In today’s forex forecast, we outline the targets and outlook for USD/JPY, AUD/USD, GBP/USD, USD/CAD and EUR/USD, with Steven Woodcock, Senior FX Analyst at Plutus FX, along with Nick Batsford, CEO at Tip TV.
AUD/USD: Woodcock believes that the cross is stagnating around current levels.
USD/JPY: Momentum exists, but slower climb ahead
Woodcock highlights that USD/JPY technicals suggests upside momentum remains on the cross, but needs a break above 125.50 area before seeing a fresh leg higher.
He further adds that the upside move now will be slower and slight measured.
USD/CAD: Dollar bull scenario still in place
Looking at the technical charts for USD/CAD, Woodcock comments that the cross looks like its heading for an upside break, but we are now at the top end of the range, and unless a break is seen, favour selling the topside of the range, with well-maintained stops.
The dollar bull scenario is still in place, and Woodcock sees USD/CAD at 1.50 levels ahead. Dollar will maintain momentum until Thursday, and won’t see many sellers, but the upcoming Fed decision is the biggest and will be key for the dollar.
GBP/USD: More offered than bid
Woodcock suggests selling any rallies on GBP/USD, with the pair struggling around 1.5050. While he maintains his bearish call for 1.45 levels, he advices to wait for a break below 1.50 to go bearish on the cross.
EUR/USD: Bottom end of the range
Woodcock says that the EUR/USD is currently consolidating, which is dollar led. He believes that the volumes will be cut later in the week.
While the markets remain on the side of the Fed raising rates in December, Woodcock believes otherwise, and hence notes that if the federal reserve fails to lift rates in December, the EUR can be an excellent buy opportunity at current lows.
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