Forex Majors – Technical Overview And Weekly Predictions
Germany’s jobless rate falls to the lowest since the Reunification in 1990, British MPs are getting set to vote again on a Brexit deal and the Fed decided to slow down the pace of interest rate hikes. Volatility is a guarantee amid these turbulent times, let’s take a look at the Forex majors and see where they may be headed for the coming week.
EUR/USD – Technical Outlook
Although the German unemployment rate dropped to 4.9% from the previous 5.0%, which makes it the lowest since the 1990s, the Euro failed to post any type of recovery and the pair dropped into support. After the failed break of the long term bearish trend line, the pair started to slide and is currently trading right on support at 1.1216, with little to no bullish pressure. This support is likely to crumble, making way for an extended drop into 1.1176 area and possibly into the longer term support at 1.1120. The daily MACD has just crossed bearish, strengthening the possibility of an extended drop. To the upside, the first resistance is located at 1.1300 and as long as it holds, all upside moves should be short lived.
GBP/USD – Technical Outlook
The Pound is sliding lower amidst more Brexit drama, with MPs getting ready for yet another vote later today. The pair is approaching a bullish trend line which coincides with the 100 days Exponential Moving Average and the way price behaves here will determine the direction for the next week. A break of this support zone will show increased bearish pressure and will probably take price into 1.2790 – 1.2800 support, while a bounce will make 1.3365 the next target. Keep in mind that the result of the Brexit vote could accelerate or hinder these scenarios.
USD/CHF – Technical Outlook
At the time of writing the pair is trading at 0.9960, with very low volatility over the last few days and an overall bearish bias. After creating a triple top at 1.010, price fell down quickly and moved below the 100 days EMA before finding minor support at 0.990. The small bounce up seen at said support doesn’t seem solid enough to take price into 1.010 area and should be considered a simple correction after a strong drop. Once the correction is complete, the pair will likely attempt to break the long term bullish trend line, which could happen as soon as next week.
USD/JPY – Technical Outlook
The last couple of days have been bullish for the pair, after a bounce at 109.80 support, but overall USD/JPY is showing mixed signals and printing indecision candles. The pair posted gains after the touch of support and is currently trading at 110.80 but upwards momentum may dissipate if the bulls cannot quickly overcome resistance represented by the 100 days EMA. The last few candles show long wicks, which is a sign of indecision and possibly rejection, so if we don’t see a climb above 111.00 and above the EMA, the chances for a drop through 110.00 – 109.80 support will increase in the coming week.