Zak Mir, technical analyst at ShareProphets.com, and Alessio Rastani, independent market trader at leadingtrader.com, were joined by Steven Woodcock, senior FX analyst at PlutusFX, to discuss the outlook concerning the FX market.
Are we trading China?
Woodcock noted that Turkey and China are currently in the news, with the Chinese devaluation being unexpected, but plans are still there to trade the Yuan.
Short term friendly on EUR/GBP
After correctly predicting the EURGBP up, Woodcock noted that with the Greece and IMF bailout scenario occurring next week, and expressed his view that there is still more upside to come, and in the short-term he is still quite EURGBP friendly.
USD/CAD still being pushed around by oil
Woodcock commented that the USDCAD is looking for consolidation and a pullback, after reaching the 132 level. He added that it continues to be effected by oil, and also that the USD has been weakened by China’s devaluation in the past days.
Possible bounce in the AUD/USD
With the rate hike put on hold due to China, Woodcock noted the possibility for a bounce in this, however, overall noted a general consolidation across the board in the currency markets.
EUR/USD still going down long term
Woodcock finished by expressing that 1.08 remains a main level, but it isn’t going down there in the near future, being up to 1.0920 on Monday. Nevertheless, he believes that in the long term the EURUSD is going lower.