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
Euro is gaining momentum on Tuesday morning in Asia as the U.S. dollar retreats from the 109.00 level. The sudden increase in long positions after the speech of European Central Bank member Philip Lane is working as a tailwind for EUR/USD.
The most widely traded currency pair consolidated in a narrow range in the past week, though made unusual spikes amid the fed jitters. However, the price is currently trading above the range and is up by some 0.36% at the time of reporting. The price action suggests that bulls are chasing the 21-day exponential moving average price, which is located near the 1.0090 mark.
GBP/USD – British Pound US Dollar
The British pound continues to struggle for the second trading session this week with multiple indicators suggesting further downside extension. The risk-sensitive currencies fell apart in the past week due to turbulent sentiment in the market.
Investors are betting on an aggressive rate hike from the Feds whereas The United Kingdom is already in recession. United States central bank is expected to raise the interest rates by at least 50 basis points in September. A daily close below the 1.1700 level will certainly attract more sell-off in the future.
AUD/USD – Australian Dollar US Dollar
The Australian dollar is on the rise after taking the 0.6900 level, a significant resistance zone, on Tuesday. The AUD/USD started the day with a positive posture and is up by some 0.60% after getting acceptance.
The price is expected to trade above the 21-day exponential moving average during the North American session if the dollar index maintained the bearish bias. More and more buyers will join if the current strength in the Australian dollar persists above the 0.69500 level.