Weekly Forex Forecasts
Start the week of May 31, 2021 with our Forex forecasts focused on major currency pairs here.
GBP / USD
The British pound initially fell during the week, but turned to show signs of resilience. What the weekly chart doesn’t show you is how resilient it was on Friday to find itself near the 1.42 grip. At this point, it looks like we can break down pretty quickly, and a move above the 1.4233 level would make me look for a bigger move towards the 1.45 grip. At this point, it looks like the pullbacks in the British Pound continue to buy opportunities depending on value and whether the US dollar generally falls.
GBP / JPY
The British pound also had a big week against the Japanese yen, but unlike the US dollar, it broke. In this case, we’re above the ¥ 155 level, and I like buying dips here. I think we’ll look towards the ¥ 157.50 level and then eventually the ¥ 160 level. Even if we fall below the ¥ 155 level, there is so much support below the ¥ 153.50 level that I would only consider this a “good deal” that I would be willing to take advantage of. Keep in mind that this pair is very sensitive to risk appetite.
EUR / USD
The euro has fluctuated over the week, but the best part is that we continue to struggle above the 1.22 handle. In doing so, it tells me that there is a massive amount of resistance above at the 1.23 level, as you can imagine the “spread” that is above this candlestick. At this point, I think we’ll continue to see declining buyers, but I certainly think the drop is coming. Check out this dive to kick off the week, but by the time we get the jobs report on Friday, I expect the market to probably show some sort of recovery.
USD / CAD
I cannot stress enough how important the 1.20 level is for this pair. If the US dollar cannot rebound from this massive downward movement, it is very likely that it will give up a bit from here, possibly reaching as low as 1.10. This is a major inflection point on longer term charts so pay close attention to this area as it could lead to massive trade. Regarding the purchase, I would not be interested in doing so.