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Forex Forecast for EURUSD, GBPUSD, USDJPYand USDCHF for 26 – 30 September 2016

First, are view of last week’s forecast:

  •   the most intriguing for EUR/USD last week was whether the ascending channel, which had started in July, would continue. However, the acting of the pair didn’t give a clear answer to that question. Indeed, after the breakout, as expected, the pair went down to the support in the area of 1.1100–1.1120. But then, having rebounded from it the pair returned to the lower boundary of the uptrend and, having turned it into the resistance, continued its moving upwards;
  •   as a reminder, assessing possible acting of GBP/USD, experts split into three almost equal groups: 35% voted for the pair’s fall, 30% - for its rise, and 35% for the sideways trend. Eventually, the last camp turned out to be right – using the central line of summer sideways channel of 1.3060 as the resistance, the pair had been moving eastward during the whole week. With this, the bears didn’t cease to test the level of 1.2950, but the bulls could fight off all those attacks, and eventually the pair wrapped up the week at the level of 1.2960;
  •   as for USD/JPY, the Interest Rate Decisions of the central bank of Japan and the US Fed (which, as expected, were kept on hold) were no so much determining as the commentary on the monetary policy of those countries. Eventually, having kept within the sideways range during the first two days, on Wednesday the pair surged up – to the resistance of 102.80, and then, as the graphical analysis expected, it plunged. Having broken through the support of 100.50, by inertia the pair went further 40 points down – to the level of 100.10, and afterwards, when it calmed down a little, it returned to the specified area – to the area of 100.50–101.25;
  •   Wednesday was also determining for USD/CHF. And if until now the pair had been moving without moving apart from the pivot point of 0.9800, then, mirroring the acting of EUR/USD, it plunged. The technical analysis indicated two levels of support – 0.9685 and 0.9640, however, the pair preferred the average value and chose the level of 0.9660 as the week low, and afterwards, having bounced off it, it returned to the area of 0.9685–0.9740.



Forecast for the Upcoming Week.
Summing up the opinions 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 :

  • EUR/USD. 95% of indicators on H4 and 80% on D1 point to the north. As for the analysts, 60% of them vote for the pair’s rise, and 40% - for its fall. This time the number of supporters of the sideways movement of the pair was zero. If the camp, voting for rise, wins, then the pair will return to the range of the ascending medium-term channel and consolidate above its lower boundary, alongside which it has been currently moving. In this scenario the minimum goal is to get to the area of 1.1260–1.1280, the target for the next weeks - 1.1410. As for the supporters of its fall, they indicate the level of 1.1120 as the target, the next support will be at 1.1045. It should be noted here, that unlike the week forecast, in medium term around 75% of experts give priority to the bears;  
  • the forecast for GBP/USD remains virtually unchanged. The most analysts, fully backed by the graphical analysis on H4 and D1, insist that the pair will continue to go down to the lower boundary of the three-month sideways trend – to 1.2850, and afterwards a reverse of the trend and return of the pair to the resistance of 1.3060 should follow.
  • as for USD/JPY, the majority of analysts – 70%, backed by the indicators and the graphical analysis on D1, insist that the pair will continue its downtrend. With this, it should be noted, that currently the pair is at the level of very strong support – 101.00, and significant efforts might be required to get over it. If successful, the target of the pair will be the area of 99.00-100.00. According to the graphical analysis, during the month the pair might go further down – to the support of 96.50, afterwards it will return to the level of 101.00;  
  • talking about the near future of USD/CHF, 60% of experts and indicators on H4 and D1 believe that the pair should once again test the low of 0.9660, and possibly reach the bottom in the area of 0.9600. However, then the pair will nevertheless return to the pivot point of 0.9800, and more than 70% of analysts are sure about that.



Roman Butko, NordFX

Notice: These materials should not be deemed as a recommendation for investment or guidance for working on financial markets and they are for informative purposes only. Trading on financial markets is risky and it can lead to loss of money deposited.
 

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Forex Forecast EURUSD, GBPUSD, USDJPY and USDCHF for 03 – 07 October 2016

First, a review of last week’s forecast:

  •   as a reminder, forecasting the future of EUR/USD, 60% of analysts voted for the pair’s rise up to the resistance of 1.1260–1.1280, and on Monday the pair actually reached the level of 1.1279. 40% of experts supported its fall, and on Friday the pair tested the bottom in the area of 1.1150. This time the number of supporters of the sideways trend was equal to 0. But if at least one expert had pointed to the east, his very forecast would have turned out to be the most accurate, as the pair ended the week almost where it had started from – at the level of 1.1240;
  •   currently GBP/USD is keeping within the lower area of the three-month sideways channel, and most analysts expected the pair to continue its declining to August lows in the area of 1.2850. However the pair preferred to follow the suit of EUR/USD, and, using the central line of 1.3060channel as the resistance, it transited to the sideways trend. Eventually the week session was ended, one might say, with a zero result – in five days the pair rose less than by 10 points;
  •   the same pattern may be observed as for USD/JPY. Here the majority of experts – 70%, backed by the indicators and the graphical analysis, insisted on continuation of the descending trend. With this, it was noted that significant efforts might be required to get over the strong support of 101.00.  The area of 99.00-100.00 was indicated as the nearest target. Eventually the pair could approach the level of 100.00 for a short time, following which it strongly surged upward and finished the week at the level of 101.33;
  •   giving the forecast for USD/CHF, the experts together with the indicators reckoned that it should retest the low at the level of 0.9660, following which it should return to the pivot point of 0.9800. That forecast panned out100%. In a week the pair made whooping four attempts to break through the specified support, and two of them made headway. And thus, on Thursday the pair freshened its September low, having fallen to the level of 0.9640, and then, as expected, it went back upward, having moved up to the level of 0.9755 on Friday. As for the end of the working week, the pair wrapped up the week the same as the other three pairs of our review, the final area virtually coincided with the starting area, and the pair came into a weekend at the level of 0.9712.



Forecast for the Upcoming Week.
Summing up the opinions 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 :

  • EUR/USD. The great majority of indicators on H4 and D1 (90%) point to the north. With this, the vast majority of experts (80%) point to the south. Such dissent is possibly connected with the fact that the indicators cannot be aware of Friday (October 7) release of data on employment change from the USA. Forecasts for these data, including NFP, are positive for US dollar. And if NFP, as expected, increases from 151К to 170К–176К, EUR/USD pair can go down to the support of 1.1150. The next support will be at 1.1120. As for a longer term forecast, here 70% of analysts expect the pair to go down below the level of 1.1000;
  • certainly, expectations for employment growth in the USA and negative forecasts in respect ofindustrial output in Great Britain (these data are also released on Friday) cannot but affect GBP/USDquotations. So, 65% of experts, backed by the absolute majority of indicators and the graphical analysis on H4, expect the pair to decline to August lows in the area of 1.2850. As for the graphical analysis on D1, it indicates the possibility of its greater decline – down to the low of July 06 at the level of 1.2795, following which the pair will return to the medium-term pivot point of 1.3060;
  • as for USD/JPY, plenty of evidence suggests that the pair will transit to the sideways trend. So, the opinions of both experts and indicators on H4 and D1 split almost equally – about half of them vote for the pair’s rise, and the same number – for its fall. As for the graphical analysis, the one on H4 also tends to the sideways trend within 100.80–101.80. The graphical analysis on D1 extends the range of the pair’s fluctuations to 99.00–104.00, with this, it expressly points to predominance of bullish sentiment for this upcoming week;
  • as before, nobody expects any surprises from USD/CHF. The pair continues a medium-term consolidation in the area of 0.9700–0.9800, diminishing volatility during the whole year of 2016. The main resistance will be at 0.9810, support – in the area of 0.9640–0.9660. With this, over 75% of experts believe that in the medium term the bulls will convincingly win, and the pair will make an upward breakout, observing the beginning of new year of 2017, at the high of 1.0100.



Roman Butko, NordFX

Notice: These materials should not be deemed as a recommendation for investment or guidance for working on financial markets and they are for informative purposes only. Trading on financial markets is risky and it can lead to loss of money deposited.
 

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Forex Forecast EURUSD, GBPUSD, USDJPY and USDCHF for 10 – 14 October  2016

First, a review of last week’s forecast:

  •   as a reminder, predicting the future of EUR/USD most experts pointed to the south. NFP print (US Non-Farm Payrolls) was expected to increase from 151К to 170К–176К. On the back of this forecast during the whole second half of the week the bears had been steadily pushing the pair down, to the support of 1.1120, specified by the experts. However, the Bureau of Labor Statistics of the USA threw a curve: first, it adjusted its data for August - 151К instead of 167К, and then it announced that the print for September made 156К. Eventually, instead of expected rise we saw a drop, and ultimately EUR/USD pair returned to the last months’ pivot point – to the level of 1.1200, very quickly;
  •   last week we predicted decline of GBP/USD pair to the level of 1.2850, or even a greater decline to the low of July 06 to the level of 1.2795. But no one expected the thing happened on Friday – during Asian session trading the British currency plunged to the low seen in March 1985. Having started with the level of 1.2615, in just 3(!) minutes it fell down to 1.1840 at average. (It stopped declining at the level of 1.1940 with one brokers, and at the level of 1.1490, i.e. 450 points lower – with the others). As of this writing the analysts failed to achieve a consensus in respect of the reasons of such a collapse. For example, Bloomberg provided as many as six versions, and The Wall Street Journal reduced them to two versions, indicatingrobo traders and the president of France, François Hollande, who stated that Great Britain would be seriously affected by Brexit, as the main “suspects”. Afterwards the pound broke through the technical levels of support, which sharply increased currency sell-off by robo traders. The result of what mess these soulless computer programs can cause is, as they say, obvious. However, later with the assistance of people the pound went up again, but it was not easy to regain the losses of almost 1000 points quickly, and GBP/USD wrapped up the week at the level of 1.2430;
  •   as for USD/JPY, here the graphical analysis on D1 gave the most accurate forecast. As a reminder, it expressly indicated predominance of bullish sentiment and rise of the pair to the level of 104.00. That exactly what happened – gradually moving up, on Thursday the pair reached the high of 104.15, following which the bears regained 125 points and the pair froze at the support area of 102.90;
  •   USD/CHF. As expected, the pair continued consolidating at the area of 0.9700–0.9800. Supporting bullish sentiment, last Friday it tried to break through the main resistance of 0.9810, however soon it returned to the area, predetermined by the experts, and came into a weekend at the level of 0.9775.



Forecast for the Upcoming Week.
Summing up the opinions 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 :

  • as EUR/USD is keeping within the medium-term pivot area – the level of 1.1200, the indicators on both H4 and D1 have taken a neutral stance. As for the analysts, 90% of them expect the pair to fall to the support of 1.1100, and then down to the area of 1.1000. The main resistance will be at the level of 1.1280. With this, we should keep in mind that the Minutes of the Federal Open Market Committee meeting (Wednesday, October 12), the outcome of the EU Extraordinary Economic Summit (Thursday, October 13), as well as data on US economy and speech of the Federal Reserve Chair, Janet Yellen, on Friday, October 14, can influence formation of a short-term trend;
  • GBP/USD. It is clear that after last Friday events the experts only lift their hands in dismay. In such situation the readings of the graphical analysis are of interest, the one on D1 predicts returning of the pair first to the resistance of 1.2700, and then even higher – up to the area of 1.2850. The thing happened to USD/CHF after January 2015 crisis also votes in favor of this forecast fairness. As a reminder, that time the market had quickly overcome panic sentiment, and just in two months the pair had regained almost all losses. The graphical analysis on H4 provides an alternative version for GBP/USD. According to its readings the pair can continue its downtrend, which had started on September 06. In this case it will decline to the support of 1.2340, and then down to the level of 1.2120;
  • USD/JPY. Here just like last week the opinions of the experts split almost equally: just under half of them vote for the pair’s rise, just over half – for its fall. As for the graphical analysis on H4, it predicts that early week the pair will go up to the resistance of 103.70–103.90, and then decline – first to the level of 102.70, and then – to 101.75. The bottom will be at the level of 100.75. As for the graphical analysis on D1, according to it, this week the pair can get to the high of 106.40, and only then reverse to the south and look for the support of 101.75;  
  • the forecast for USD/CHF can be made using copy paste for weeks. As before, drawing a triangular pennant, the pair continues gradual consolidation at the area of 0.9640–0.9660. With this, almost 80% of experts are sure that in the longer term the bulls will win the victory and the pair will breakout upwards, reaching the high of 1.0100.


Roman Butko, NordFX

Notice: These materials should not be deemed as a recommendation for investment or guidance for working on financial markets and they are for informative purposes only. Trading on financial markets is risky and it can lead to loss of money deposited.
 

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Forex Forecast EURUSD, GBPUSD, USDJPY and USDCHF for 17 – 21 October 2016

First, a review of last week’s forecast:

  •   referring the future EUR/USD, the overwhelming majority of experts (90%) predicted that the pair would decline to the area of 1.1000, which did happen. First with a single bound it travelled 220 points by Thursday, then it stalled at the level of 1.0985, following which we saw a 70 points rebound, in a result of which many traders, using averaging of positions, could recover from a deep drawdown and catch a break. Then the pair again reversed to the south and on Friday evening it made a second attempt to consolidate below the support of 1.1000, wrapping up the week at the level of 1.0970;
  •   as for the future of GBP/USD, the graphical analysis on H4 turned out to be right, it expressly pointed to continuation of the descending trend, which had begun on September 06. The levels of 1.2340 and 1.2120 were indicated as the support levels. This scenario panned out almost entirely. As early as Tuesday during the Asian session the pair easily got over the first support turning it into the resistance, and it sharply plunged further. Inertia of the decline was so strong that the pair couldn’t even fall 30 points below the support of 1.2120, but then, likewise, it sharply went up to the intended resistance area. The entire second part of the week the pair spent trying to get over the newly formed resistance of 1.2165, and eventually it ended the week at the level of 1.2185;
  •   USD/JPY. As a reminder, experts' opinions split almost equally in this case: just under half of them voted for the pair's rise, just over the half - for its fall. And here, as with GBP/USD, the graphical analysis proved to be right, it pointed to predominance of bullish sentiment and the pair's rise. But as for the ultimate target of the upswing, the forecast differed from reality. The graphical analysis on H4 predicted that the pair would go up to the resistance of 103.70-103.90, and the one on D1 - up to 106.40. In reality, the pair reached the level somewhere in between the specified highs – at the level of 104.65.The end of the week coincided with the high of October 6 - 104.155;
  •   The medium-term forecast for USD/CHF starts panning out slowly but steadily. The strength of bulls starts outweighing, and thus, the pair is getting closer and closer to the intended target - 1.0100. Last week it could consolidate above the level of 0.9800, but the resistance of 0.9900 appeared to be an insurmountable barrier on its way, and the pair failed to rise above the level of 0.9910.



Forecast for the Upcoming Week.
Summing up the opinions 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 :

  • it's clear after a deep decline of EUR/USD, all 100% of indicators on H4 and D1 point to the south. As for the analysts, only half of them agree to this opinion. They indicate the support of 1.0900 as the short-term target. The alternative viewpoint provides for return of the pair to the level of 1.1100, the next resistance will be at the level of 1.1200. As for the readings of the graphical analysis on H4, according to it, the pair should first decline to the level of 1.0940, and then transit to the sideways movement within the range of 1.0940-1.1000. In a longer term the number of supporters of fall increases, and now more than 60% of experts reckon that the pair will go down to the lows of February-March- 1.0800-1.0825;
  • GBP/USD. Here, about 70% of analysts, backed by the graphical analysis on H4 and only 5% of indicators, reckon that in the near future the pair will not fall below the level of 1.2100 and it will move in a sideways channel of 1.2100-1.2330, and then, maybe it will return to the level of 1.3000. The graphical analysis on D1 strongly disagrees with this scenario, according to its readings the pair can fall below the area of 1.1850. With this, we should take into consideration the fact that for a long time formation of a given trend will depend not so much on the readings of Great Britain as on announcements of politicians on terms and conditions of United Kingdom exit from the EU;
  • USD/JPY. For a third week in a row the opinions of experts in respect of the future of this pair split almost equally: one half, backed by the graphical analysis on H4, predicts the upswing of the pair to the high of 105.00, the second half votes for its decline to the level of 102.80 and further down- to the area of 102.00. The graphical analysis on D1 also votes for fall and transition to the sideways trend within 102.80-104.30;
  • as for the forecast for USD/CHF, around 60% of analysts and the graphical analysis on H4 believe that the bulls' strength have weakened and the pair is in for a temporary rebound to the benchmark area of 0.9700-0.9800. The remaining 40% of experts reckon that the ascending trend hasn't ended yet, and the pair will be able to go further 50 points- up to the high of 0.9950. The medium-term target remains the same- 1.0100, though the number of supporters of such a scenario decreased from 80% to 65% as compared to the last week.



Roman Butko, NordFX

Notice: These materials should not be deemed as a recommendation for investment or guidance for working on financial markets and they are for informative purposes only. Trading on financial markets is risky and it can lead to loss of money deposited.
 

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Forex Forecast EURUSD, GBPUSD, USDJPY and USDCHF for 24 – 28  October 2016

First, a review of last week’s forecast:

  •   predicting the future of EUR/USD, most experts (60%), backed by 100% of indicators on H4 and D1, expected the pair to go down to the lows of February-March - 1.0800-1.0825. It was just a question of time this process would take. The level of 1.0900 was indicated as the short-term support. Indeed, that support was a short-term one, and the pair got over it on Friday easily, than having declined to the level of 1.0860. It was followed by a small rebound, and the pair ended the week at the level of
    1.0885;
  •   as a reminder, giving the forecast for GBP/USD 70% of analysts, backed by the graphical analysis on H4, reckoned that in the near future the pair would not fall below the level of 1.2100 and it would move in a sideways channel of 1.2100-1.2330. That forecast was 100% fulfilled. The low of the week was recorded at the level of 1.2135 on Monday. Several attempts the pair made on Tuesday and Wednesday to break through the resistance failed, and it wrapped up the week almost in the middle of the specified side channel  - at the level of 1.2230;
  •   USD/JPY. Here, the graphical analysis provided the most accurate forecast, it predicted that the pair would go down and transit to the sideways trend within 102.80–104.30. Indeed, the pair started declining since the very first moment of opening of the week session and during all five days it kept within the side channel within 103.16–104.35;
  •   USD/CHF pair continues moving insistently towards its main target – the high of 1.0100. With this, last week the part of analysts reckoned that the pair was in for a temporary rebound. But 40%of them were adamant that before going down it should reach the mark of 0.9950 for sure. The pair not only met the target, but also beat it a little bit, moving up to the level of 0.9962 within a week.



Forecast for the Upcoming Week.
Summing up the opinions 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 :

  • talking about the future of EUR/USD 70% of experts reckon that the pair will continue its declining at least to the level of 1.0800. 100% of indicators on H4 and D1 agree with this scenario. The decline can be even greater if forecast on state of economy of the USA will be proved true. Some readings for September will be announced on Thursday, October 27, and annual data on GDP – on Friday, October 28. The analysts expect them to be rather positive for US dollar, which can drop the pair further. As a reminder, last year the pair fell below the level of 1.0500 repeatedly. Around 30% of experts and the graphical analysis on H4, which draws in first a sideways movement of the pair within 1.0855–1.0915 and then upswing to the level of 1.0960, hold an alternative view. The next resistance will be at 1.1100;
  • GBP/USD. Here, around 80% of analysts, backed by 70% of indicators, reckon that in the near future the pair will start declining first to the level of 1.2100, and then – to 1.2000. As for the graphical analysis, according to its readings early week the pair will keep within 1.2135–1.2300 for some time, and then its volatility will increase up to 1.2000–1.2430. The governor of the Bank of England, Mark Carney, and president of the ECB, Mario Draghi, will speak on Tuesday, their speeches can influence forming of a new trend, as well as the aforesaid data on the US economy. It should be noted that in a longer term opinion of analysts is changing, and over 55% of them expect the pair to rise to the area of 1.2800–1.3000 by the New Year;
  • USD/JPY. For the fourth week in a row the opinions of experts in respect of the future of this pair split almost equally: 40% vote for its rise, 40% - for its fall, 20% - for a sideways trend with the pivot point of 103.45. If we add readings of 70% of indicators and the graphical analysis to this variety of opinions, in the near future we can expect the pair to upswing first to the level of 105.00, and then fall to the support in the area of 103.20.  The next support will be at 102.80. Coming back to the opinions of the experts, it may be noted that in the medium term already 65% of them reckon that the pair will surely reach the high of 105.00;
  • as for the forecast for USD/CHF, here everything is unchanged: around 60% of analysts, 90% of indicators and the graphical analysis on H4 vote for another breakthrough of the pair to the north – this time to the high of 1.0000, and then bouncing off to the area of 0.9700-0.9800. The remaining 40% of experts believe that the pair will reverse southwards, failing to reach this benchmark level. The nearest support levels will be at 0.9855 and 0.9820, then – at 0.9765 and 0.9695.



Roman Butko, NordFX

Notice: These materials should not be deemed as a recommendation for investment or guidance for working on financial markets and they are for informative purposes only. Trading on financial markets is risky and it can lead to loss of money deposited.
 

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Forex Forecast EURUSD, GBPUSD, USDJPY and USDCHF for October 31 – November 4, 2016

 

First, a review of last week’s forecast:

 giving forecast for EUR/USD, those 30% of experts, having suggested a possible rise of the pair, turned out to be right. As a reminder, such scenario was also backed by the graphical analysis, according to it a sideways movement of the pair within 1.0855–1.0915 should change to the upswing to the level of 1.0960. The level of 1.1100 was indicated as the next resistance level. Practically, that was exactly what happened: early in the week the pair was moving eastwards within the predetermined range, and then it went up, and toward the very end of the week it surged upward striving to reach the high of 1.1000. However, it failed to reach it, and it wrapped up the week 25 points above the first resistance level – at the level of 0.0985;

 GBP/USD. Here 80% of analysts reckoned that in the near future the pair would start declining first to the level of 1.2100, and then – to 1.2000. This happened on Tuesday, October 25, ahead of the speeches of the governor of the Bank of England, Mark Carney, and the president of the ECB, Mario Draghi. Just within 3 hours the pair lost almost 160 points and reached the bottom at the level of 1.2082, and then – in a similar rapid manner – it regained almost all losses, wrapping up the week around the one of the strongest October levels of support/resistance – at 1.2185;  

 the forecast for USD/JPY could be reduced to two trends – first the pair’s rise to the level of 105.00, and then its declining to the support in the area of 103.20. Indeed, starting from Monday the pair went up and as early as Thursday it reached that high. On Friday it went up further 50 points, following which the bulls took well-deserved rest, and the bears, meeting almost no resistance, immediately pushed the pair 100 points down; 

 as for the forecast for USD/CHF, the majority of analysts, indicators and the graphical analysis by common consent voted for another breakthrough of the pair to the north – up to the high of 1.0000, and then – rebound to the area of 0.9700-0.9800. The level of 0.9855 was indicated as the next support level. The forecast was if not 100%, then at least 99.98% accurately fulfilled, because the pair reached that very high of 0.9998 on Tuesday, October 25. The promised rebound also occurred – and exactly to the specified support as well. The pair ended the week at the level of 0.9875.


 

Forecast for the Upcoming Week.

Summing up the opinions 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 :

notwithstanding last week’s rise of the pair, 70% of experts continue to insist that the pair should anyway go down at least to the level of 1.0800. As for the indicators on H4 and D1, they have taken a neutral stance. However, the graphical analysis on H4 reckons that the pair, having moved down to the level of 1.0900, will reverse again to the north and will move towards the resistance of 1.1100. Around 30% of analysts agree to this scenario. At the same time, we should keep in mind that the upcoming week is busy in terms of significant economic events, including release of the United States Federal Reserve Interest Rate Decision on Wednesday, November 2, and release of Non-Farm Payrolls (NFP) on Friday, November 4. The upcoming USA presidential elections, scheduled for November 8, should also be taken into account. All these events can lead to great exchange rate fluctuations, which is fraught with not only large profit but also huge risks for traders; 

next week not only the US Fed, but also the Bank of England will announce its Interest Rate Decision (Thursday, November 3), however, the analysts don’t expect any surprises from it. As for their opinion on GBP/USD, around 70% of them point to the south, predicting the fall of the pair to the level of 1.2000, and maybe even 100 points lower. The indicators and the graphical analysis on D1 fully concur with this opinion. However, the latter deems it possible that before going down the pair can rise to the resistance of 1.2250. The next resistance will be at 1.2330.

USD/JPY. For a fifth week in a row the experts have no consensus on the future of this pair: 45% vote for the pair’s rise to the area of 105.50–106.00, 25% - for its fall to the support of 102.80 and 30% - for a sideways trend. As for the indicators and the graphical analysis, they reckon that the pair will try to re-approach the resistance of 105.50, and then will literally nosedive – first to the support of 104.00, and then even lower – to the area of 102.40–102.80. But, as with both foregoing cases, here you should keep in mind the significant news from the USA, and also release of the Interest Rate Decisions of the Bank of Japan on Tuesday, November 1;

as for the forecast for USD/CHF, around 70% of analysts believe that the pair should definitely return to the level of 1. 0000.The remaining 30% reckon that it hasn’t finished its temporary decline to the area of 0.9700–0.9800. The graphical analysis on H4, which believes that the decline can be even greater, also agrees with this scenario, and the pair will reach the bottom at the level of 0.9680. There is also a third opinion, according to which, due to the events mentioned above, in the near future the pair will just mirror EUR/USD acting, a negative correlation with which is most noticeable during the periods of heightened volatility.


 

Roman Butko, NordFX

 

Notice: These materials should not be deemed as a recommendation for investment or guidance for working on financial markets and they are for informative purposes only. Trading on financial markets is risky and it can lead to loss of money deposited.

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