July 25th,2022 – In the Forex Weekly Forecasts segment, we provide critical news and information which helps you to seize the opportunity in the financial market.
Euro US Dollar
The Euro is directionless on Monday amid the weak business confidence data reported last week. There is no volume build-up in the long positions for EUR/USD from the last three trading sessions. Currently, the price is struggling below the 21-day exponential moving average as the momentum indicators suggest a consolidation phase.
The next immediate resistance for EUR/USD is at the 1.0250 level and a break above this level may indicate a continuation of the short-term recovery.
British Pound US Dollar
The British pound gained traction and is moving higher ahead of the Bank of England policy announcement. The GBP/USD price action posted a breakout above the 1.20300 level and is up by 0.55% compared to Friday. The technical setup is tilted towards the bulls in the short term with the relative strength index indicator making higher highs and higher lows suggesting a bullish bias in the market.
A break above the major psychological barrier at the 1.2100 level could trigger a big rally. Watch out for the Federal Reserve monetary policy announcement this week as the pound may lose an appeal due to an aggressive interest rate hike.
Australian Dollar US Dollar
The Australian dollar continues to recover as the risk-sensitive currency finds support from the bulls amid the weakness in the U.S. dollar. The AUD/USD is currently trading at the 0.69600 mark, up by 0.51% near the 50-day exponential moving average price level. This past week, the Australian dollar rebounded strongly against the US Dollar and posted a 1.94% gain.
The AUD/USD still has a long way to go before invalidating the downtrend. However, the existing market condition is not expected to persist much longer due to multiple interest rate hike announcements from major central banks.