In the Forex Weekly Forecasts segment, we provide critical news and information which helps you to seize the opportunity in the financial market.
EUR/USD – Euro US Dollar
The EUR/USD fell below the 21-day 50-day exponential moving average barrier in the last week to resume its downtrend. The price got underpinned by bears after the relentless rally in the U.S. dollar. From a fundamental perspective, the EUR/USD market traded with a bearish bias and fell over 2% after the International Monetary Fund trimmed its gross domestic product forecast for the Eurozone.
Currently, the price is trading near the 1.000 level, down by 0.34% on Monday morning. The relative strength index indicator is not yet in the oversold region therefore one can expect further hammering in the next few trading sessions.
GBP/USD – British Pound US Dollar
The GBP/USD is sliding lower today with a 0.20% loss as compared to the previous day’s close as bulls are struggling to hold on to the 1.1800 support zone. The pair fell roughly 300 pips or 2.5% in the last week to hit its lowest level in more than one month, below the 1.1830 mark.
Meanwhile, the dollar index which is the benchmark for the value of the U.S. dollar against the basket of major currencies is trading 0.21% higher near the one-month top. The bearish momentum is expected to push the GBP/USD beyond the 1.1800 level in absence of any major economic events this week.
AUD/USD – Australian Dollar US Dollar
The risk-sensitive Australian dollar rebounded after positive news from China went public. According to official sources, China sliced its one-year repo rate from 3.7% to 3.65% which provided a much-needed catalyst for AUD/USD.
In the past week, AUD went through a sharp correction and fell over 3.4% against the U.S. dollar. This significantly large percentage drop in a short period of time was due to interest rate hike expectations from US Federal Reserve. However, AUD/USD price action is rebounding on Monday morning in Asia. Bulls are holding the 0.69100 level and it seems right to accelerate back towards the 0.7000 level in North American sessions.