Daily Forex forecast analysis 01-27-2017 – 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 01-27-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & USDCAD
As we mentioned in our yesterday market commentary, we expected the price to correct lower, and that actually happened, breaking the range to the downside and sliding towards 1.0656 support level.
Considering that on the 4h chart, 5 candles in a row have closed red,we expect the price to continue lower.It could find support around 1.0656 yesterday low, and on a break below, 1.0623 and 1.0588 would be exposed.
If the market starts to trend higher,we could see a retest of 1.0719, where the bottom of previously broken range lies.A strong move above it,would expose 1.0770 and 1.0795.
-From EU, at 07:45am GMT, Consumer Price Index YoY for France would be released.(0.8% previous, no forecast). Also, Gross Domestic Product QoQ will come out at the same time(0.2% previous, no forecast).
– From US, GDP Index will be released at 01:30pm GMT(1.4% previous, 2.1% forecast).Also GDP Annualized Q4 will come out as well(3.5% previous,2.2% forecast).
The range that formed between 0.9973 and 1.0018 still holds, having formed around 100 hours ago. Considering that the market had been consolidating for a long period of time, watch closely for a breakout, as usually, after consolidations like this one, the price would move aggressively into one direction.
If it breaks to the upside, it could test 1.0034, although we think that if it manages to get there, a further extension upward will follow, towards 1.0058 and even higher towards our key resistance area located around 1.0113-1.0121.
If the market breaks to the downside, more aggressive selling will follow, towards 0.9995, 0.9928 and 0.9887, which represent areas where buying interest might emerge again.
- There are no headlines from Switzerland today.
- Watch for the GDP figures from the US that’s due to being released later.
We suggested yesterday that the price could move up towards 1.2673,and then it would start to correct lower. As you can see from our chart, the price tested the level and then slumped 120 pips.
Looking ahead, we think the correction might extend below yesteday’s low, only to find support around 1.2550 or 1.2520. We think that is a strong support area and buying interest might emerge again if the price manages to get there.
If that level breaks, further slide would follow, with the price heading towards 1.2488 and even lower to 1.2415,where we think another key support level is located.
-There are no economic news coming out from UK, but this afternoon the PM will meet with Donald Trump. Any headline regarding the future relationship between the two countries, could spark some volatility in the market.
In our Monday market commentary, we mentioned the possibility of a double bottom forming around 112.55 level and as you can see the price rose since then, currently at 115.05, so up 250 pips.
At the time of writing,the market is very close to our key resistance area around 115.06-115.21, and we think it might encounter some selling pressure at this point. If,however, that area is breached, further gains towards 116.01 would follow.
If the key resistance area holds, the market would start a new leg down, heading to 114.40 or 113.80.
- Watch closely the GDP figures that are due to being released later. The market would move strongly if the numbers would deviate much from the forecasts.
Dollar-cad consolidated for the last seven 4h candles, retreating around 60 pips. Looking at this point,we think the downside is still in play, the corrective structure being a nice selling opportunity.
So, if the correction extends higher, we think it might be capped by 1.3135 area, or 1.3173. There is a slightly high possibility that selling pressure could resume at one or both of those points.
If the market starts the leg down, 1.3028 key support level will be on deck.We think this level should hold, any breach below to be capped by 1.2998. Expect huge buying interest to emerge at this area, as we ‘ve seen that happening in the past as well.
There are no headlines from Canada, only the US figures being the ones you should watch.