Weekly Forex Forecasts
Start the week of August 22, 2021 with our Forex forecast focusing on the major currency pairs here.
GBP / JPY
The British pound was hammered over the week, not only against the Japanese yen but against almost everything else. We have certainly seen a huge shift in the “no-risk” feeling, and I think that continues to happen in the Forex world. However, I think the market will continue to view rallies as potential selling opportunities until something drastically changes. If we fall under the hammer of five weeks ago, the bottom is going to fall out of this market, and we’re going much lower.
EUR / USD
The euro fell significantly during the week, dropping below the 1.17 level. At this point, level 1.16 will more than likely be targeted, and at this point we might get a short term rally in which we can sell. The signs of exhaustion will certainly fade, unless we can somehow break out level 1.1850. Going above this level would open the possibility of an uptrend. Until then, I turned to all short-course rallies.
AUD / USD
The Australian dollar collapsed quite significantly over the week, falling more than 3%. With this type of candlestick, it can either mean surrender or the start of something bigger. I think it’s the latter because we’re seeing a lot of negativity about risky assets in general. If we come together from here I think it’s only a matter of time before we see signs of exhaustion that we can sell into. I have no interest in buying the Aussie until we pass the candlestick high for the week.
CAD / JPY
The Canadian dollar slumped significantly during the week, with oil losing more than 8%. Because of this, the CAD / JPY pair sold quite drastically, dropping below the ¥ 85 level at one point. With the type of candlestick that we have formed, I think the rallies will be sold, and then maybe we could also sell a breakout below the candlestick. If we break down, I think it’s very possible that this market will turn to the ¥ 81 level in the longer term.