Start the week of August 8, 2022 with our #Forex predictions targeting major currency pairs here.
The EUR/USD currency pair has been swinging back and forth over the past week as we continue to see significant noisy behavior between the 1.01 level and the 1.03 level. This is a scenario where we see a lot of unstable behavior, and I think that will continue to be the case. Going forward, it’s about mitigating the signs of near-term burnout, but recognizing that we don’t have a long way to go. If you fall below the 1.01 level, it is possible that we will go down to the parity handle.
The GBP/USD currency pair initially rallied during the trading week, but gave banks gains when we hit the 1.20 level. The 1.20 level is an important support level, and it seems to me that the market is trying to break through it. It’s also worth noting that the 50 week EMA is starting to fall below the 200 week EMA, which signifies how negative things are. At this point, it’s worth noting that interest rates in America spiked on Friday, which is likely a potential catalyst for further US dollar strength later on. I prefer to short signs of exhaustion after short-term rallies, as has been the case for some time.
The AUD/USD currency pair attempted to break above the 0.7050 level, an area that has been imported a few times now, so as long as we stay below, I think it is likely that we will continue the sellers on short-term rallies. On Friday, we attested to the 0.69 level, an area that has been imported more than once. If we break below the low of the candlestick for the trading week, then it is possible that the market will turn towards the 0.68 handle, maybe the 0.67 level. Anything below 0.67 would be extraordinarily negative.
On the other hand, if we were to break above the 0.7050 level, it is possible that we could go for the 0.71 level, but that seems less likely now.
The USD/JPY currency pair initially fell during the trading week, but then turned back near the ¥1.31 level to show signs of life. By the end of the week, we had made some pretty sizable highs and broken through some minor resistances as US interest rates rose significantly. This remains a “buy on dips” scenario.
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