Daily Forex forecast analysis 01-26-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market, These analysis are published here each day.
As you can see from our chart, the price consolidated yesterday between 1.0770 and 1.0719,suggesting that the bull trend is still in play. Even though a correction to the downside might happen, it’s very likely that the price would continue upward in the following days.
If the price breaks the range to the downside, it could slide towards 1.0685(January 12th high) or 1.0656(December 30th high) where buying interest might emerge.
If the range would break to the upside, we could see an extension towards 1.0795(December 5th high) or even higher towards 1.0849(October 25th low).
-From EU, Gfk Consumer Confidence Survey will be released at 07:00am GMT(9.9 previous, 10.0 forecast).
-From the US: Initial Jobless Claims at 01:30pm GMT(previous 234k, forecast 247k), CB Leading Indicator at 03:00pm GMT(0.0% previous, 0.2% forecast) and New Home Sales at 03:00pm GMT(0.592M previous, 0.588 forecast).
Considering there is a strong negative correlation between this pair and EURUSD, the price has also consolidated yesterday between 0.9973 and 1.0018,two levels that we mentioned in past days.
Looking at this point, there price didn’t manage to break the range, but the downside seems intact. If the price breaks to the downside we could see a retest of 0.9955 ,very close to January 23rd low. Breaking it would open room towards 0.9928(November 15th low).
If the price manages to break to the upside, 1.0034 and 1.0056 could be potential selling areas.
-From Switzerland, Trade Balance would be released at 07:00am GMT(3,636M previous, 2,810M forecast),Exports(18,787M previous, no forecast) and Imports(15,151M previous, no forecast).
The market broke above1.2541 level, and as we mentioned yesterday, that could open further room towards 1.2674 level. That actually happened,the price sitting around 1.2657 at the time of writing.
Looking at this point, the bull trend is strong, with very mild corrections to the downside.
If the market continues up, it could encounter sellers around 1.2674, as we already mentioned. A break above it could send the price towards 1.2725(December 13th swing high) or 1.2766( very close to December 6th high).
If the price starts to pull back,it could retrace towards previously broken level 1.2541, and if that doesn’t hold ,a test of 1.2512 might happen.
-From UK, GDP QoQ will be released at 09:30am GMT(0.6% previous, 0.5% forecast).
The price is stuck in a very tight range between 113.18 and 113.80, with the down trend still intact. Looking at this point , the market could head down, but it’s possible that an accumulation of buyers might have occurred around 112.55 and we could see an extension of the current correction.
If the market breaks the range to the downside, the price could head and test 112.55 level, where it found support 2 days ago.If it won’t hold and the price breaks lower, we think it would open further room towards 111.57 key support level.
If the range would break to the upside,the price could head towards 114.40, while above, 115.06-115.22, an area that we’ve mentioned last week and a place where price encountered strong sellers, might be exposed and very likely trigger some selling again.
Dollar-cad extended the leg down yesterday, closing 5 of the 6 4h candles red. Taking it into account, the price action suggests that there is very little buying interest at this point, and we might see prices continuing the slide.
To the downside, we think 1.3028 is a key support level, with the market bouncing strongly after testing it twice last week. A break below would expose 1.2998 area, where we think another support area is located.
If however, the market starts to form a corrective structure, we think the upside might be capped be 1.3081 resistance area,while above, 1.3106 Tuesday low, would probably spike selling interest again.