In today’s Forex Forecast, we give you the outlook for FX majors and Gold prices, with Steven Woodcock, Senior FX Analyst at Plutus FX.
GBP/USD: Still a range trade
Woodcock notes that GBP/USD is down because of the dovish Carney but remains a range play. 1.54 remains the top end of the range, and the cross is now approaching the bottom of its range, having broken below the daily support.
Woodcock further suggests to buy the lows, play the range, and sell it around 1.5250-1.5260 area.
USD/CAD: Oil trade
Woodcock believes that USD/CAD still remains an oil trade, but remains a technical trade. He holds a long-term target at 1.55, and notes that 1.35 level remains key for the upside.
Woodcock suggests buying the cross on dips towards 1.2820 area.
USD/JPY: Still calling for a pullback
USD/JPY remains in its uptrend, gradually climbing at higher levels. While Woodcock maintains a long-term target for the cross at 140-145 area, he sees a pullback ahead in the pair towards its recent lows, choosing to be a seller at 122- 122.50 levels.
EUR/USD: 1.0450 low in sight?
Woodcock comments that the pair saw a selloff after December Fed rate hike expectations gathered pace. We are at the bottom of the range, and breaking below 1.08 will trigger stocks and might lead to a move towards 1.0450 area.
Gold: Running out of steam on the downside?
On the technical outlook for Gold prices, Woodcock sees the precious metal as a fair buy. It still remains in the downtrend.
Further speaking on technicals, Zak Mir, mentions that the yellow metal might be running out of steam on the downside.
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