited to the German industrial production and trade balance figures. The eurozone Sentix investor report and factory orders from Germany will be due earlier in the week. A quiet week from Japan will see only the Bank of Japan releasing its summary of opinions.

Chart set up: The USDJPY currency pair was seen breaking out to the upside from the descending wedge pattern that formed outside the rising price channel. The gains saw the U.S. dollar testing the previous resistance level above 111.55 before giving up the gains as the currency pair closed back below 111.55 level.

Key support/resistance levels: Support: 110.75; Resistance: 111.55

Commentary: The USDJPY currency pair is expected to post a modest retracement back to 111.55. Establishing resistance level could trigger a short term reversal keeping the currency pair in check. The sideways range around 111.55 and 110.75 is likely to be maintained in the week ahead.

There is a risk of a downside breakout near 110.75 with the descending triangle pattern likely evolving. This is noticed with the lower highs being formed following the bounce off the support at 110.75. A break down below 110.75 could signal a downside move toward the next lower target at 109.50. For the week ahead, the USDJPY currency pair is expected to be bearish.

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[FOREX TIP] EURUSD Weekly Forex Forecast – 6th to 10th August 2018

EURUSD Weekly Forex Forecast – 6th to 10th August 2018

Fundamentals Outlook:  The economic calendar for the week ahead takes a quiet turn. No major releases of importance are lined up this week. From the U.S. the producer prices index data is due to come out on Thursday followed by the consumer price index data on Friday. Given the recent slowdown in the core PCE data for the second quarter, investors will be looking for any further clues of potential weakness in the consumer price reports. Elsewhere, data from the Eurozone is limited to the German industrial production and trade balance figures. The eurozone Sentix investor report and factory orders from Germany will be due earlier in the week. A quiet week from Japan will see only the Bank of Japan releasing its summary of opinions.

Chart set up:  The EURUSD currency pair managed to turn higher over the week as price action briefly tested the resistance level at 1.1740. However, failure to break past this level pushed the currency pair lower. The break down below the previously established support at 1.1627 saw the common currency extending the declines.

Key support/resistance levels: Support: 1.1553; Resistance: 1.1627

Commentary: With the economic data for the week ahead being sparse, the currency pair is expected to maintain its longer term sideways range. The break down below 1.1627 support is now seen pushing the currency pair lower to the next support level at 1.1553. Any rebound is expected to stall near 1.1627 which could now serve as resistance.

The currency pair is expected to continue its consolidation but the declines are likely to stall near 1.1553. A rebound off this level could potentially set the tone for an upside breakout from the longer term range of 1.1700 and 1.1500. However, this breakout needs to be accompanied by strong fundamentals. For the week ahead, the EURUSD currency pair is expected to remain flat within 1.1553 support and 1.1627 resistance.

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EURUSD Weekly Forex Forecast – 6th to 10th August 2018

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