Currency Rates Forecast – Analysis of Forex Weekly Trends

Currency Rates Forecast: 6/10/12 – 6/15/12

Currency rates forecast – an overview of the trends in the forex market for the past week with likely developments for the next week.

 
EUR/USD: The downtrend has ended and signs of the new uptrend can be seen at this time.

The pair has finished the last week virtually flat – mostly as expected – no major surprises here. “Fundamental part” of the picture was a mix of weak US jobs data and hopes for the “Spanish rescue,” with the news of the Spanish bailout helping “risk appetite,” which normally push the buck lower. No signs of the new uptrend could be clearly seen until the later part of the last week.

The pair will look overbought a bit above 1.2650 so we likely will see a dip in the next couple days, perhaps to the vicinity of 1.2450. The “bigger picture” is bullish at this time so the chances are that the price will move higher after the dip. Again, the indicators suggest that the new uptrend is here. Possibility of rising and unstable volatility is still significant during the incoming week.

Range between 1.2650 and 1.2450 is likely for this week – oversold condition below 1.2450 and overbought above 1.2650.

Common indicators should be fairly accurate in pointing to the direction of the price on the hourly or shorter charts.
 

GBP/USD: The downtrend is taking a break for now – the price flattening out.
 
The pair gained less than 100 pips during the last week following a sideway action on par with the analysis. The downtrend is over but the same sideway scenario likely to continue this week. We will likely see the price hanging around 1.5550 during the next couple days, naturally volatility will not change much. The pair likely will start to look oversold a bit below 1.5400 so a range between 1.5400 and 1.5600 is likely for this week. The longer outlook is bullish at this time.
 

USD/CHF: Rally as a part of downtrend is likely.
 
The pair stayed in a narrow range during the last week – as expected pretty much. Indicators point to a new downtrend but the price likely to rally for the next couple days. The pair likely will look overbought a bit above 0.9650 – likely top of this rally and unlikely to go higher. For the next week the price likely to stay within 0.9500 – 0.9700 range, and unlikely to deviate very far from these levels. The longer outlook is bearish at this time.
 

USD/CAD: Sideway action likely for the week.
 
The last week sideway action is likely to continue. No signs of a clear trend at this time. The price likely will stay within 1.2000 – 1.3500 range the next couple days and will fluctuate back and forth between these levels. The longer outlook is neutral at this time.

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Currency Rates Forecast – analysis of forex trends