[FOREX TIP] USDCHF Monthly Forex Forecast for April 2018

USDCHF Monthly Forex Forecast for April 2018

Technical Outlook: The USDCHF currency pair has been posting a modest rally ever since price action managed to breakout above the 0.9470 – 0.9433 level of resistance. The breakout off this resistance level was met with the doji candlestick followed by a bearish decline on Thursday. In the near term, we expect USDCHF to dip back to the breached level of 0.9470 – 0.9433 to establish support. A reversal off this level could signal further gains targeting 0.9715 – 0.9681. In the event that USDCHF slips belo this support level we can expect to see further declines with price action consolidating within the breached resistance level and the previous lows that were formed.

Fundamental Outlook: The Swiss franc will see a quiet month ahead with no major events scheduled. Following the SNB’s meeting last quarter wherethe 3-month LIBOR rate was left unchanged, most of the flows in USDCHF will be determined by the data from the United States. With no Fed meeting scheduled this month, investors will focus on the advance quarterly GDP report coming out later in April. This could potentially shed light into the state of the U.S. economy during the first three months of the year. The U.S. economy is expected to maintain its upward trend of around 2.5% average quarterly GDP growth and this could build up into the next month’s Fed meeting.

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USDCHF Monthly Forex Forecast for April 2018

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[FOREX TIP] USDJPY Monthly Forex Forecast for April 2018

USDJPY Monthly Forex Forecast for April 2018

Technical Outlook: The USDJPY was seen initially slipping below the 105.44 – 105.14 level of support but price action quickly recovered from this level following the bullish engulfing pattern that was formed. This was later seen by a stronger bullish candlestick off the support level. The near term consolidation could signal that price action will see some pullback ahead of further gains. A close above the previous high formed at 106.820 level of resistance could signal further gains. Watch for price action to briefly retest the support level where a potential right shoulder could be formed. A reversal off the support could signal minimal gains toward 108.14 level.

Fundamental Outlook: The sentiment in the Japanese yen is most likely to be influenced by the global themes playing out. The Japanese yen continues to remain in favor especially amid rising uncertainty in the global markets. On the economic front, the start of April will see the release of the quarterly Tankan manufacturing survey results. Manufacturing companies have been seen slowly improving their outlook and this could result in a positive beat on the estimates. The Bank of Japan will be holding its monetary policy meeting later in April. The central bank is expected to keep interest rates and its QE program unchanged. However, the recent uptick in consumer prices, albeit still far away from the BOJ’s 2% inflation target rate could keep market speculators bullishly bid on the yen.

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USDJPY Monthly Forex Forecast for April 2018

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[FOREX TIP] EURUSD Monthly Forex Forecast for April 2018

EURUSD Monthly Forex Forecast for April 2018

Technical Outlook: The EURUSD maintained a range within 1.2443 and 1.2240 levels for the most of last month. Price action continues to consolidate within these levels and suggests that there could be a potential breakout from this range in the month ahead. We could see some short term gains in price as EURUSD continues to push ahead to thee upside within the broader triangle pattern that is evolving near the top end of the rally. A close above 1.2443 could signal further gains to the upside with the potential for the euro currency to post fresh highs. However, in the event of a reversal the declines are likely to stall near the low end of the support at 1.2240.

Fundamental Outlook: The month ahead will see a relatively quiet month following the close to the first quarter data. With the ECB seen hold interest rates steady, focus remains on the fundamentals from the region. Recent consumer price index data suggested that headline inflation might have increased in the month of April. This could reflect in some positive sentiment in the common currency. With most of the domestic issues now a thing of the past, the focus will remain on the global trade uncertainty led by Trump’s policies. The markets are cautious as the potential for the trade uncertainty could trigger into a global trade war with Europe likely to be affected. The only main event coming up in April is the ECB’s monetary policy meeting but no changes are expected from the central bank this month.

 

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EURUSD Monthly Forex Forecast for April 2018

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