Forex Forecast for 21-25 December 2015

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.

Roman Butko, NordFX

Publication source
NordFX information  NordFX reviews

October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...
October 20, 2016
Doting on Draghi
The ECB meeting arrives today when EURUSD is testing key levels. The mid-year lows at 1.0952 is perilously close as I write, whilst the post-Brexit referendum low of 1.0913 being in the frame after that. It’s hard to see the ECB adding to its quantitative easing policy...
October 19, 2016
A bullish presence on the market
The Dollar upturn seen in the recent weeks that was influenced by the firm belief in a rate hike of December fizzles out, after Yellen’s speech and the downbeat US inflation and manufacturing data...

HotForex Rating Rating
FxPro Rating
HYCM Rating
Vantage FX Rating
Orbex Rating

365BinaryOption Rating
Porter Finance Rating
Grand Option Rating
24option Rating
TopOption Rating
TropicalTrade Rating