Weekly Perspective – 31/12/18-4/01/2019

This last trading week saw quite some action for a holiday season. The US government shutdown was the major event that drove markets as traders looked at the stalemate between the government and lawmakers.

The stalemate extends into this trading week as we don’t see any agreement until the new year.

The EUR gained against the dollar benefiting from the uncertainty. The GBP experienced weakness for a greater part of last week, the Brexit cloud still hangs over the pound however we saw it making some gains against the USD, we see this extending into this week.

So here is how we are seeing the markets playing out this week for the respective pairs we are trading


If the standoff continues staying the shutdown we could see the USD continued decline with prices going north of 1.15962 at the R200 resistance level.

A resolution would strengthen the USD and cause prices to test the weekly pivot at 1.13272 and could extend lower to Support levels of S38


The pair is giving us a bullish signal with the underlying force being the US government shutdown and the Brexit takes a bit of a back seat this holiday season. Persistence as with the EUR will see the pound strengthening against the USD with prices likely to test the weekly pivot and head to R38-R100.

A quick resolution of the stand off could see the pound continue with the bearish trend seeing price testing the lows of 1.25017


We are seeing a continued strengthening of the JPY as traders move their monies to the safer instrument. Prices will like go below 109.132.

If the US stand off is sorted within the week we are seeing prices testing the pivot levels with the weekly expected at 112.873


Unlike it’s counterparts the CAD has continued to weaken driven more by the uncertainty and continued fall in oil prices. Our stochastic indicator shows the pair is over bought and we should be expecting a correction this week. Our perspective is that the USDCAD will drop to 1.33820-1.32949 or even lower than that.

However, our charts still show the pair is on it’s bullish trend and likely to go to resistance levels of 1.37511


GBPJPY forecast
Last week the pair was mostly steered by JPY strength. Our stochastic indicator shows price is over sold and we are already seeing a cross. We see the pair jump to R61 to R100.

However a drop to 137.152 is not far from reach as the JPY continues to strengthen amidst the uncertainty of the Pound and other geopolitical factors.

That’s our perspective for the week. Do not miss our daily perspective. The best way is to signup for our newsletter to receive the daily perspective for trade ideas and potential levels to give you more insight to your trading.

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