First, about the forecast for the previous week:
- as for EUR/USD, 35% of the analysts and graphical analysis on H1 and H4 were correct in their forecast that the pair would fall in the last five workdays. As predicted, the pair reached the first support at 1.1150 and then tried to reach the second support at 1.1030 but halfway through it reversed and finished the week at 1.1131;
- the GBP/USD pair’s drop was greater than expected.В After breaking through support at 1.4365, the pair fell to 1.4245 and entered a 1.4245-1.4395 sideways channel with a 1.4310 pivot point;
- after the crash that started 1 February, the experts hoped that USD/JPY would rebound at least to 115.60 but it couldn’t even reach 115.00. The pair froze at 114.87 for half an hour and moved down again, finishing the week even lower than at the beginning of the week – around 112.55;
- the forecast for USD/CHF by graphical analysis and 40% of the analysts turned out to be totally correct. The pair continued to move upward to 0.9967, took a break and went down to support at 0.9890.
Forecast for Coming Week
Summarizing the views of several dozen 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 suggested:
- in the next 2-3 days, EUR/USD can rise a bit and reach resistance at 1.2222 as proposed by graphical analysis on H4 and the indicators on H1 and H4. In the longer term, the number of supporters of a downtrend grows in proportion to the time interval. Thus, in the weekly timeframe 55% of the experts vote for a fall, in the monthly timeframe it is already 65%, and in the quarterly one it’s 78%. Graphical analysis paints quite an apocalyptic picture on D1 – in the next 2-3 weeks, the pair may totally crash, hitting the bottom at 1.0500;В В
- as for GBP/USD, 40% of the experts and graphical analysis on H4 and D1 indicate that now the pair is at the top boundary of a 1.4200-1.4400 channel, along which it will be moving all week. This is echoed by 33% of the indicators on H4 and 75% of them on D1. At the same time, graphical analysis doesn’t rule out that end of this week or early next week, GBP/USD will break through the top boundary of the channel, turn resistance into support and continue its sideways trend in a 1.4400-1.4620 range with a 1.4500 pivot point;
- according to 60% of the experts, 100% of the indicators and graphical analysis, USD/JPY will continue to fall at least to 110.70 (the next support is at 110.00) and then bounce up first to the current level of 112.55 and afterwards higher, the target being 115.00;
- about 70% of the experts tend to believe that USD/CHF will rise first to the key level of 1.0000 and then up to 1.0200. Graphical analysis on H4 and the indicators on H4 and D1 show that before rising, the pair may spend some time in a 0.9830-0.9930 sideways trend with prevailing bearish sentiment.
Roman Butko, NordFXPublication source