The Forex Zone Forecasts – Erratic FX consolidation dominates into holiday season


An erratic tone into the holiday season for Forex markets with the Fed on hold, the UK election behind us and the US-Sino trade deal done, for now.

The Forex Zone looks at day trade views and forecasts for the major Forex rates; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and USDJPY.

EURUSD: Erratic, but upside bias still

An erratic tone Thursday, to probe just above  1.1142/43 resistances to 1.1144, then setback but to hold in the  1.1109/01 support zone, to hold onto a positive bias from this week’s spike just above the 1.1173 resistance (to 1.1175) after the mid-December surge above the peaks at 1.1176/83, to keep risks higher Friday.

  • We see an upside bias for 1.1142/44; break here aims for 1.1173/75 and maybe 1.1197/1.1200.
  • But below 1.1107/01 opens risk down towards 1.1054.
EURUSD Chart 2019-12-20

GBPUSD: Threat stays lower to key 1.2983 

A Thursday plunge below key 1.3051 to switch the intermediate-term outlook from bullish to neutral, with a range now seen as 1.2983 to 1.3422, with risks skewed lower.

Furthermore, this negative price action keeps the threat lower for Friday.

  • We see a downside bias for 1.3030; break here aims for critical 1.2983, maybe 1.2930/29.
  • But above 1.3088 opens risk up towards 1.3132 and maybe 1.3174.
GBPUSD Chart 2019-12-20

USDCAD: Bias stays lower 

A low-level consolidation Thursday after Wednesday’s selloff below 1.3142 to probe lower through 1.3110/07 supports, to reinforce Tuesday’s rebound stall at the down trend line from early December and capped by the 1.3205 resistance level, to keep risks lower for Friday.

  • We see a downside bias for 1.3098; break here aims for 1.3069 and maybe key 1.3037.
  • But above 1.3164 opens risk up to 1.3205 and maybe 1.3235.
USDCAD Chart 2019-12-20

AUDUSD: Positive theme resuming

A firm rebound Thursday to prod above .6898 resistance, having held through midweek above the .6826 support at the new .6835 level and more notably at the up trend line from late November, to retain a positive tone from the mid-December bull extension above the peaks from early November at .6928/30, plus from the earlier December surge above the .6862 peak and key .6865 level (for an intermediate-term bullish shift), to keep the bias higher into Friday. 

  • We see an upside bias for .6898/6900; a break above aims for .6939.
  • But below .6835 and .6826 opens risk down towards .6797/90 and maybe key .6751.
AUDUSD Chart 2019-12-20

NZDUSD: Upside bias

A Wednesday-Thursday rebound after Tuesday’s setback held above the support level at .6548 (at .6551), to resume bullish forces from the mid-December rally to another new cycle high above .6622 resistance (to .6636), and the prior rally above key .6591, to keep the bias back higher into Friday.

  • We see an upside bias for .6614; break here aims for .6636 and maybe .6643.
  • But below .6551/48 opens risk down to .6518/17.
NZDUSD Chart 2019-12-20

USDJPY: Upside bias, despite dip

A Thursday dip just below minor support at 109.17, but to bounce from just below off of 109.15, after the solid Monday-Wednesday consolidation, to retain upside forces from the mid-December surge above resistances at 109.00 and 109.21 close to the 109.73 cycle peak, to keep the bias higher into Friday.

  • We see an upside bias for the key 109.73 peak; break here aims towards the psychological/ option level at 110.00 and maybe 110.37.
  • But below 109.17/15 quickly aims for 108.91/90 and opens risk down to 108.53, maybe 108.36.
USDJPY Chart 2019-12-20

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *

Latest Related News

Pound aims higher – GBPUSD forecast

Global financial markets have shifted to more of a “risk on” theme since the start of this week, rejecting the “risk off” phase seen at the beginning of April, last week.This has been in reaction to coronavirus new cases/ deaths showing some signs of slowing down in some parts of Europe (Italy and Germany) and some US States (NY State).This “risk on” phase has seen… Continued

Possible Triangle on USDCAD Points Higher – Elliott wave analysis

USDCAD is in a five-wave recovery up from January, however currently is consolidating within a temporary pullback seen in the middle of a much stronger uptrend. We see latest sideways and choppy activity as a wave 4) which can be a triangle in the making, and which points above the 1.435 and into new highs for a wave 5). A strong rally above the upper… Continued

Markets calming, consolidation themes

Macroeconomic/ geopolitical developments Relatively speaking, compared to the chaotic developments throughout March, the end of the month and move into the second quarter and April, has seen a lack of significant developments on the geopolitical side.Yes, the COVID-19 coronavirus continues to spread globally, with the current epicentre shifting to the US, but still with cases and deaths on the rise in Europe. Practically all European… Continued

US Dollar stays firm, aiming higher

Pound respects major resistance (GBPUSD)Euro breaks down (EURUSD)Positives appear in Dollar-Yen, as it de-correlates from equities (USDJPY) Continued

USDJPY aiming back lower (USDJPY forecast)

Global financial markets have shifted back to more of a “risk off” phase since the start of Q2 into April, with stock averages lower (see our recent reports on the DAX and S&P500 ).In turn, this “risk off” phase has seen broader US Dollar strength resuming, except against the Yen, with the safe haven Japanese currency probing lower against the US Dollar.Despite a small USDJPY… Continued

Forex Brokers in your location