Generalising the opinions of 35 analysts from world leading banks and broker companies collected in a table as well as forecasts based on different methods of technical and graphical analysis, the following can be concluded:
- despite most indicators showing a continuation of the fall of the EUR/USD and GBP/USD pairs, analysts are inclined towards a more probable sideways trend with a rebound upwards in the beginning of the week. Certain key indicators also point towards overselling and strong volatility;
- regarding the USD/JPY pair, a rare unanimity is observed – upwards and only upwards to the height of 121.00 and even further;
- but the USD/CHF pair, with high probability, will try to secure itself above the key mark of 1.0000, while strong fluctuations are not expected.
***
It is said that the New Year is a time of surprises. And, as it turns out, it’s not only Santa Claus who brings them, but also… Forex. As for last week’s forecast:
- at the start of the week the EUR/USD pair tried to follow our forecast and, having risen slightly, it began a smooth descent. And then at midnight between January 1st and 2nd, the pair jerked like a jumper off a trampoline, demonstrating a spectacular price gap of 50 points, and then continued its rapid decline, braking only on a mark with many zeroes – 1.2000;
- even more impressive was the fall of the British Pound – the GBP/USD pair tumbled downwards by a whole 300 points;
- as for the USD/JPY pair, despite the presence of a gap, it fulfilled our forecast practically by 100% – first it decreased to the level of 118.850, and then went upwards, reaching the height of 120.00 as expected;
- and, finally, the last pair – USD/CHF. It was clear that at some point it will reach the symbolic mark of 1.0000, but few expected it to happen so soon. Indeed, the New Year is a time of surprises!
Roman Butko, NordFX & Sergey Ershov
