Easter Week Forex Predictions You Should Read Now
Forex Majors – Technical Overview And Weekly Predictions
Trading volumes remain thin as major FX hubs across Europe and the US are closed in celebration of Good Friday and the Easter Holiday. However, the US Dollar remained strong across the board and made solid advancements against its main counterparts this week. Whether these gains will extend into next week remains to be seen so let’s have a look and gauge the most probable scenarios.
EUR/USD – Technical Outlook
Currently trading at 1.1245, the pair had a bearish week, partly due to mixed German economic data but US Dollar strength played a big role as well. The bulls failed several times to break the resistance at 1.1325, which resulted in a sell-off that took price below the 100-period Exponential Moving Average on the 4-hour chart. This pair is now in close vicinity of support at 1.1215.We will likely see a touch of the mentioned support but low volumes will be present through the first part of the coming week. This may generate alternating periods of high and low volatility, with choppy price action, until the holiday is over.
GBP/USD – Technical Outlook
This pair is trading right on the 1.3000 psychological level after breaking a bullish trend line. There is a chance of an extended drop so be careful with your trades. The break of the long term bullish trend line (daily chart above) marks an important victory for the bears and opens the door for a touch of 1.2800 – 1.2790. However, such a move will take more than one week unless something outstanding happens on the political scene. A quick climb above the 100 days EMA (daily chart above) and above the trend line would invalidate a bearish scenario for the time being.
USD/CHF – Technical Outlook
The US Dollar posted solid gains against the Swiss Franc over the last 4 weeks. This week the pair finally managed to break the long term resistance located at 1.010. The weekly chart above shows the pair edging above 1.010 resistance and, although the week is not over, this looks like a true break. If we get a weekly close above resistance the 1.01 level will turn into support. Once confirmed that will open the door for an extended climb with 1.033 as target. On the lower time frames, the pair is overbought which indicates that a retracement may be in order before other significant advances take place.
USD/JPY – Technical Outlook
This pair is currently trading at 111.90 and in close vicinity of the previous resistance at 112.15. Recent price action created a double top at 112.15 and will determine the next medium-term direction. A bounce lower will probably take the pair into the 100 days EMA and into the support at 110.90 – 111.00, while a break will open the door for 113.00. It’s possible that either scenario will take more than a week to develop, considering the low volumes generated by Easter celebrations, so don’t get too excited by near-term price action.
