Steven Woodcock – Senior FX Analyst at Plutus FX – joined Nick Batsford in the Tip TV studio to discuss his outlook on the near-term and mid-term movements for USD/JPY, GBP/USD, and other FX pairs.
“Normalising rates†misleading.
With market volatility persisting as the Fed continue to fuel speculation over a rate hike, Woodcock emphasised the importance of adapting one’s trading strategy to accommodate for these periods. He also believes that there is still unlikely to be a Federal Reserve rate hike in 2015, and questioned the goal of “normalising rates†as looking at things retrospectively can be misleading.
GBP/USD defying fundamentals.
Woodcock believes Sterling is typically a buy when it appears weak, and best to sell when it looks strongest. Following a spike aided by UK M&A, an inverse head and shoulders formation has emerged and, despite no fundamental reasons for sterling to be falling, Woodcock now has a downside target of 1.51.
USD/JPY to 140.
Despite the recent consolidation, Woodcock is still predicting USD/JPY to reach 140. However he is currently short on the currency, looking for another pullback and recommends playing the range and buying on the dips. Woodcock also recommended keeping an eye on EUR/JPY and GBP/JPY for guidance.
USD/CAD looking towards 1.55.
USD/CAD chart patterns are looking increasingly firm, says Woodcock. Having seen a pullback to 1.20, it could now be set to climb towards 1.55, however there is still a probable support level at 1.2820.
