Weekly Forex Forecast for 26 – 30 December 2016
EUR / USD – EURO US DOLLAR
Before Christmas and the New Year traders close long-term deals on the dollar. The currency pair EUR / USD grew above the level 1,0400. Though, middle-term and long-term forecasts for the dollar stay bearish. The strong positions of the American currency in the market are guaranteed.
The changes in the monetary policy of the European Central Bank and the FRS of the USA also influence the US dollar in a positive way.
The euro price reached the minimum, but bears did not manage to keep their positions.
Relative Strength Index indicated the possibility of the correction movement development. If the currency pair EURUSD manages to grow above the level 1,0500, then it can grow to the level 1,0700.
Though, it is also probable that the currency pair will return to its minimum and move to the level 1,0300.
GBP / USD – BRITISH POUND DOLLAR
The British currency is weak. The profitability of British stocks is dropping. This influences the British pound in a negative way.
Though the GNP is above the forecasted value (0,6% against 0,5% forecasted), the negative payment balance is lower than forecasted (25,5 mlrd of British pounds against 28,3 mlrd of British pounds forecasted) give hope that the situation will improve.
The currency pair GBP / USD passes the support level 1,23. This indicates that there is a possibility that the movement can change to the descending one. RSI is falling. This indicates that the currency pair GBPUSD can test the support level.
The American currency is expected to grow till the level 1,2150
USD / JPY – US DOLLAR JAPANESE YEN
The currency pair USD / JPY has reached the maximum level since the 4 th February, 2016. The currency pair grew till the level 118,65.
Even though the growth of the currency pair USDJPY is almost sure, the correction movement is still possible.
MACD is in the overbought zone. Most likely, very soon we will be observing the direction change and the correction movement of the currency pair.