Weekly Forex Forecast - 19 March 2017
During the past week, the Euro initially fell against the US dollar but found enough support of the 1.06 level to turn things around and form a relatively positive candle. I believe that the 1.08 level will offer resistance but if we can break above that level, the market should then go reaching towards the 1.10 handle. An exhaustive candle near the 1.08 level could lead to selling.
The US dollar fell against the Canadian dollar during the bulk of the week, but I think the 1.33 level is offering a little bit of support. Pay attention to the oil markets, if they drop, this pair should continue to rise. If we can break above the 1.35 handle, the market should be good to go towards the 1.45 handle over the longer-term.
The US dollar fell against the Japanese yen this week, breaking well below the 113 handle. However, I recognize that the 112 level has been massively supportive, so I suspect that any type of balance or supportive reaction in that area could end up being a nice buying opportunity. Currently, it looks as if the market is consolidating, but quite frankly I think that the Federal Reserve is going to raise more in the future, while the Bank of Japan is simply light-years away from raising interest rates.
The Australian dollar continues the power higher against the New Zealand dollar, and quite frankly the only thing that caused any type of trouble in this market over the past week was the psychological significance of the 1.10 handle. I think pullbacks continue to be buying opportunities, and the 1.08 level should now act as support. Longer-term, I expect that this market will reach towards the 1.1250 level. Keep in mind that gold has a major influence on the Aussie dollar, so if it goes higher, this market should as well.