[FOREX FORECAST] USDCHF Weekly – 23rd to 27th Jan 2017

USDCHF Weekly Forex Forecast – 23rd to 27th Jan 2017

Technical Outlook: USDCHF failed to rally back to 1.0188 and instead closed on Friday on a bearish note at 1.0020. A bearish follow through from here could signal further declines towards 0.9934 support while the evolving head and shoulders pattern would be invalidated. However, there is a risk of a pullback considering the fact that USDCHF is near the lower median line where the dynamic support can be found. Therefore, it is best to stay on the sidelines and look for potential selling opportunities from around 1.0188 while looking for possible buying opportunities near 0.9934.


Fundamental Outlook: A slow week from Switzerland, economic data is mostly confined to the UBS consumption indicator and trade balance figures, both of which are unlikely to make much of an impact on the Swiss franc. This would leave much of the heavy lifting to the market sentiment and the U.S. dollar. On the U.S. economic calendar this week, focus will be on Friday where the preliminary GDP report for the fourth quarter will be released. Economists are hoping that the U.S. economy increased 2.1% in the fourth quarter, which is slightly lower than 3.5% in the third quarter.


Previous USDCHF Weely Forex Forecast

TLDR: Bearish

from Advanced Forex Strategies

[FOREX FORECAST] USDJPY Weekly – 23rd to 27th Jan 2017

USDJPY Weekly Forex Forecast – 23rd to 27th Jan 2017

Technical Outlook: USDJPY retraced last week as noted but the depth of the retracement has been shallow. Price retraced to only near 115.35 rather than the expected 116.00 level. Still, the retracement came on a hidden bearish divergence back to the support level which was tested for resistance. The following declines will now likely to continue towards the previous low formed near 112.70. Failure to decline to 112.70 could mean a sharper correction. Therefore, if USDJPY pulls back above 115.35 then expect the gains to push the dollar towards 116.00 – 116.50 region. Alternately, to the downside, look for USDJPY to retest 112.70 with the potential to post new declines down to 111.275 marking the initial support level.


Fundamental Outlook: A busy week from Japan next week, economic data focuses on preliminary PMI numbers for the month of January. Later in the week, inflation figures will be coming out. The BoJ’s measure of core CPI is expected to continue to remain weak, rising only 0.1%, compared to the 0.2% increase seen the month before. The Tokyo core CPI and the national core CPI are both forecast to continue to decline. However, there could be an upside surprise considering that higher energy prices have sent inflation higher across some of the major economies.


Previous USDJPY Weekly Forex Forecast

TLDR: Bearish

from Advanced Forex Strategies

[FOREX FORECAST] EURUSD Weekly – 23rd to 27th Jan 2017

EURUSD Weekly Forex Forecast – 23rd to 27th Jan 2017

Technical Outlook: EURUSD has been trading within 1.0700 and 1.0600 last week with another brief test to the support level at 1.0615 – 1.0600. However, this multiple bounce to the support has failed to bring any significant new highs in prices. The bullish flag pattern remains in play although there is scope for EURUSD to correct to the downside in the near term especially after price has broken out from the rising median line. Look for a reversal near 1.0700 in EURUSD which could mean a short term correction back to 1.0615 – 1.0600. A break below this support will extend the declines towards 1.0450. To the upside, if price continues to push higher, then watch for a continuation towards 1.0785, marking the completion of the bullish flag pattern.

Fundamental Outlook: It is a fairly quiet week for the eurozone with most of the economic data focusing on the flash PMI figures. Economists are expecting to see a broad pickup in activity across the board, which is likely to see further evidence of a recovery in the eurozone’s economy. Besides the flash PMI figures, the Ifo business climate data is also coming out this week and is expected to show another positive reading which will also point to the improving economic sentiment in Germany and the Eurozone. With no major market moving events coming up next week, the EURUSD is likely to take its clues from the larger market themes.

Previous EURUSD Weekly Forex Forecast

EURUSD Weekly Forex Forecast – 23rd to 27th Jan 2017

from Advanced Forex Strategies

[FOREX FORECAST] AUDUSD Weekly – 23rd to 27th Jan 2017

AUDUSD Weekly Forex Forecast – 23rd to 27th Jan 2017

The Australian dollar is among the best performing G10 currency posting three consecutive weekly bullish candles. We have close above the 0.7500 big psychological number, but more importantly, we’ve close above 0.7525 swing high. However, at the same time, we can spot a massive bearish divergence between the price and the stochastic indicator which is a clear warning that the uptrend can pause and see a retracement before the next accumulation phase and rally take place.

The first level of support comes in at 0.7450 followed by 0.7400 where we can expect a bounce. To the upside, the next major resistance levels only comes at 0.7740 daily resistance. There are growing speculations that the RBA will move towards a tightening monetary policy as soon as this year. Many of the Wall Street analysts predict that the RBA is on its way to raise rates this year which is part of the reason why we saw such a strong rally since the beginning of the year.

However, when this expectation will face reality we’re expecting to see a rebalancing of those long positions which can be the catalyst for the upcoming sell-off. The RBA is expected to keep rates on hold on Wednesday during the first monetary policy of the year and this can be the catalyst for a AUDUSD retracement.

Previous AUDUSD Weekly Forex Forecast

AUDUSD Weekly Forex Forecast – 23rd to 27th Jan 2017 – Bearish

from Advanced Forex Strategies

[FOREX FORECAST] USDCAD Weekly – 23rd to 27th Jan 2017

USDCAD Weekly Forex Forecast – 23rd to 27th Jan 2017

The USDCAD technical pattern continues to be bearish despite last week’s rally. Only a break above the big psychological number 1.3500 will invalidate the bearish case. While on the long-term USDCAD is in a bullish trend in the short-term we can still see some further consolidation. The stochastic indicator is in oversold conditions which threaten the current up swing wave, however, there is still a possibility of a false breakout above 1.3387 last week’s high before we can see any meaningless retracement.

Any sell-off can be limited in time and price as right at the 1.3150 level we have an important support and above it we have 1.3220 as intraday support. The Canadian economic calendar doesn’t have any major risk event that can distort the market volatility and in this regard, we can expect a very quiet USDCAD exchange rate.

Previous USDCAD Weekly Forex Forecast

USDCAD Weekly Forex Forecast – 23rd to 27th Jan 2017 – Mildly Bearish

from Advanced Forex Strategies

[FOREX FORECAST] GBPUSD Weekly – 23rd to 27th Jan 2017

GBPUSD Weekly Forex Forecast – 23rd to 27th Jan 2017

Last week GBPUSD opening gap followed by a quick rally has produced what in technical terms we refer to as a “V” shape bottom. This is a very powerful pattern that can produce a swing low point and it can be an indication that the bulls are in control. The Brexit fears are already priced in and despite the prospects of a hard Brexit, the British Pound seems ready for a much deeper correction. However, we still need confirmation and a weekly break and close above the 1.2500 big psychological number will be sufficient for the bulls.

The stochastic indicator is showing a buildup in the bullish momentum and only a break below 1.2200 will invalidate the bullish case. We can expect a reaction from 1.2300 intraday support level. To the upside, we have the 1.2432 as intraday swing high which can act as resistance. The UK economic calendar will bring on Thursday the GDP figures for the last quarter of 2016. Based on the market consensus the Q4 GDP figures are expected to shrink to 0.5%, down from 0.6% while the annualized GDP figures are expected to come in at 2.1%.

Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast – 23rd to 27th Jan 2017 – Bullish

from Advanced Forex Strategies