All Blog Entries

[B]A busy week begins with a busy day – US consumer spending is the highlight of today, amongst many releases from around the world. Will we see more devastating figures already today? Or will tension remain high until the Non-Farm Payrolls? Let’s see what’s up for today:[/B]

In New Zealand, economic figures are released early – Trade Balance is expected to turn negative – a deficit of 28 million is expected to follow a few months of surplus.
Later in New Zealand, the NBNZ Business Confidence is an important official release that always rocks the kiwi. It fell to 27.9 points last month, hurting the currency. To close the day, Building Consents, are released, and will show how the housing sector is doing. ...

EURUSD Forecast:
The EURUSD was indecisive on Friday. We are still in bullish correction phase but my major bearish outlook remains intact especially if price break below the rising wedge formation and 1.2680 support area testing 1.2523 – 1.2470 area. On the other hand, if the upside correction continues and price break above the rising wedge, we could see further upside correction testing 1.2825 – 1.2930 region which could be a serious threat to the current bearish outlook.



GBPUSD Forecast:
The GBPUSD attempted to push lower on Friday, bottomed at 1.5443 but closed higher at 1.5512. On h1 chart below we can see price is moving inside a triangle formation ...

[B]Bias:[/B] Risk is for the 109.82 area to be reached but then look for a reversal lower

The break above 108.25 and also the 109.05 pivot resistance almost looks bullish but I have my doubts. Watch the 109.82 area closely and observe for bearish trade set ups. I will be expecting a reversal lower from around this area that should initially see losses down below the 109.25 pivot support and then to the 108.59-94 support area. This should hold on first test for a correction only. Below 108.50 would extend losses through the 108.15 minor pivot support and down to the 107.60-85 pivot support and potentially closer to the 107.11 corrective low.

Only above 110.12 would imply a total reversal - probably in the form ...

EURUSD remains in downtrend from 1.3333, and the bounce from 1.2587 is treated as consolidation of downtrend. Resistance is at the upper border of the falling price channel, as long as the channel resistance holds, downtrend is expected to continue and next target would be at 1.2500 area. However, a clear break above the channel resistance will indicate that a cycle bottom is being formed on 4-hour chart, then further rise towards 1.2921 key resistance could be seen.



Daily Forex Forecast