In today’s Forex Forecast, we offer the outlook for EUR/USD, USD/JPY, USD/CAD and Gold price, with Steven Woodcock, Senior FX Analyst at Plutus FX.
EUR/USD: Range play
Woodcock notes that people are still digesting yesterday’s ECB action, but the EUR will likely hold 1.11 level owing to some Chinese interest around the same levels.
The EUR trade would be a tough one today, as it remains a data light day ahead, and with the traders remaining confused. While most think that the EUR is heading towards parity, the single currency remains in its range, only seeing a quick action downwards after yesterday’s dovish ECB, according to Woodcock.
On the key levels, Woodcock highlights the first resistance at 1.1160 and support around 1.1060-1.1070 area, and suggests playing the range.
USD/CAD: Favouring the upside
Woodcock says that the outlook for USD/CAD remains positive, with the trend for the remains to the upside.
Gold: Sell when it looks strong
Woodcock notes that Gold is replicating the Cable trade – going lower when it looks bid. He suggests selling the precious metal when it looks strong, noting key levels to be $1200 on the upside and $1145 on the downside.
USD/JPY: Trade the range
USD/JPY remains a range-trade, having seen buying interest around 118.50 and selling towards 121.00 levels. He further suggests trading the flag formation seen on the cross, and sees fresh offers coming in.
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