Weekly Forex Outlook

Weekly Forex Outlook

Where will the currencies go this week?

Forex Weekly Outlook
Forex Weekly Outlook Getty Images

What can traders expect from the forex pairs this week?  Several of the curency pairs are overextended so there is a potential for market retracements or turns this week. 

 

EURJPY

The EURJPY weekly chart shows that it is oversold.  The last completed bar formed a reversal bar to the upside and the Stochastics is now turning up.  While this may not be a market turn, price will likely retrace back up to the ATR.  If the ATR (red plus sign) provides resistance, then new lows could form later this month.

Weekly Forex Outlook - EURJPY

USDJPY

The weekly USDJPY chart is very similiar to the EURJPY.  A reversal bar has completed and the Stochastics, which has been oversold, is now turning upwards.  A retracement back to the ATR is likely.  If the ATR provides resistance then the USDJPY could begin a new descent.

Forex Weekly Outlook - USDJPY

GBPUSD

The GBPUSD weekly chart shows a strong uptrend with hidden divergence off the last retracement.  This typically indicates that the previous high will be exceeded.

Weekly GBPUSD

This pattern is confirmed with the daily as there is a potential hidden divergence right at the ATR on the daily chart, as well.  With the Stochastics oversold, and the potential hidden divergence, the most likely path will be upwards with an expectation of the previous high (1.4352) being exceeded.

 

Daily GBPUSD

USDCHF

The USDCHF weekly chart shows that the Stochastics is overbought but there is not a reversal bar yet indicating a downward move.  If the ATR (red plus sign) acts as resistance, then the USDCHF could potentially make a new low in the coming weeks.

USDCHF Weekly Forex Outlook

USDCAD

The USDCAD weekly chart shows that the currency is making higher lows but the Stochastics is overbought.  The most likely path for the USDCAD is down towards the ATR (seeking a support area to help push price up).  If the ATR does provide the support needed then the USDCAD could begin making higher highs later in the month.

USDCAD


 

The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility. Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.

Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.