Start the week of July 5, 2021 with our Forex forecast focusing on the major currency pairs here.
GBP / USD
The pound has fallen for much of the week, but as you can see we have rebounded from the 1.37 grip. That being said, the candlestick of the week was a hammer, but preceded by an inverted hammer, suggesting that the market is still trying to figure out what to do in the future. If we fall below the 1.37 grip, then chances are we can turn to the 1.35 grip. On the other hand, if we can get out of the 1.40 level, then it is likely that we can go looking towards the 1.42 level. From a longer term perspective, the 1.42 level is a very crucial resistance, so it will be very interesting to see how this plays out.
EUR / USD
The euro collapsed over the week to break through the 1.1850 level, but then turned to form a bit of a hammer. That being said, there is a lot of noise in general and downward pressure lately so I think we’re going to end up going back and forth which suggests the market is going to be choppy to say the least. If we fall below the weekly candlestick we are likely looking towards the 1.17 handle, just as a breakout higher could be an attempt to hit the 1.20 handle.
GBP / JPY
The British pound initially fell during the week to hit the 152.50 level. However, we turned around to show signs of strength and form a bit of a hammer. At this point, the market is likely to see a lot of loud behavior and resistance at the ¥ 155 level. It’s because of that that I think the market will continue to be very loud and tense, possibly bouncing between the week’s low and the ¥ 155 level, which has been significant more than once.
USD / CHF
The US dollar rallied slightly over the week to cross the 0.93 level, only to turn around and form a bit of a shooting star. The shooting star is a very negative candlestick, but we still have a massive bullish candlestick from a few weeks ago that is influencing this market. I think we’re going to see a lot of loud trading and volatility, as well as choppy trading.