Azerbaijan, Baku, July 21 / Trend /
Technical analysis into major currency couples and weekly forecast (July 20-25)
|
Parabank Couples |
Technical analysis |
Forecast |
|
EUR/USD |
Last week, the USD dynamics showed the pressure of high propensity of investors to take risks. We believe favorable report of Goldman Sachs, as well as data on retail sales and producer prices in the United States raised investors' mood. This means when the stock indices in the United States are growing, investors turn to more risky instruments, like European stocks and shares. As a result investors go away from asylum currency (U.S. dollars). Continuing ascending trend is in danger and the short term correction is expected. Strong barrier option runs at the level of 1.4200 runs. If the couple is able to close Monday at a level below 1.4200, it might signal correction. Otherwise, the goal is 1.43, and then 1.44. |
Short-term goal
1.4050 |
|
USD/JPY |
After a possible slight correction, in future the couple will continue to rise. Price is at the resisting level on 94.50, while growth has slowed but not stopped. Before continuing the restoration of a couple, fluctuations are possible between 94.00 and 95.00, at the same time clearing up the situation in global markets. Technical indicators warn of descending activity of bulls and possible correction. Oscillator MACD gives a double short signal to sale. Indicators are located in the zone of repurchase. However, a couple is expected to increase in the long run because the yen is becoming less reasonable as a reserve currency on the backdrop of recovery of stock markets. |
Recommendation: To open small positions for purchase to fix on the level of 94.00 |
|
GBP/USD |
In the short term the couple is expected to decrease, but grow later on. Prospects of British economy have slightly improved, prices outgoing from horizontal side corridor of 1.64 - 1.6450 is explained not only with rising U.S. stock markets, but positive statistics of UK consumer sector and expectations for economic growth. However, the British bank's strategists emphasize that they remain optimistic about the long-term prospects for the pound, both in couple with the U.S. and with euro. If the couple hits 1.6500, we can witness a goal of 1.6700 this week |
To open positions for purchase in case of breaking level at 1.6500 |