Jan 12
26
Hello everyone.
Welcome to Pro Pipper Trading’s new format for Forex analysis. After talking with many followers and subscribers, we felt this was a positive change – one which most forex traders will find useful.
As many of your know, every week we provide a technical forecast for the US majors on FX Street. This forecast is compared with other top FX Street analysts and it’s a way some traders get a sentiment of the currency market. The time frames for the forecasts are daily, monthly and quarterly and this currency outlook is published on FX Street every Friday.
For a while now, traders have been asking us of detailed analysis and commentary to go along with our forecasts so we’re going to start doing that each week. This detailed commentary will only be available on our website. For those who are interested in other currency pairs, we will still post random updates on sites we contribute to.
As mentioned, the forecast poll has a 1 week, 1 month and 1 quarter projection, so we’ll abbreviate as follows:
W1 = 1 Weekly outlook
M1 = 1 Month outlook
Q1 = 1 Quarter outlook
EUR/USD
W1 – 1.3100
M1 – 1.3500
Q1 – 1.3800
General Shorter Term Trend – Up
For a while we were predicting the currency would bounce up near the bottom trend line and now that it looks like the bounce may be complete, look for the pair to potentially head up in the short term. There are several trend lines which could act as strong resistance so be sure to use caution when approaching these level and use intraday analysis.
On a longer term, we may potentially see the currenty pair hit 1.4000. Our next longer term price point is sitting right at the 1.3500 mark.
GBP/USD
W1 – 1.5500
M1 – 1.5200
Q1 – 1.5700
General Shorter Term Trend – Up
The GBP/USD has been channeling for quite some time and although the daily chart may look like a very loose Contracting Triangle (CT), be cautious. The pair appears ready to start a big pontential sell-off. It does seem we have potential shorter term movement coming up so watch for the pair to drop next week to test the 1.5500 level. If we do see a continuation down, look for the pair to test the 1.5200 – 1.5300 price levels.
This is where our analysis gets a little distorted. Our analysis shows there may be one more momement back up in the upcoming weeks. If we do see this upward movement, look for the pair to potentially hit the 1.5800-1.6000 area. Once there, start performing some intraday analysis to see where we may see a potential reversal point. Again, it’s been in a pretty tight channel over the past couple of years so it’s getting ready to break out strongly.
In the shorter term, it does look potentially bearish so if you’re in a sell trade, protect and lock in your profits as the currency pair moves in your favor. Just be ready for the potential retracement to come up.
USD/JPY
W1 – 76.00
M1 – 80.00
Q1 – 84.00
General Shorter Term Trend – Mixed
The USD/JPY daily chart has still not found its footing for the long term movement down. We have seen support around the 76.00 level so this level may hold while the pair is able to retrace back up. We may see potential short term downward action but watch for the pair to potentially turn back to the upside. When it does, look for a shorter term price point of 82.00 and above.
USD/CHF
W1 – .9100
M1 – .9500
Q1 – .9900
General Shorter Term Trend – Down
The USD/CHF saw a bottom in August 2011 and we can see a nice 3 wave retracement up. The question now becomes – is this a 3 wave retracement or the start of a 5 wave motive movement?
It’s still a bit early to call, but in the shorter term, look for the pair to potentially dip down a little (to the .9100 level) and then continue up again. It does seem like this last wave’s movement is sluggish and still has more room for upward movement. The next movement up could test the parity level (1.0000).
As always, good luck with trading and be sure to use your money management.
If you have any questions or comments about the new format, please leave them in the comment section or contact us directly.
