Let’s start with a review of last week’s forecast:
- regarding EUR/USD, 64% of the analysts expected the pair to fall by at least 100-200 points while 18% of the analysts claimed that the euro would rise to 1.1250. Following the news from Greece, both forecasts were fulfilled – the week started with a gap of 140 points, on Tuesday the drop made the mentioned 200 points, then the pair started to go up and reached 1.1215 by the end of the week;
- the predictions for GBP/USD were also correct. According to graphical analysis, the pair was supposed to go down to 1.5430-1.5500 mid-week and then return to the 1.5550-1.5616 marks. All of that happened indeed – GBP/USD descended to 1.5430 on Tuesday, reached its low of 1.5330 on Wednesday and then soared up to 1.5555;
- the experts, the technical indicators and the graphical analysis readings were only partly right about USD/JPY. Their forecast about the 122.00 support level held up for the first half of the week, after which the pair had a dive to 120.45. Then it made a U-turn, rushed upwards and ended up at the level of the beginning of the week, i.e. 122.75;
- the USD/CHF pair was expected to fall to 0.9330, and it did happen. After putting up resistance for a while, the pair crashed down at the end of the week. It was able to stay at the 0.9330 target just for one minute.
Forecast for this week. Summing up the opinions of 35 analysts from world leading banks and broker companies as well as forecasts based various methods of technical and graphical analysis, the following can be suggested:
- just like last week, fluctuations on the currency market will largely depend on the events in Greece. At the same time, most experts (62%) and indicators (53%) predict that the EUR/USD pair will rise and move to around 1.1365. Graphical analysis, in turn, indicates a possible sideways trend with support at 1.1000 and resistance at 1.1215;
- as for GBP/USD, the opinions of the analysts (54% vs 46%) and indicator readings (H4 for a rise, D1 for a fall) diverge. Graphical analysis promises a repeat of last week’s scenario – the pair falling to around 1.5350 and then rising to resistance at 1.5555. In case of a breakthrough, the target will be 1.5930;
- the experts, the technical indicators and graphical analysis are unanimous about USD/JPY returning to around 123.50. However, at the start of the week, a short-term fall to the support level of 122.00 can’t be ruled out;
- the opinions about USD/CHF are split, though the majority of the analysts (64%) believe that last Friday’s finishing level of 0.9380 will become the main resistance, off which the pair will be bouncing down towards 0.9330 or even lower to 0.9250. Graphical analysis, however, puts forward an alternative scenario with 0.9380 as support. The start of week is likely to reveal which of the two scenarios will actually play out.
Roman Butko, NordFXPublication source