The accuracy of last week’s forecast was significantly influenced by statistical reports and speeches by high-ranking officials, with the following outcomes:
- the support level for EUR/USD was set at 1.1000, and the pair tried to break through it for the first half of the week. It eventually happened on seemingly less important news from the USA, and by Friday the pair reached last May’s low;
- GBP/USD was expected to fall to around 1.5350, then rise and possibly break through the resistance level of 1.5555. The pair did fall, although not as much as predicted – to 1.5450. After that, following the speech by the head of the Bank of England, GBP/USD soared, broke through 1.5555 and turned this level into support;
- the forecast for USD/JPY can be considered 100% accurate. As put forward, the pair went down to the support level of 122.00 for a short while and then moved into the earlier mentioned zone with the Pivot Point at 123.50;
- there were two alternative scenarios for USD/CHF’s direction, and the start of the week was supposed to show which of them would play out. That was the case – it was clear already on Monday that the pair would follow the indications of graphical analysis and go up, making 0.9380 its initial support level.
Forecast for the coming week. Generalizing the opinions of 35 analysts from leading banks and broker companies, as well as forecasts based on a wide variety of technical and graphical analysis, the following can be said:
- the EUR/USD pair appears to be in a unique situation – 100% of the experts predict its rise and 100% of the indicators predict its fall. However, both suggest only minor fluctuations, which seems to be due to the lack of any major news in the upcoming week. Support is likely to be at 1.0750-1.0800 while resistance – at 1.1110. Graphical analysis confirms this, showing a sideways trend with some advantage for the bulls;
- GBP/USD is also expected to be in a sideways trend with the Pivot Point at 1.5615, support around 1.5550 and resistance at 1.5760. All of the experts and an ascending corridor, clearly visible on Ð4, suggest that the pair should reach this level within the first half of the week. According to graphical analysis on H1, there may be a short-term drop to the support level before the pair rises;
- last week USD/JPY reached its 2007 high. Both experts and indicators are of the opinion that, with support at 123.75, the pair will continue to move upwards to 126.00 for some time. The next support level will be at 123.00;
- the USD/CHF pair is widely believed to continue to rise to 0.9600 and further to 0.9700. This week the main support will be around 0.9520.
Roman Butko, NordFXPublication source