Weekly Forex Forecast for 16 – 20 January 2017
EUR / USD – EURO US DOLLAR
The currency pair EUR / USD has been growing the third session. During the coming week the currency pair will be traded within the range 1,0339 – 1,0760. The euro is under pressure because of the procedure of the Britain’s exit from the European Union and due to the coming elections in Germany and France.
The data from the USA on the retail sales and inflation in the industrial sector are rather optimistic. The retail sales volume increased by 0,6% in comparison with the forecasted 0,5%. The producers` price rate was at 0,3%, comparing with the forecasted 0,1%.
The quotations of the EURUSD pair are at the level 1,0600, though bulls haven’t managed to stabilize above the lower line of the ascending channel.
RSI is moving to the resistance level. This can cause the correction movement till the level 1,0800. Hence, this week we can expect the price growth till the level 1,0700.
GBP / USD – BRITISH POUND DOLLAR
The currency of Great Britain was being traded very variably during the previous week. The pair GBP / USD dropped till the level 1,2000, then it grew till the level 1,2300.
The Brexit topic is still bothering investors. The expectation of this process is pressing the British currency very much. The risks for the British economy shall grow as well.
The pound was not able to stabilize at the level 1,2300. It is forecasted that the currency pair GBPUSD will test the lower line of the descending channel during this week. The pound may again grow in price.
During this week the currency pair GBP / USD will be traded within the range 1,2100 – 1,2350. The target for the bears is at the lower line of the descending channel. If the currency pair manages to pass the level 1,2300, we shall expect a strong ascending movement.
USD / JPY – US DOLLAR JAPANESE YEN
The currency pair USD / JPY ended the trading week at the level 114,00 with the correction movement. It is possible that the currency pair will move up with the potential target at the level 121,75.
RSI is testing the lower line of the ascending channel, this also indicates that the growth is possible. If the currency pair USDJPY manages to pass the lower line of the ascending channel, the quotation drop till the level 109,60 shall be expected.