Weekly Forex Forecast for 28 November – 2 December, 2016
EUR / USD – EURO US DOLLAR
On Thursday the currency pair EUR/USD fell to its minimum level for many months. Though, it was not a surprise as everything had been forecasted. The volatility stays high. The FRS report ensured the investors that they could still deal with the US dollar.
The further growth of the currency pair EURUSD is in doubt, as the asset is overbought. At the start of the week a slight correction is possible. Traders can try to use it to enter the market and accumulate the assets. Bears cannot pass the level 1,0500.
RSI started growing, the channel line can be tested. The quotations on the currency pair EUR / USD may start growing till the level 1,0650 – 1,0700. Further, the currency price may drop again. If the pair resumes moving upwards, the target for “bears” will move to the level 1,0900.
GBP / USD – BRITISH POUND DOLLAR
The main factor that influences the currency pair GBP / USD is the publication of the data on the VAT in Great Britain. The data was as forecasted, 2,3% per annum.
This quarter was very important for the country, because Brexit has happened. This event caused a significant devaluation of the national currency. Because of this and due to the pessimistic forecasts, the foreign investments are decreasing. Though, all those events have influenced the economy of Great Britain in a positive way. The inflation level grew as well as the demand has grown, the banking sector started developing.
Quotations for the GBPUSD stayed in the same level. Moving averages stay above the trend line. If this movement stays, then the next week the price can renew the local maximum values.
The price has tested the lower line of the descending channel several times. But bears haven’t managed to keep the ascending movement. Most likely, the price will grow above the 1,2600 level.
USD / JPY – US DOLLAR JAPANESE YEN
The currency pair USD / JPY reached the level 113,00 at the end of the trading week and was going to grow further. For now, we are expecting the growth of the currency pair USDJPY till the level 115,00 and above. But the correction to the level 110,00 is also possible. There, the currency pair USDJPY will test the upper line of the ascending channel.
If the quotations of the pair drop below 115,00 level, that can be the sign of the descending correction.