20 Jun
Weekly Forex Technical Forecast on 20 June - 24 June 2016
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Weekly Forex Technical Analysis on 20 - 24 June 2016
Technical Pairs: EURUSD, GBPUSD, AUDUSD & USDJPY
EURUSD
EURUSD vibrated on the market tendency, suffering from the modifying sentiment about the British EU Referendum. Excluded from the event itself, we have major German surveys & PMIs. A UK exit of the European Union is also appearing as a danger for the euro-zone. When assessment polls showed a stronger lead for the depart campaign, the euro be affected very much. When the pound returned, the euro followed. Somewhere, inflation numbers were proved at low levels for May but industrial result surprised to the upside. In US, the Fed was exactly dovish, but the dollar weakness that pursued did not last on its own, either do the positive retail sales. The next week will see the completion in the UK, the euro-zone & for some other currencies as well.
Euro-dollar started the week supported level of 1.1230. It then covered too much lower ground at the level of 1.1130 earlier bouncing back up in a high-unstable week. Brexit appears more & more real and this weighs strongly on the euro as well. It might be the beginning of the end of the European Union & the euro-zone. A definite victory for Bremain, which yet has good chances, will also depart unlocks wounds in the UK & in the continent. Only a far victory for stay would move the euro higher. European data will definitely not help; as the green shoots shown on first quarter might be behind us. EURUSD remains Bearish this week.
GBPUSD
GBPUSD entwisted the directions earlier week & posted well-built gains. The pair gained regarding 150 points & closed at the level of 1.4343. This week’s key event of GBP is the EU Membership referendum. In the UK, Retail Sales showed a strong gain & beat anticipations. In the US, the Fed firm rates & gave no hints regarding a rate hike. Retail Sales were by means of predictions, whilst inflation levels stays low, as underscored by previous week’s CPI reports. GBPUSD unlocked the week at 1.4186 levels & mounted to a high of 1.4387 levels. The pair after reversed directions & fell down a low of 1.4010 levels, testing the support levels at 1.4036. The pair blocked the week at 1.4343 levels.
The Brexit vote might see sharp volatility dominant up the vote, with the result pretty much in the air. A vote to depart the EU will have huge consequences for the UK & the continents, & might see the pound fall sharply. Alternatively, a vote to stay in the EU would fairly be bullish for the pound. GBPUSD remains Neutral.
AUDUSD
AUDUSD finished last week almost unmodified, closing at the level of 0.7366. This week’s major event is Unemployment Change. Australian job figures were solid, as Employment Change showed strong gains. In the US, the Fed firm rates & gave no hints regarding a rate hike. Retail Sales were by means of predictions, whilst inflation levels stays low, as underscored by previous week’s CPI reports.
AUDUSD pair unlocked the week at 0.7371 levels & reached a high of 0.7446 levels, testing the resistance at 0.7438 levels. The pair after that modified directions & dropped to a low level of 0.7285. AUDUSD then bounce back & clogged the week unmoved at the level of 0.7367. The Fed remained on the sidelines previous week, & might stay out of the highlight until September. The next Brexit referendum might have muscular ramifications on the currency things, even on the Aussie. AUDUSD remains Neutral.
USDJY
USDJPY seems sharp losses earlier week, as the pair chop down 240 points. The pair clogged just over the 104 line, its lowest weekly close from August 2014 itself. This week has 5 key events on the schedule. The yen surged previous week, as the BOJ- Bank of Japan abstain from any easing changes. In the US, the Fed firm rates & gave no hints regarding a rate hike. Retail Sales were by means of predictions.
USDJPY pair unlocked the week at 106.48 levels & reached a high of 106.64 levels. The pair then entwisted directions & cut down a low of 103.50 levels, breaking earlier support at 104.25 levels. USDJPY blocked the week at 104.05 levels. Along the BoJ showing no appetite for additional easing, the yen might sustain to move near to the symbolic 100 level. The Fed also stayed on the sidelines previous week, & might refrain since a rate rise until September or even later.
FAQs
In short, Tuesday, Wednesday and Thursday are widely considered to be the three best days of the week to trade. Forex trading is best at the busiest times. This often means the best return on your investment, as well as the most profitable trades.
What is the forex forecast? ›
Forecasting in FX means predicting current and future market trends by utilising existing data and various facts. Being an analyst, one should rely on both fundamental and technical statistics in order to predict the directions of the economy, the stock market, and individual securities.
How do you predict forex signals? ›
Traders need to pay attention to fundamental factors such as: gross domestic product (GDP), inflation, economic growth activity, and manufacturing. Thus, fundamental analysis in Forex involves studying the economic strength of various countries, in order to make wise Forex predictions.
Is now a good time to trade forex? ›
The forex market runs on the normal business hours of four different parts of the world and their respective time zones. The U.S./London markets overlap (8 a.m. to noon EST) has the heaviest volume of trading and is best for trading opportunities.
What is the most profitable time to trade forex? ›
Let's Understand the London Session in Forex Trading!
With 43% of all forex transactions, it is a powerhouse of opportunity. From 8:00 AM to 5:00 PM GMT, experience high liquidity, tight spreads, and significant price movements, especially in the British pound (GBP). Let's delve more into the article below!
What is the 10 am rule in stock trading? ›
Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.
How to predict forex forecast? ›
To predict forex movements, traders use two types of analysis: fundamental and technical. Fundamental analysis takes external events and policies into account, affecting currency prices. On the other hand, technical analysis relies on historical price data and patterns to predict future movements.
Which currency pair is most profitable in forex? ›
The EUR/USD pair holds the throne as the most traded forex pair globally, known for its liquidity and stability. Traders often turn to this pair for its reliability and consistent profit opportunities.
What is the most accurate indicator for forex? ›
Top 10 forex indicators for FX traders
- Moving average (MA)
- Bollinger Bands.
- Average true range (ATR)
- Moving average convergence/divergence (MACD)
- Fibonacci retracements.
- Relative strength index (RSI)
- Pivot point.
- Stochastic.
The first step in using a forex signal is to first choose a reliable signal provider that uses trustworthy platforms to provide close to accurate signals. Conduct market research to choose the reliable forex signal provider that has a high reputation and strong past performance in the market.
As a general rule, traders use a ratio of 1:4 or 1:6 when performing multiple timeframe analysis, where a four- or six-hour chart is used as the longer timeframe, and a one-hour chart is used as the lower timeframe.
What are the best hours to trade? ›
The opening period (9:30 a.m. to 10:30 a.m. Eastern Time) is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.
What is the best week to trade forex? ›
All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility. During the middle of the week, the currency market sees the most trading action. As for the rest of the week, Mondays are static, and Fridays can be unpredictable.
Which day is good for forex trading? ›
All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility. During the middle of the week, the currency market sees the most trading action. As for the rest of the week, Mondays are static, and Fridays can be unpredictable.
Which day is best for trading in a week? ›
If Monday may be the best day of the week to buy stocks, then Thursday or early Friday may be the best day to sell stock—before prices dip.
What are the bad days to trade forex? ›
Worst Times to Trade:
Fridays – liquidity dies down during the latter part of the U.S. session. Holidays – everybody is taking a break. Major news events – you don't want to get whipsawed! When you just broke up with your significant other because you chose forex trading over him or her.
What is the best forex day trading strategy? ›
Top 5 forex day trading strategies
- Trend trading.
- Swing trading.
- Scalping.
- Mean reversion.
- Money flows.
