EUR/USD Forecast Poll
The FXStreet Forecast Poll about EUR/USD (Euro US Dollar) is a sentiment tool that highlights our selected experts' near and medium term mood and calculates trends according to Friday's 15:00 GMT price.
How to Read the Forecast Poll charts
Overview
This chart informs about the average forecast prices, and also how close (or far apart) sit the numbers from all participants surveyed that week. The bigger a bubble on the chart, means more participants targeting a certain price level in that particular time horizon. This distribution also tells if there is unanimity (or disparity) among participants.
Bias
Each participant's bias is calculated automatically based on the week's close price and recent volatility. Drawing from those results, this chart calculates the distribution of bullish, bearish, and sideways forecast prices from all participants, informing about sentiment extremes, as well levels of indecision reflected in number of “sideways”.
Averages
By displaying three central tendency measures (mean, median, and mode), you can know if the average forecast is being skewed by any outlier among the poll participants.
shifted price
In this chart, the close price is shifted behind so it corresponds to the date when the price for that week was forecasted. This enables the comparisson between the average forecast price and the effective close price.
price change
This chart tracks the percentage change between the close prices. Bouts of volatility (or extreme flat volatility) can be then compared to the typical outcome expressed through the averages.
smooth average
This measure is basically an arithmetical average of the three central tendency measures (mean, median, and mode). It smooths the typical outcome eliminating any possible noise caused by outliers.
min/max
Together with the close price, this chart displays the minimum and maximum forecast prices collected among individual participants. The result is a price corridor, usually enveloping the weekly close price from above and below, and serves as a measure of volatility.
WHAT IS THE FORECAST POLL AND WHY TO USE IT?
The Forecast Poll is a sentiment tool that highlights near- and medium-term price expectations from leading market experts. It is a sentiment indicator which delivers actionable price levels, not merely “mood” or “positioning” indications. Traders can check if there is unanimity among the surveyed experts - if there is excessive speculator sentiment driving a market - or if there are divergences among them. When sentiment is not at extremes, traders get actionable price targets to trade upon. When there is deviation between actual market rate and value reflected in forecasted rate, there is usually an opportunity to enter the market.
You can also use the Outlook Poll for Contrarian thinking strategies. Gonçalo Moreira, Research expert at Fxstreet, explains: “People involuntarily follow the impulses of the crowd. Sentiment indicators, in turn, lead to “contrarian” thinking. The Di helps traders detect sentiment extremes and thereby limit their eventual toxic herd behavior.” Read more on Contrarian Approaches with Sentiment indicators
HOW TO READ THE GRAPHS?
Besides the table with all participants’ individual predict, a graphic representation aggregates and visualizes the data: the Bullish/Bearish/Sideways line shows the percentage of our contributors on each of these outlook biases.
This graph is available for each time horizon (1 week, 1 month, 1 quarter). We also indicate the average price predict as well as the average bias.
2017 FORECAST FOR EUR/USD
In our EUR/USD Forecast Poll 2017, our dedicated contributors expect the bearish trend to slow down during the year. By the end of the year 2017, the average outlook for the pair is 1,0200. Read more details about the poll.
In the last 12 months, from Feb 2016 to Feb 2017, the maximum level for the EUR/USD (Euro US Dollar) was 1.1534 (on 05/02/16), and the minimum, 1.0388 (on 12/20/16)
MOST INFLUENTIAL POLITICAL EVENTS IN 2017 FOR EUR/USD
In terms of politics, the focus in 2017 will be the moves and decisions taken by the new president of the United States, Donald Trump, and his administration. Tax cuts or government spendings strategy will influence Fed’s interest rates decision. Geopolitics and international relations of the US will also play a role in the moves of the EUR/USD this year, including decisions related to trade deals and multinational alliances.
BONDS THAT INFLUENCE THE MOST EUR/USD
Bonds whose moves can impact the EUR/USD: T-BOND 30y; T-NOTE 10y. This group also includes the following currency pairs: GBP/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD, EUR/GBP and USD/CHF