Weekly Forex Forecasts

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Start the week of November 22, 2021 with our Forex forecast focusing on the major currency pairs here.

EUR / USD

The euro collapsed again last week as Austria decided to lock in. There have also been murmurs from Germany that the same could happen there, so this obviously goes against the value of the EU economy. Additionally, the European Central Bank appears to be stuck on an accommodating tone, so as long as there is a significant gap between the ECB and the Federal Reserve, it makes sense that the US dollar will continue to gain ground against the currency. common. Rallies at this point are likely, only because we’ve fallen so far, but I see these as selling opportunities on signs of exhaustion.

GBP / USD

The pound has rallied slightly over the past week, but as you can see the 1.35 level has offered resistance. It tells me that the pound is running out of steam and is perhaps about to crack. On a breakdown below the week’s lows, I suspect we will likely continue our movement towards the 1.30 grip, which now looks more likely than not. If we find ourselves at this point, we need to break above the 1.36 level for me to be comfortable going long in this currency. At this point, it’s all about the US dollar.

GBP / USD

AUD / USD

The Australian dollar initially rallied during the week but regained its gains fairly quickly. On the weekly chart, you can see that there is a major uptrend line that I have drawn, and we are sitting right above it. If we fall below the 0.72 level on a daily close, I think this market will likely start to collapse and continue to fall a lot more. Much will depend on Chinese national figures and, of course, commodity markets. It is to highlight that we’re starting to see a small change in a “risk-free” type world, and if it does, the aussie dollar will most certainly suffer.

AUD / USD weekly chart

GBP / JPY

The British pound spent most of the week trying to rally against the Japanese yen, but struggled in the 155 region. This is an area that has seen quite a bit of action lately, and the resulting reverse hammer suggests we might just be breaking down. Going below the 152.50 level, I expect this market to move towards the ¥ 150 level. On the other hand, it is just as likely that we will simply bounce between 152.50 at the bottom of the range for the week and 154.50 at the top.

GBP / JPY weekly chart

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