Currency Rates Forecast – Forex Forecast – Analysis of Forex Trends
Forex Trends – Currency Rates Forecast: week 7/15/12 – 7/20/12
EUR/USD: The downtrend is still intact.
No major surprises in the past week and the price behaved as expected. The pair retracted from the multi-year low last Friday. The technical indicators show that the recent downtrend is very much alive and is not very powerful at this point. It means the chances are we will see the price sticking around 1.2250 for a little bit.
The “bigger picture” is bearish at this time. Again, the indicators suggest that the downtrend is still here just is not very powerful. Possibility of unstable volatility is significant for the next couple days.
Range between 1.2150 and 1.2300 is likely for this week – oversold condition below 1.2150 and overbought above 1.2300.
Common indicators should be fairly accurate in pointing to the direction of the price on the hourly or shorter charts.
Update 07/17/12: No corrections needed so far.
GBP/USD: The downtrend is still alive.
The pair gained about 150 pips last Friday. On par with our prior analysis. The rally is likely over for now. The price likely to hang in the vicinity of 1.5550 for a little. Volatility likely to stay relatively low in the next couple days. Range between 1.5500 and 1.5600 is likely for this week. The longer outlook has not changed and still is bearish at this time.
Update 07/17/12: The downtrend has paused for now. “The center of gravity” moved north about 50 pips.
USD/CHF: Uptrend is still here.
The pair acted pretty much as expected during the last week. Indicators point that the uptrend is still here. The dip is over and the price likely to stick around 0.9800 level for a little bit. For the next week the price likely to stay within 0.9750 – 0.9850 range, and unlikely to deviate very far from these levels. The longer outlook is still bullish at this time.
Update 07/17/12: No major surprises for now.
USD/CAD: Same sideways action likely.
The price acted as expected during the last week. No signs of a new uptrend can be seen at this time so the chances are the same sideways action will continue next week. The price likely to hang in the vicinity of 1.0150 for a while and likely will stay within 1.0100 – 1.0200 for the next week. The indicators still show a downtrend condition so the longer outlook is still bearish at this time.
Update 07/17/12: So far everything as predicted more or less.