In recent articles, we have been looking for GBP/USD, EUR/USD to fall and both pairs, have seen weakness and got low risk entries near the highs using our favorite tool sentiment tool in Forex the COT Net Trades Positions. This weeks report points to more weakness in both pairs.
Read more: Commitment of Traders Report Forex – How to Trade Divergence
The USD is in a big uptrend v the CNH and the recent pullback is a buy in our view. The Chinese economy continues to slow up and the Chinese will let their currency weaken to help boost exports USD/CNH is a good risk to reward long-term buy in our view.
China is the world's biggest commodity consumer and its economy is slowing which is bearish for all China-correlated currencies such as the AUD, NZD, and ZAR.
Read more: Commodity Currencies Outlook – China Correlated Currencies Going Down
The USD has rallied this week can it continue its rally next week? The key event of the week will be the Fed meeting which is expected to trigger volatility in USD pairs. Our view of FOMC and the likely reaction in the markets is summarized below...
Read more: USD Outlook and Forecast – Markets Await the Fed DXY Analysis
After a recent surge higher EUR/USD has fallen back below the 1.1200 level and we now expect a major selloff to the downside as speculators who are heavily long are taken out on stop.
Read more: EUR/USD Analysis and Forecast Major Sell Off Expected
China has been the engine room of the world economy since 2008 but now the economy is slowing and the housing market is in a steep downturn. The slow up in the Chinese economy and housing market could create major risk off in financial markets and firm safe haven currencies...
In terms of the COT Net Traders Positions the report is one of the best ways to detect trend changes in advance. In a report earlier in the week we looked at GBP/USD in terms of a potential reversal to the downside and this weeks COT report indicates there could be more downside to come...
Read more: Commitment of Traders Report Tips to Trade Trend Reversals GBP/USD Analysis
The USD is set to end the week on a high and while many forecasters see the bounce as just a technical correction we think we could see far more strength ahead...
We have seen major us indices in a big bull run as the AI enthusiasm drives prices higher – we now have a bullish extreme and expect a correction some charts below to consider.
The GBP has seen a major fall to the downside and could be set for more weakness – Our view of the fundamental’s sentiment and key technical levels to look out for are noted below.
Read more: GBPUSD Analysis and Forecast – Trading Sentiment Extremes
The USD has seen a big fall on the SEK and NOK, but the move is overdone and we would expect the USD to rally back strongly to the upside...
