Forex Forecasts

The European debt crisis is pressuring Aussie to continue its downside movement against majors, where the Australian dollar is responding to the concerns as well as the proliferation of the debt-ceiling debate in the U.S., which keeps risk aversion the focus. The Australian currency declined slightly against the US major counterpart as the Reserve Bank of Australia reported that the Bank won't increase the interest rates until the end of the year because of the current situation in Australia along with the European debt crisis that affects the global economy and accordingly the recovery in Australia; the Bank also noted that the stronger Australian dollar has dampened part of economy during the previous period. On Wednesday at 00:30 GMT, the Australian economy will release the Westpac Leading Index for May, where the previous reading was 0.2%. The Australian Consumer Inflation Expectations for July will be released at 01:00 GMT, following the previous 3.3%. The U.S. economy will take the lead at 14:00 GMT with...

The AUD/NZD pair stabilized around its lowest level in 11 months, where the Australian dollar remained weak after the RBA's July minutes; while the New Zealand currency remained the favorite currency for traders. Moreover, the Australian currency (Aussie) has declined slightly against the US major counterpart as the Reserve Bank of Australia reported that the Bank won't increase interest rates until the end of the year because of the current situation in Australia along with the European debt crisis that will affect the economic global stability and the recovery in Australia, the Bank noted that higher Australian dollar has dampened part of economy during the previous period. The Australian dollar could not keep its gains against the dollar or the yen, as the RBA's dovish stance was not able to give Aussie enough support to face the strong dollar. The New Zealand dollar continues its upside movement after the strong CPI increased expectations that the RBNZ is to rise the interest rate during...

  The USD/JPY had a fairly quiet day on Monday as traders sold risk, but did not get involved in this pair. The prevailing consensus is that the central banks are obviously watching this pair intently, and as such – any big move down could trigger intervention. Because of this, we don’t want to be involved in this market to the downside, and are looking for a reason to buy. We haven’t found it yet though.

  The USD/CHF pair rose on Monday, after gapping lower at the open. The pair is most decidedly bearish, but this move may lead the way to a bounce of sorts in the market. Any serious trader knows that these bounces are to be sold as the market is so weak. The 0.83 area above would be a perfect spot to see bearish price action from which to sell.

  USD/CAD rose on Monday, but fell a bit during the late hours of the session. The pair is still in a bearish run, and looks set to go lower before it is all said and done. The breaking of the lows on Monday could possibly be the next selling signal in this market. We also like selling the rallies that appear in USD/CAD.

  The NZD/USD pair fell on Monday, but bounced towards the end of the day again as it appears the uptrend simply is too strong to cause any significant drop in price for more than a few hours. The pair is a bull pair, and buying is the only thing to do. We like buying this pair on dips, and will not sell it.

  The GBP/USD pair fell on Monday as traders shed risk and rushed for safe haven assets like the USD. The pair bounced off of the 1.60 level, but appears that it will attempt to finish near it – hardly a sign of confidence in the Pound. The pair needs to close below 1.59 in order for us to sell for the long-term.

  The GBP/JPY fell again on Monday, showing the inherent flight from risk that the market is currently showing. The pair is normally a great barometer for global risk, and will quite often fall when all other markets are doing the same. Therefore, this move could hardly be considered a surprise. The trend is down, and we like selling rallies because of that.

  The GBP/CHF pair continues its downward trajectory, even though the candle for Monday is going to be green at the end of the day. The opening saw a gap down and it should also be noted that the market fell towards the end of the session as well. The trend is simply too strong for GBP bulls to overcome, and as such – you should be selling rallies.

  EUR/USD had another bearish day on Monday, as the world sold off the Euro. However, as the Americans do on almost every day, they bought up the Euro, and seem to be the only ones supporting it at the moment. In the meantime, we seem to be in a sell the Euro during Asian and Europe situation, while the Americans are reckless enough to buy it. The 1.40 area is vital, and a new low would be a very, very bad sign.