In the Forex Weekly Forecasts segment, we provide critical news and information which helps to seize the opportunity in the financial market.
USD/JPY – US Dollar Japanese Yen
USD/JPY is in the bearish territory on Monday amid the fresh decline in the U.S. dollar and ease in COVID-19 lockdowns in China. Investors turned towards the Yen after receding demands for safe-haven assets. The recent price actions on the daily chart formed a Bearish continuation pattern which suggests a big downside correction in USD/JPY.
The relative strength index indicator is not yet in the oversold zone, therefore there is enough room for more decline towards the major psychological support level at the 127.00 mark.
GBP/USD – British Pound US Dollar
The British pound started a strong rebound from the major significant level of 1.2500 level against the US dollar in the European session. Market participants were surprised after the office of National Statistics released better-than-expected retail sales data for April month. The retail sales rose 1.4% supported by the overall online sales of 3.7% in contrast to the market census.
The bulls took control of the price and GBP/USD posted a decent gain of 0.60% at the time of reporting. Moreover, there was a breach of the 1.2500 level and the price trended nicely on an hourly chart inside an ascending channel. A successful test of the next immediate resistance level at the 1.2580 mark may accelerate the upside gains.
AUD/USD – Australian Dollar US Dollar
The Australian dollar is on the rise after the overall rebound in risk sentiment across financial markets. The risk-sensitive currencies gained support after Chinese authorities announced a major rate cut to support the world’s second-largest economy. AUD/USD is up close to 1% and broke the major resistance at the 0.7100 mark in the process.
The Reserve Bank of Australia is expected to raise its interest rate by 50 basis points in the next few weeks and consequently, AUD/USD jumped quickly to multi-week highs. The price corrections in the US dollar may open the doors for more upside gains for AUD/USD in the next few trading sessions.