In today’s forex forecast, we discuss the outlook for EUR/USD, GBP/USD, EUR/GBP, and USD/JPY, with Steven Woodcock, Senior FX Analyst at Plutus FX.
GBP/USD: Still a range-trade
Woodcock believes that despite the slide to 1.50, GBP/USD remains a range-trade. On the trade setup, he prefers small longs, as the cross trades near a key psychological number.
He sees the cross heading lower towards 1.47 gradually.
USD/JPY: Trading firm
USD/JPY trades firm, and might be eyeing 124.90 levels, according to Woodcock.
EUR/GBP: Need to take out lows to go further bearish
Woodcock says how EUR/GBP saw a classic bullish formation till 0.75 area and then failed miserably. He prefers to be a small buyer, with the cross bouncing off the psychological 0.70 number.
While the momentum favours the downside, the chart formation suggests the pair remains near the bottom at the range, notes Woodcock. He adds that EUR/GBP needs to take out the 0.70 low to go further bearish.
EUR/USD: Wary on shorts
EUR/USD saw a weekly close below 1.08, which is bearish, Woodcock advices adopting caution on shorts as price action suggests a 80-100 points move could be seen on either side.
EUR/USD remains offered around 1.0850-1.0840 area, and sees a strong resistance around 1.1150 levels.
