Forex Weekly Weekly Outlook
The EUR was up 0.19% against USD on Friday during USA session. 1.1153 was the weakest level in last week since september 21st ,2016.
Last week EUR/USD stayed in range of 1.1122/1.1326 and the outlook is unchanged yet. Initial bias stays neutral this week . On the upside, break of 1.13471 resistance should extend the whole choppy rise from 1.0911 and would target 1.14731 resistance next. At the moment break of 1.1122 will confirm completion of corrective rise from 1.0911. In that case, EUR/USD will target a test on this key near term support level.
In the long term picture, price actions from 1.6039 (2008 high) is viewed as a corrective move. There is no clear sign that it’s completed yet. And we’ll still expect more downside towards 0.8223 low as long as 1.2042 resistance holds.
Today during asian GBP falls -0.25% against USD.
GBP/USD lost its momentum near 1.2865 and turned sideway. GBp has strong popssibilities of deeper fall in this week, as long as GBP holds 1.3120 resistance. Consolidation pattern from 1.2794 should have completed at 1.3444 and the larger down trend is possibly resuming. Further break of 1.2794 will confirm this bearish case and would target next projection level at 1.2457. On the upside, above 1.3120 minor resistance will possibly extend the consolidation pattern from 1.2794. In that case, upside should be limited by 38.2% retracement of 1.5016 to 1.2794 at 1.3643 and bring down trend resumption eventually.
In the analysis picture shows no change in the view that down trend from 2.1161 is still in progress. Current momentum suggests that the down trend will go deeper than originally expected. But at this point, we’d anticipate strong support around 1.2457 to contain downside. We’ll assess the outlook again as price actions unfold.