Weekly Forex Forecast - Sunday, Jan. 20

AUD/USD

The US dollar has gone back and forth during the course of the week, as we continue to see a lot of resistance at the 0.7250 level. If we can break above that level, then I think the Australian dollar can continue to go higher. However, I suspect that in the short term we will probably get a small pullback. I would anticipate somewhere near the 0.71 level and most certainly at the 0.70 level we will find buyers willing to step into this market plays. I think at this point people are betting on the US/China trade situation getting better rather soon, which of course the Australian dollar will be a major beneficiary.

AUDUSD

USD/CHF

The US dollar continues to rally against the Swiss franc during the week, but we are getting a bit extended and I do think that the parity level will continue to offer resistance. With that being the case, I think that we may get short-term follow-through, but I would fully anticipate that the sellers come back into the market and push this pair back towards the 0.9850 level. If we do break above the parity level on a daily close, then we could go to the 1.01 handle after that.

USDCHF

USD/CAD

The US dollar has stabilized a bit against the Canadian dollar near the 1.3250 handle. I think at this point, if we can break the 1.33 level, then the US dollar will continue to gain against the Canadian dollar. Pay attention to oil - it always has its influence, so if oil rises it could put downward pressure on this market.

USDCAD

USD/JPY

The US dollar rallied significantly against the Japanese yen during the week but I think that the ¥110 level is where we are going to see a lot of resistance come back into the marketplace. We have the 61.8% Fibonacci retracement level above offering resistance as well, so I think it’s only a matter time before the sellers come in and push this market down. We may have a little bit more positivity ahead of us, but at that point I would expect the market to turn around and fall of the downtrend.

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