Quantitative Easing

Weekly Forex Forecast – AUDUSD, USD/JPY, EUR/USD, GBP/USD

Start the week of August 1, 2022 with our Forex predictions targeting major currency pairs here.

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AUD/USD

The AUD/USD currency pair first tried to rally last week to break above the 0.70 level, but then fell from that level. The 0.70 level is an important round number that many people have been paying attention to. The 0.70 level has offered some support on several occasions, so a bit of “market memory” is likely coming into play. However, if we were to break above the 0.7050 level, then there is a possibility that we could go for the 0.72 level.

Ultimately, I think we’ll probably continue to view this as a “fade the rally” scenario. The market might go down to the lower level of 0.68.

AUD/USD weekly chart

USD/JPY

The USD/JPY currency pair initially attempted to rally last week, but found the area above the ¥135 level to be a bit too much. Now that we have fallen below, the market has reached the ¥133.50 level. The market is reaching lower levels and a support level around ¥131.50, which I think will allow us to find buyers.

Keep in mind that the Bank of Japan continues to buy government bonds for an unlimited amount. It’s essentially the same as quantitative easing, so it’s worth noting that the longer-term trend should hold.

USD/JPY Weekly Chart

EUR/USD

The EUR/USD currency pair has been moving back and forth over the week, and now it looks like we are trying to determine if we will go up or down as the candlestick is somewhat neutral. That said, the parity level is just below and should offer significant support. On the upside, the 1.04 level should be a massive resistance. Ultimately, it’s a market that I think continues to see a lot of loud behavior more than anything else.

EUR/USD weekly chart

GBP/USD

GBP/USD rallied significantly last week to break above the 1.22 level, before reversing and falling. At the end of the day, the market always seems to want to try to work its way up, but given interest rates in the United States, it’s all about the US dollar and the possibility that the Federal Reserve could pivot. (They won’t.) That being said, the market is trying to price something, so pay attention to the 10-year yield.

GBP/USD weekly chart

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