Daily Forex forecast analysis 01-25-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market, These analysis are published here each day.
Forex Forecast Analysis 01-25-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & USDCAD
The price continued to consolidate yesterday, forming a range between 1.0719 and 1.0772.Even though the upside seems intact at this point, the breakout of the range would be the key element, determining the future direction of price.
As long as the price stays in the range, playing both sides of it would be the best strategy.However, if the market breaks to the upside, the price could head towards 1.0799 key resistance area.
If the range breaks to the downside, the correction could extend towards 1.0685, or even lower towards 1.0656, December 30th high.
-From EU, IFO Business Climate(Jan) for Germany will be released at 09:00am GMT(previous 111.0, forecast 111.3).
-From the US, Housing Price Index will be published at 02:00pm GMT(0.4% previous, no forecast).
The market managed to form an upward consolidation move yesterday, gaining around 40 pips. At this point in time, the price action suggests the upside could continue, with very mild pushbacks to the downside.
The price currently lies around 1.0018, where one of our resistance areas is located, and if it manages to break higher,we think it could head towards 1.0034 or even higher towards1.0083, on a strong impulsive move.
If the downside resumes, 0.9995 could be a level where buyers might step in, and also below around 0.9958, yesterday low.
-From Switzerland UBS Consumption Indicator will be released at 07:00am GMT(previous 1.43, no forecast).
As we mentioned in our yesterday commentary, the area around 1.2430 was a key level, the market testing it and then starting a leg up of around 130 pips. However,it stalled around Friday’s high, and it’s been consolidating throughout the Asian session.
Looking at this point, there seems to be a range in play, between 1.2541 and 1.2430.If the price doesn’t manage to break on either side, the ranging environment would be intact.
If it breaks to the upside, we think it could open room towards 1.2674 resistance level.On a break below, 1.2414 lies ahead and 1.2371, in case of a stronger bear move.
-From UK, CBI Industrial Trends Survey-Orders will be released at 11:00am GMT.
Also watch for any new comments regarding yesterday Supreme Court decision, that ruled out there is need for a Parliament approval before Article 50 is activated.
We mentioned yesterday that considering the price stalled exactly around 112.55,where a strong support was located, could mean the price would correct to the upside and that actually happened, gaining around 100 pips.
As you can see from our chart, it was capped by 113.80 level, but considering there was a very mild reaction around it, we suspect the market would break higher. If it does, 114.40(January 19th low) would be a next potential target. On a larger move, our last week resistance area around 115.06-115.22 could provide stronger resistance from the sellers.
If the upward move fades, it could head towards 113.18 swing point, and on a break below, we might see a retest of 112.55 key support area.
Dollar-cad extended the leg down yesterday, testing 1.3296 key resistance area and then selling around 170 pips.Altough it has managed to consolidate for the last 12 hours, the downside seems intact, any pullbacks to the upside representing new selling opportunities.
If the correction extends upward, 1.3189 area, would provide some new selling pressure, while a break above, could send the price towards 1.3205.
If the down trend continues, we think there is a strong possibility that the market would test again 1.3081 and 1.3028. These level could provide renewed buying interest from the market participants.