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Forex Forecast for 26-30 October 2015

Published 25/10/2015, 20:13
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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The previous forecast was fulfilled:


- regarding EUR/USD, 73% of the analysts insisted that the pair would first fall to support at 1.1300 and then down to 1.1120. Until mid-Thursday, the pair barraged against the level of 1.1300 but on the news about the ECB's interest rate, it crashed to the mentioned level of 1.1120. One would think that EUR/USD might stop there, however, thanks to the National Bank of China, the pair broke through this support level on Friday and reached the landmark of 1.1000 where it had been last in the middle of August;
- the GBP/USD was almost unanimously predicted to be in a sideways trend within a 1.5420-1.5500 range for most of the week, which happened. Further forecasts differed. In this case, graphical analysis was 100% correct - the pair was supposed to go down to support at 1.5350 where it finished the week in fact;
- as for the USD/JPY pair, 64% of the experts and almost all tools of technical analysis predicted that the break through the bottom of the triangle, which the pair had been drawing since late August, would be short-lived. So it happened - by Friday the pair reached the said 120.80 resistance and then went to the next peak at 121.45, thus transforming the triangle into a horizontal channel;
- both experts and technical analysis unanimously predicted upward movement for USD/CHF, differing only on how fast it would transpire. In line with one of the versions, the pair started to go up right away on Monday, broke through the top boundary of the channel and moved to resistance at 0.9600. One third of the experts were convinced that it would not stop there but rise by 100 points more. That turned out correct - USD/CHF gained 100 points and then another 100, eventually reaching 0.9800.

Forecast for the coming week:

  • Summarizing the views of several dozen analysts from leading banks and broker companies as well as forecasts based on various methods of technical and graphical analysis, the following can be put forward:
  • the indicators clearly point downwards for EUR/USD. However, 50% of the analysts and graphical analysis suggest that the pair will be moving in a sideways corridor of 1.1000-1.1100. They are backed by another 33% of the analysts, differing only in that they drop the support line by 50 points to 1.0950. Just 17% of the analysts insist the pair would return to the 1.1300 resistance;
  • around 80% of the indicators vote for a fall of GPB/USD. Half of the experts agree but say that the fall won't be major - the main support will be at 1.5200. The other 50% of the experts and graphical analysis on H4 believe that the pair has reached the bottom and will be moving in a 1.5300-1.5470 sideways channel;
  • the indicators point upward for USD/JPY. Surprisingly, 100% of the experts concur and reckon that the pair won't be able to fall below support at 120.50 but will bounce off it towars 122.00;
  • the outlook for USD/CHF is up. The experts, most indicators and graphical analysis on H1, H4 and D1 agree with it. Support is around 0.9740-0.9765, the Pivot Point is at 0.9800, and the next target is 0.9900. Only 14% of indicators on N1 and just 1 indicator on D1 remind that the pair may still crash by a further 100 points to support at 0.9665.

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