What can we expect this month?
We have just entered the new year and making a brief summary of the year 2017, we have highlighted the US dollar.
The US dollar suffered the great depreciation since 2003 in the major currencies. If we use the technical analysis in order to analyse few of those majors we can see from the following from the majors: EUR/USD; GBP/USD; USD/JPY
EUR/USD - Daily time frame chart
On the chart below we can see that we have here many confluences which indicate a long bias toward EUR/USD.
Besides moving averages, we can see that the price is forming a chart pattern (inverted head and shoulders).
This pair could be very interesting to trade as soon as the price retests the neckline in order to continue the major movement - bullish.
GBP/USD - Daily time frame chart
On daily time frame chart, we can see that the price has been forming higher highs and higher lows for several months.
Until now, there is no evidences about a possible reversal of this bullish trend.
At this moment, we can see that the price is close to the 1.35$ (for the 3rd time).
This zone is relative important because the price has been here for two time and it couldn’t break above that resistance level.
However, we can expect an appreciation near to 1.38$ once the price breaks above the 1.35 level
USD/JPY - Daily time frame chart
Just like other pairs already analysed, USD/JPY is no exception.
This pair has been suffering a great depreciation over the last few days.
If we move to 4-hour time frame chart, we can see that there is a chart pattern as well (head and shoulders) that is still need a confirmation.
Therefore, and if the price confirms the chart pattern then we can expect a further bearish movement in this pair.
