Weekly Forex Forecast: Stocks still Bullish but currency markets warn of Deflation [Video]

John Fortune Get Me Trading

Market covered in this weeks Weekly Forex Forecast:

DXY, EurUsd, AudUsd, NzdUsd, UsdChf, UsdJpy, GbpUsd, WTI, UsdCad, CadChf, CadJpy, AudChf, AudJpy, NzdChf, NzdJpy, SPX, NDX, Nifty, XauUsd, XagUsd & BTCUSD!

Weekly Notes

Currency markets are warning of a Deflationary outlook with Risk Off set ups apparent accross the board. The Chf & Usd look particularly strong this week with the Jpy also looking to provide good long opportunities.

Commodity currencies look to be the most exposed this week with Aud, Nzd & Cad looking to provide good short opportunities.

With Crude Oil recently rolling over last week the Canadian Dollar looks particularly exposed to weakness with UsdCad longs & CadChf plus CadJpy shorts looking like good set ups.

With this in mind, AudChf, NzdChf, AudJpy and NzdJpy all look set for further declines and are some of my top picks this week alongside their counter parts AudUsd and NzdUsd.

Stocks are still holding their current uptrend structure but broad Risk Off moves in Forex markets may point to a bumpy road ahead for Stocks over the next month or so.

Author

John Fortune

Get Me Trading

John Fortune is a professional trader and Head Analyst at Get Me Trading. John has over a decade worth of experience in the Financial Markets and produces a Weekly Forex Forecast covering over 30 markets each weekend.

EUR/USD flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.