Trading on financial markets is associated with a high level of risk and can lead to a loss of money deposited.Investors residing in Spain are warned that the Spanish Securities and Exchange Commission (CNMV) has determined that, due to their complexity and the risk involved, the purchase of FX products by retail investors is not appropriate/suitable.
December 21, 2015

First, a review of last week’s forecast:

  • the scenario for EUR/USD, backed by most analysts and the minority of the indicators, started to pan out. The pair spent some time in a sideways trend, broke through support at 1.0900 and went down. However, that movement was more sluggish than expected, and the pair didn’t reach support at 1.0700, stopping 150 points higher;
  • the experts suggested that GBP/USD would be moving in a sideways channel of 1.4900-1.5250. It did happen – the pair pushed off the top boundary of the channel on Monday, went down decisively and came to a standstill at the bottom boundary of 1.4893 Friday night;
  • the analysts were right about USD/JPY. In their opinion, the level of 120.00 was supposed to become very strong support, pushing off which the pair was to surge to resistance at 122.20 and then to 123.20. The latter level was reached on Friday thanks to the Bank of Japan's decision about its interest rate;
  • there were varied opinions regarding USD/CHF again – some experts and indicators voted for a rise while others for a fall. The pair did just that – first, it went up a little, then dropped, then rose again and ended up 100 points higher in one week, although it doesn’t qualify yet as a full-on upward reversal.

 

Forecast for the upcoming week.

Summarizing the opinions of analysts from world leading banks and broker companies as well as forecasts based on different methods of technical and graphical analysis, the following can be put forward:

  • most experts, with the indicators staying neutral, continue to insist on EUR/USD’s return to the values of the second half of November. At the same time, graphical analysis on H4 elaborates that the pair may first try to break resistance at 1.0900 but after one or two unsuccessful attempts it will go down to support at 1.0700. The next support is 100 points lower;
  • as for GBP/USD, all indicators clearly point downward. Being aware of the upcoming Christmas holidays unlike the indicators, the analysts predict the pair will transition into a sideways trend in the range of 1.4680-1.5000 with a 1.4890 pivot point. Graphical analysis on D1 supports them and indicates further bearish sentiment;
  • the experts and graphical analysis on H4 reckon that USD/JPY will move sideways within 120.30-122.20. At the same time, the indicators on H4 and D1 point to the bears’ upper hand and insist that the pair won’t be able to break even the first resistance at 121.70;
  • the general forecast for USD/CHF remains the same – back to around 1.0000. The experts, the indicators on D1 and graphical analysis agree with this. The immediate target is resistance at 1.0100. The next resistance is around 1.0150, support remains at 0.9800.

 

NordFX CY


« Market Analysis and News
Receive
Training
New to the market? Make use of the section with educational materials. Start Training
Questions and Answers
This is a section where you will find not only answers to your questions but also a lot of other useful information
Learn More
Visa Mastercard Neteller Skrill UnionPay CardPay Eurobank Eurobank

We use cookies. If you accept our use of cookies you can continue browsing our website. Please see our Policy for full details and how you can opt out.

Risk Warning: CFDs are complex instruments and come with a high risk of losing your invested capital rapidly due to leverage. 66.67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your invested capital. If you do not fully understand the risks involved, please seek independent advice. For a better understanding of complex financial products please click here.

NFX Capital CY LTD does not provide financial services to the residents of USA, Canada, Japan, Belgium and other additional jurisdictions.

Close