EURUSD forecast for the coming week
The USD appreciated last week, as expected in my other posts. We had a week loaded with high profile event risk. I believe ECB intentionally announced its dovish policy and just a day before that FED had one its most hawkish announcements.
Also the influence of the FED monitory policy caused precious metals depreciating during the Friday session. I posted the following call for Gold and hour after ECB when it was round $1308.
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In this post I review:
But before I start reviewing these two currencies, see the EURUSD 6 month candle. The last candle is still open but will be closing in two weeks. It is very as it pulling back from EMAs and it may even close as a candle.
Regarding USD, first chart is 6 months USD equally weighted average chart (to replicate see the screenshot title). It is unlike EURUSD which was shown above.
On daily also we have a and the upper band of the flag was broken on Friday session, when we had a pullback in DXY .
DXY daily also is about to break the Inverted . On Friday it reached to 95.13 and could not break the Neckline.
also this is DXY 6 months chart
Shanghai compost is the same as Emerging markets and opposite correlation with USD expected. It broke the Neckline too.
As USD has been becoming a stronger currency we observe more capital coming into Treasury bonds as a safe heaven and not in “Gold”.
Here is junk bonds see the follow of the capital in this market.
and that caused treasury Yields to retreat in contrast to the price on the Friday session.
Nikkei has a positive correlation with USD and it is heading higher and although the Friday’s candle is not green but closed 0.5% upper than the gap.
NOW LET’S LOOK AT EURO
This is the monthly EURO weighted average
And this is weekly
This is weekly EXY , pulling back from the midline of the channel
And see the pullback from resistance for Euro futures
Looking at the European indices they all rallied as we expect opposite correlation between the currencies and indices. This is EUSTX50
See the pullback on weekly German Yields
and France Yields which I think it made a false breakout of the and we may see something like Gold for this market.
An Italy Yield
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