[FOREX TIP] AUDUSD Weekly Forex Forecast – 20th to 24th Feb 2017

AUDUSD Weekly Forex Forecast – 20th to 24th Feb 2017

The AUDUSD technical pattern has moved from consolidation into a very tight range zone. But small ranges are always followed by price expansion and the tighter the range the more aggressive the break will be. The stochastic indicator and the AUDUSD price have moved in the opposite directions over the past two weeks creating a massive bearish divergence that warns a reversal is the most probable outcome.

To the upside 0.7696 should act as resistance while the first major level of support comes in at 0.7600. A break below the support level will see a momentum acceleration to the downside and open the door for a much deeper correction.

We have a soft Australian economic calendar that doesn’t have any major risk event that can disrupt the volatility, except the speech held by the RBA Governor Lowe. On Thursday Governor Lowe is due to speak at the Australia-Canada Economic Leadership Forum, in Sydney and on Friday we have Governor Lowe is due to testify before the House of Representatives Standing Committee on Economics, in Sydney.

Previous AUDUSD Weekly Forex Forecast

AUDUSD Weekly Forex Forecast – 20th to 24th Feb 2017 – Bearish

 

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[FOREX TIP] USDCAD Weekly Forex Forecast – 20th to 24th Feb 2017

USDCAD Weekly Forex Forecast – 20th to 24th Feb 2017

The USDCAD is having a hard time breaking below the big psychological number 1.3000 which indicates more ranging activity as long as we trade between 1.3030 support and 1.3212 resistance levels. Once any of these two levels are broken we can expect some trend developments, but until then the most probable scenario is for a rally and a retest of 1.3200 that should quickly fade and see USDCAD returning back inside its price range.

We can note a bullish divergence between the USDCAD price and the stochastic indicator which is why we favor more upside in the short-term. However, a daily break above 1.3212 will open up the door for a retest of the 1.3385 swing high. We have a low level of activity in terms of risk events that can disrupt the USDCAD volatility. Friday, however, traders need to pay attention to the Canadian CPI inflation figures which based on the market expectation are expected to jump higher from -0.2% to 0.3%. The jump in inflation expectation is due to the rise in price in the energy sector.

Previous USDCAD Weekly Forex Forecast

USDCAD Weekly Forex Forecast – 20th to 24th Feb 2017 – Bullish

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[FOREX TIP] GBPUSD Weekly Forex Forecast – 20th to 24th Feb 2017

GBPUSD Weekly Forex Forecast – 20th to 24th Feb 2017

The GBPUSD weekly close below the big psychological number 1.2500 indicates more bearish pressure in the short to medium-term. However, a daily break and close above 1.2500 can signal a shift in the sentiment and can make the bearish case less likely to unfold. To the downside, the first level of support comes in at 1.2300 followed by 1.2200 which can produce a reaction to the upside. We can note on the stochastic indicator a build-up in bearish momentum which is one of the reasons why we favor more the downside as long as we trade above 1.2500.

The UK economic calendar doesn’t have much to offer us in terms of risk events. The only notable economic data are the second estimate of the UK GDP for the last quarter of 2016. The preliminary figures beat expectation as the UK economy grew 0.6% and based on the market consensus we should expect a flat reading. Wednesday we also have the FOMC Meeting Minutes which will provide in-depth insights into the latest FOMC meeting. This is crucial for the interest rate expectations as it will clear the view of whether or not a March interest rate hike is on the table.

Previous GBPUSD Weekly Forex Forecast

GBPUSD Weekly Forex Forecast – 20th to 24th Feb 2017 – Bearish

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