Weekly Forex Forecast – EUR/USD, GBP/USD, USD/JPY, AUD/USD

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EUR/USD

EUR/USD has moved back and forth over the week as we continue to hold onto the parity level. At this point, it looks like we’re taking a little break, but I think we have to look at this through the lens of “short-term fading rallies” going forward. The market has come down to this level fairly quickly, but now that Jerome Powell has reiterated the Federal Reserve’s hawkish stance, it’s likely we’ll continue to see the US Dollar reign supreme. I like the rallies that fade, especially near the 1.03 level if we get all the way up.

GBP/USD

GBP/USD initially tried to rally during the trading week but gave back gains as we continue to see a lot of negativity regarding the British pound as the Bank of England has already declared that the UK would enter a recession. . For this reason, the market is likely to continue to fade, and possibly even worse off than the Euro. If we were to break above the 1.20 level, then you might be able to argue something else. So far, that looks very bearish to me.

GBP/USD

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USD/JPY

USD/JPY retreated slightly at the start of the week, but eventually rallied again. It looks like we will eventually try to break above the recent highs, maybe break through the ¥140 level. The ¥132 level below continues to be strong support, so I like the idea that any pullback is bought. If we fall below the ¥132 level, we start asking ourselves other questions at this point. If the Bank of Japan continues to struggle with rising interest rates, it is more likely than not that it will continue to be a “one-way trade”.

USD/JPY

AUD/USD

AUD/USD initially attempted to rally during the week but gave up much of the gains at the 0.70 level. The market saw a lot of volatility and a lot of resistance at the 0.70 level. If we can break above the 0.70 level, then there is a possibility that we can turn towards the 50 week EMA. However, it seems more likely than not that we will again threaten the lows after the Federal Reserve has spoken.

AUD/USD

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