Forex Outlook: EUR/USD, GBP/USD, USD/JPY, Brent

EUR/USD: Strong correction or new peaks for the Euro?

(Vasilis Tsaprounis – TopFX)

The single European currency remains stable in the area of 1,06 as every time it receives some pressure succeeds and reacts soon.

In the last few days, the pair has fallen at least four times marginally below the level of 1,06 But without this fall having any duration.

As we expected and highlighted in yesterday’s article the day in the absence of major announcements was quite calm, the trading range was quite narrow and there was no significant direction in the exchange rate.

While our last thoughts to buy dollars on peaks were confirmed again as each time there was a temporary rise for the European currency very soon the US dollar went on the counterattack pushing the pair just below the 1,06 level again.

International stock markets once again came under pressure which could potentially strengthen the US currency much more.

Nevertheless, a particular resilience is observed in the European currency to maintain these levels and to react very quickly whenever it receives some pressure, something that is a little strange and beyond the fact that at the last meeting of the European Central Bank, the rhetoric was hawkish, I could not at present give some other explanation.

Today has some limited interest In terms of macroeconomic news with data on housing starts in the United States and Consumer confidence in the Eurozone standing out.

As US debt yields have returned to higher levels and sentiment in International stock markets is likely to remain bearish, the chances of the US dollar finding some more positive direction are increased.

In any case, I maintain for now the recent strategy of buying the US currency on peaks.

Ichimoku cloud analysis: GBP/USD, USD/JPY, Brent

(RoboForex Team)

GBP/USD, “Great Britain Pound vs US Dollar”

GBP/USD has left the borders of a bullish channel. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the Tenkan-Sen line at 1.2160 is expected, followed by falling to 1.1725. An additional signal confirming the decline will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 1.2345, which will mean further growth to 1.2435.

USD/JPY, “US Dollar vs Japanese Yen”

USDJPY is testing the support level. The instrument is going below the Ichimoku Cloud, which suggests a downtrend. A test of the signal lines of the Cloud at 134.05 is expected, followed by falling to 129.05. An additional signal confirming the decline will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 137.55, which will mean further growth to 138.45.

Brent

Crude oil is testing the Tenkan-Sen line of the indicator. The instrument is going inside the Ichimoku Cloud, which suggests a flat. A test of the upper border of the Cloud at 80.85 is expected, followed by falling to 71.55. A signal confirming the decline will be a bounce off the lower border of the bullish channel. The scenario can be cancelled by a breakaway of the upper border of the Cloud and securing above 83.55, which will mean further growth to 88.05.