Weekly Forex Forecast for 7 – 11 November 2016
Summarizing the views of several dozen analysts from the world leading banks and brokerage firms, as well as the forecasts made on the basis of a wide variety of methods of technical and graphical analysis, we can say the following:
In anticipation of the upcoming presidential elections in the United States on Tuesday, 8 November, it is a thankless task to make any forecasts on dollar pairs. That is why more than 60% of the experts just shrug speaking about the near future of EUR / USD. As for the indicators, they almost unanimously insist on the growth of the pair, speaking with one voice with those analysts who predict the fall of the dollar by more than 1000 points in case of Donald Trump’s victory. But, judging by the fact that 85% of the experts expect the growth of the dollar in the medium-term forecast, they are inclined to believe that Hillary Clinton will become US President. In this case, according to them, EUR / USD can go down about 500 points and reach the mark of 1.0600.
According to analysts, the future of GBP / USD is also quite vague. About 50% of them together with indicators look to the north, 35% – to the south, and the views of the remaining 15%, supported by the graphical analysis on D1, direct to the east. It should be said that there is no any consensus in the medium term. Some clarity will appear only on the results of the American elections. But, in this case, there may be serious corrections of the trends depending on the situation with the UK withdrawal from the European Union.
USD / JPY. The experts have split equally, one half of them- for the growth, the second half – for the fall, the reasons are clear and have been described above. As for the longer term outlook, almost 70% of analysts believe that the dollar will strengthen and the pair will reach at least the zone of 106.00-107.00.