In the Forex Weekly Forecasts segment, we provide critical news and information which helps to seize the opportunity in the financial market.
EUR/USD – Euro US Dollar
EUR/USD is trying to settle above the next immediate resistance level at 1.05500 level on Monday morning as the dollar index spiked below amid the public holidays in the United States. If bulls fail to take the initiative, then there are chances of another sharp decline.
From a technical perspective, the formation of a strong base can be seen on the daily chart near the current level. The price action is moderately bullish and suggests limited gains in the near term. However, if bears return then the EUR/USD price may extend its downside correction towards the 1.04500 level.
GBP/USD – British Pound US Dollar
The British pound is directionless during the course of the trading session on Monday as investors remain uncertain regarding the British economic outlook. The GBP/USD regained the psychologically important $1.2100 level in the last week but the dovish stands of the Bank of England have induced some bearish pressure.
Rising food prices and expensive energy have already intensified the risk of recession in the UK. However, the momentum indicators are still in neutral territory. Bulls are eyeing the next immediate resistance level at 1.2300 level; therefore, one must look for potential buying opportunities in GBP/USD in the near term.
AUD/USD – Australian Dollar US Dollar
The Australian dollar started the week on a bullish note amid the minor correction in the U.S. dollar. The price is up by some 0.8% in the European session and is expected to reclaim the 0.700 level in the next few trading sessions if not today.
The price may consolidate near the current level but if the price breaks above the 0.700 level, then it could easily continue higher inside an ascending channel. The fast stochastic oscillator has also generated a crossover buy signal on an hourly chart. Therefore, one must look for potential buying opportunities in AUD/USD.