Weekly Forex Forecast
The Australian dollar initially tried to rally during past week, but then broke down from the 0.68 level. At this point, the market looks as if it is continuing to push lower. The Australian dollar is highly levered to the US-China trade situation which of course hasn’t made and progress and will likely get worse before it gets better. Friday, the Chinese announced a retaliatory measures which is likely to aggravate issues.
The Canadian dollar initially tried to rally against the Japanese yen last week, but as all risk appetite-based markets have shown, we had a very poor close to the week. At this point, if the Canadian dollar drops down below the ¥79 level, it’s likely that we will continue to go lower, perhaps reaching down to the ¥77 level. Ultimately, this is a market that continues to show a lot of weakness and with the oil markets falling, that should provide even more bearish pressure here.
The US dollar initially tried to rally during the past week but continues to find plenty of resistance near the ¥107 level. However, we continue to see negative news out there and it has sent this market down to the ¥105 level. At this point, if we break down below that level and then perhaps even the ¥104.75 level, we would then break the 100% Fibonacci retracement level and that could send this market much lower.
The British pound initially fell during last week but then turned around as it seems we are getting a bit of a short-covering rally.