Forex Outlook 14 Jan 19

NZDUSD Outlook

The daily time frame we are currently trading in a bullish channel after retesting the support level from the neck and shoulders pattern that was broken a couple weeks ago.

The 1-hour time frame shows price trading in a bullish channel however there was a break of the trendline on this time frame and there is divergence showing on the MACD. Possible bearish move to the 0.67800 level before we continue higher.

USDZAR Outlook

On the daily timeframe price is currently trading on trendline support level and while it has consolidated it has formed a bearish wedge pattern. While the market is consolidating one needs to wait for a break of the wedge to either enter long ( buy ) or short ( Sell ). If prices breaks to the downside out short target would be 13.55 and if we break to the upside then one could potentially look to create news highs given the market structure at the moment.


USDCAD Outlook

Price has broken out of the bullish channel it has been trading in since Oct 18 and has consolidated between the 1.33 and 1.31 levels. Last week there was a break of the 4HR trendline and currently has flag forming which could signal a push higher to the 1.34 level if it breaks resistance.

The alternative scenario is that it breaks to the downside and continues its bearish momentum

CADJPY Outlook

2 weeks ago we had the flash crash however the pair still closed the week above the weekly support zone creating a classic pin bar. Since then price hasn’t moved much and is consolidating below the daily resistance zone. A break of the daily resistance level will see the pair push higher to the weekly resistance zone 83.91 before continuing its bearish momentum.

The alternative scenario is that it breaks support and with a valid retest of the support becoming resistance will lower to the 76.34 level.

The Bank of England

The Bank of England is the central bank of the United Kingdom. It was established in 1694 and was privately owned in the beginning, the Bank was nationalized in 1946 so now is completely owned by the UK government. BOE’s main reason to be is to maintain monetary and financial stability in the country. Some of its other tasks are producing secure bank notes, operating asset purchase facility and keeping the inflation low and stable.

The European Central Bank (ECB)

The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is the one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council, and the General Council. Mario Draghi, a member of the Executive Board, is also the President of this organism.

The Federal Reserve Bank (Fed)

The Federal Reserve System (Fed) which is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System’s structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.



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