This week the most important news is far in the last business day of the week. The Unemployment report and NonFarm Payrolls are on focus. It is expecting worse results than a prior week. Nevertheless the dollar gains in the last 4 days by last week and stop the gains today. The current support level is at 1.0595 while we found resistance at 1.0730. World-Signals.com trading strategy this week is to open long EURUSD position with target above 1.0730 close to 1.08 level when is possible turn down at current levels.
It is started a very dynamic week for the forex market according to World-Signals.com. Undoubtedly the main focus this week is on Wednesday Fed interest rates decision. It is widely expecting Fed to hike the interest rates with 25 bps to 1.00% but the signals after that may push the market into new trend. Currently the EURUSD consolidate at levels of 1.06. Almost all economic news from United States in the last couple of months is positive but that do not allow the dollar to gain. On the other side of the Atlantic in the second economic in Euro Zone France is close to very important elections that may change anything. The France elections are on April 23rd and probably second tour one week later. For EURUSD the first support is formed at 1.0495 while we see resistance at 1.0715 and 1.0830. World-Signals.com trading strategy this week is trading within the support/resistance levels as the effect of Fed interest rates hike is already generated by the market.
The Euro takes advantage against the Euro for two days only in serial of almost 7 losing days. Better than expected data for United States support the gains of the dollar. Meanwhile in the Euro Zone day after day the fears about the economic rises. One of the key supports for the dollar comes by the Fed Chairman Janet Yellen who hints that on the next Fed meeting in March is possible hike of the Interest rates. The major support level is formed at 1.0580 followed by 1.0520. The resistance is formed at levels of 1.0670. On Monday is a holiday in United States for the President's Day so we expect flat market as overall while during the week the dollar may gain below 1.0520. World-Signals.com trading strategy is to keep or open short positions at levels above 1.0640 and target 1.0520 and below.
The forex market in the next couple of days expects the first steps of the new president of United States. As overall the steps of Donald Trump is to restart the U.S. economy and cut the unemployment. If he executes his words in action the dollar probably very fast will go to parity with the euro. The fundamental news may not influence so much this week over the forex trading. World-Signals.com trading idea this week after 4 losing weeks for the dollar is stop of the process and slowly recovery of the dollar. Although that the trend remains bullish at the mid of the week we expect that end. World-Signals.com recommend using the moment to close any long positions and change into short.
What will happen in 2017 and our forecasts in this article. In the forex market the forecasts for EUR/USD is to reach levels of 0.90. The Euro weakness continue in 2017 due too serious budget problems in the Euro Zone also interest rates divergence. The Pound to cut the half of the losses against the dollar in 2017 and became more attractive currency. Crude Oil slowly will recover to $65 for a barrel (New York) as the trading range is $42 - $65. The war in Syria will end in 2017 but in Iraq the war will continue together with new escalating of the conflict in Libya. A bad year for Europe we expecting where there are two scenarios in 2017-2018. The most negative expectations are the start of civil war in Western Europe. The other way is Western Europe to start cooperating with the Russian Federation and end of the sanctions. After Brexit other countries will try to leave European Union as higher chance to see for France and Italy.
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Crude Oil price recovery may end in the next couple of days. World-Signals.com expects to see technical correction down below $48.00. The Crude Oil price jumped from $45 in New York to $51 after OPEC members agreed to cut by 1.2 million barrels per day. But there is strong resistance at levels above $52. World-Signals.com trading strategy is to sell Crude oil at the levels at $51.00-$51.35 with target $48.00.
The United States president elections are the main moving factor for this month. The election of Donald Trump and the first talks about his program is the key signal for the investors. In the first three hours the traders sell dollars while later the dollar recovery the losses and even gain about 150 pips. In the coming week World-Signals.com expect to see exit of the short positions as the dollar may lose the recent gains but not so much. The key support level for EURUSD is at 1.0830 as the breaks below the level we can see 1.0740. The first resistance is at 1.0935 followed by 1.1000. World-Signals.com trading strategy is long positions in the first half of the week when we can see 1.0935 or 1.1000 as then is possible reverse down to the levels of 1.08.