If you are wondering where some of the major currencies are heading in the next week, month or indeed the quarter, you can catch up with my latest market forecasts on FXstreet under Experts Forecasts and the link is here : Fxstreet Experts Currencies Poll
With the US dollar continuing to look weak on the daily dollar index chart, I am expecting to see further weakness for USD in due course, and this will of course be reflected in some further bullish momentum for the majors. For the EUR/USD the key technical level is now firmly in place at 1.3173, and once breached then expect to the see the pair continue to push higher to test the May high of 1.3283. A failure here may see a temporary pull back in the medium term. For Cable, Friday’s wide spread down bar took the pair back below the psychological 1.6000 price point on the daily chart, but provided the 1.5976 level holds early next week, then expect to see the GBP/USD bounce higher once again and back to test the 1.6279 level in the medium term.
The Bank of Japan will be breathing a sigh of relief following the recent weakness in the Japanese Yen, although Friday’s price action will be setting the alarm bell ringing again, as the pair failed to breach the all important 80.00 price level, and closed the week and the trading day with a narrow spread bar. However, if this is breached next week, then expect to see further upside momentum for the USD/JPY in due course, and a run to test the 80.56 level before continuing higher towards the 81.86 high of April.
Finally the USD/CHF continues to remain bearish, and with the EUR/USD looking bullish then expect to see the pair move lower in the short term. The key level here is the 0.9214 price region and if breached then expect to see the pair move lower to test the 0.9042 level of late April.
By Anna Coulling