Forex Trading Opportunities for the Week Ahead 7 December 2015

This is my analysis for the week and strenght in some currencies

 NZD:we should it been strong this week  analysis suggests that buying is the correct strategy, but with the RBNZ possibly going to cut rates this week we may see a resumption of the downtrend. If the RBNZ does not cut then we could see further upside.

AUD: midly strong:Despite recent strength, it’s important to note the long-term downtrend is intact. We are sitting at resistance and with iron ore price continuing to fall, the economies exposure to China, and the Fed looking to raise rates, fundamentals are bearish. In addition, a spinning top formed on Friday, which could be a sign of an impending reversal. Shorts present a good risk/reward play from these levels.

GBP is also midly strong: A bullish reversal day on Friday, leave us sitting mid range. The BOE meets this week, and this will provide an indication of when we are likely to get the first rate hike. Friday’s good NFP results mean the Fed will likely raise rates this month.


 EUR: Weak:The ECB underwhelmed markets, and we saw a large short squeeze on Thursday. There is some speculation that this may be the end to easing, but that is assuming economic conditions don’t get worse in the EURO area, which I expect they will. Long-term the divergence between central bank policy and economic conditions should see the EUR much lower, but short-term these event driven conditions can be a bit tricky to trade.


JPY:weak:The pair has transitioned into a sideways quiet Market trend and  remain range bound ahead of this months Fed

CHF: midly weak:fundamentals remain bearish CHF.  but perhaps there are some better opportunities on the crosses.

CAD: Weak:  Data out of Canada was poor on Friday and oil prices are under pressure. But for now prices remain range bound so we would need to wait for confirmation.