We are expecting the USA, Switzerland, and Canada. I am not going to be exaggerating if I will say that markets are going crazy.
UK GDP result was 2.0%, underestimated the forecast of 2.2%, and under the previous Year number 2.2%. On the other hand we have seen over expected Canadian inflation number of 2.1% which was much better than the previous year number (1.5%). The number left significant effect on the Canadian dollar by Friday. Moreover, traders short dollar before other currencies after they doubted a next month interest rate hike according to the interpretation of the released FOMC minutes.
It is important to highlight the previous week forecast. EUR/USD as forecasted in our previous analysis, traded in narrow range (1.0620-1.0500). AUD/NZD raised at the opening of the week reached 1.0770, then dropped closing 20 pips lower at 1.0657. Yen pairs moved in a tide range. Finally, we forecast the CAC40 to soar at 4932, it soared to 4953.
Next is the GDP week. We are expecting the USA, Switzerland, and Canada. I am not going to be exaggerating if I will say that markets are going crazy. We can see S&P 500 soaring without corrections, currencies are not compatible with technical indicators. Markets are fundamental justification, Trump tax plan and the elections in Europe are all influence markets price action.
The pair is showing good divergence, where we should expect the first target at 23.6 level (1.0015), then 38.2 level at (0.9930).
Situation on the EUR/USD did not change as it is waiting for motivation. It is expected to continue to move in the same range between 1.0830-1.0520.
I anticipated this pair to drop during the previous week and I have a stronger believe in the upcoming week that it will continue to drop. Previous week chart formed a hummer; in addition to that you find the symmetric stochastic touched the top of the triangle as shown in the chart. I believe that pair is dropping to the 23.6 level at (1.0624) then 38.2 level at (1.0550).
As we mentioned in the previous month, it is still moving in range movements. We can also use this as good hedging opportunities. USD/JPY between (111.00 – 115.40) CAD/JPY (82.00 – 88.80) CHF/JPY (109.90 – 115.00) NZD/JPY(84.14 – 80.42).
Good Luck