The Forex Zone Forecasts – US Dollar weakens, with Pound to USD bullish


US Dollar shifts to a weaker theme across the major currencies, with the GBP USD Chart showing a bullish break

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

EURUSD: Bull theme intact

A firm rebound and consolidation tone on Thursday to build on Wednesday’s spike above key 1.1097 (to signal an intermediate-term bullish shift) and whilst above 1.1053/51 to keep risks higher for Friday.

  • We see an upside bias for 1.1116; break here aims for 1.1140.
  • But below 1.1065/53 opens risk down to key 1.0980.
EUR USD chart


GBPUSD: Intermediate-term bull shift reinforced 

A Thursday push above 1.3136 resistance to build on Wednesday’s spike higher through the key cycle peak at 1.3013 (to signal an intermediate-term bull shift) to keep the bias higher for Friday.

  • We see an upside bias for 1.3177; break here aims for 1.3212 and maybe 1.3263.
  • But below 1.3120 opens risk down towards 1.3036.
GBP USD chart


USDCAD: Intermediate-term bear shift below key 1.3176

A Thursday probe lower as expected through key 1.3186/76 supports, to see an intermediate-term shift to bearish, to reinforce Wednesday’s plunge after the Bank of Canada interest rate decision through a notable support at 1.3251 for a Double Top pattern, to keep risks lower for Friday.

  • We see a downside bias for 1.3154/53; break here aims for 1.3107 and maybe 1.3075.
  • But above 1.3246 opens risk up to 1.3278, maybe towards key 1.3328.
USD CAD chart


AUDUSD: Risks remain up to key .6865

A Thursday consolidation above 6809 support to sustain upside forces from Tuesday’s advance (after the RBA Meeting) to overcome .6834 and .6841 resistances and stall ahead of the key .6865 level (at .6862), plus from Monday’s surging rally to reverse above the down trend lines from early November, to keep the bias higher into Friday. 

  • We see an upside bias for key .6865; break here quickly aims for .6887/91 and .6913.
  • But below .6809 quickly opens risk down to .6790, maybe towards .6751/49.
AUD USD chart


NZDUSD: Bull extension and upside risks

A Thursday advance to a new recovery high above .6541 to .6562, to reinforce Wednesday’s dip and a rebound from above our .6491 support through .6533 resistance, to build on Monday’s surge through the key .6466 peak (that signalled an intermediate-term bullish shift), to keep the threat higher for Friday.

  • We see an upside bias for .6562; break here aims for .6574 and maybe .6591.
  • But below .6499/91 opens risk down to .6458, maybe even .6422.
NZD USD chart


USDJPY: Bias to the downside

A negative consolidation tone Thursday to try to reject Wednesday’s rebound that was capped by our 109.21 resistance, to retain negative forces from Tuesday’s move down through the 108.78 swing support, plus Monday’s selloff through the up trend line from latter November, to keep the bias lower into Thursday.

  • We see a downside bias for 108.40; break here aims towards key 108.22 and maybe critical 108.87.
  • But above 109.21 opens risk up to 109.49, maybe 109.73.
USD JPY chart


Steve Miley

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 *

Forex Brokers in your location