HIGHLIGHTS FOR 2017
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US Dollar (DXY)
Our bias at the start of 2017 was bullish with the overarching idea that the US Dollar will strengthen in accordance with the rate hike from the FED. We were proven wrong on this analysis, and did not move quickly enough to switch our bias and ride on the down move.
The US Dollar dropped a total of 12.34% in 2017 between the start of the year to early September. There were various opportunities to ride this downtrend, but we missed the opportunity to ride and follow through this move.
Analysis of US Dollar on 31st December 2016
Chart of US Dollar on 21st December 2017
We forecasted and was expecting this drop since the start of 2017. The fall didn’t come until May 2017, but we have been regularly reminding our community of traders of the huge drop on this pair throughout the year.
As the year comes to an end, USD/CAD experienced a 12.56% drop from it’s high to the recent low.
Analysis of USD/CAD on 31st December 2016
Chart of USD/CAD on 21st December 2017
EUR/AUD and EUR/NZD
Lastly we have the EUR/AUD and EUR/NZD trades. From the low to the high of 2017, both EUR/AUD and EUR/NZD rallied by 15.74% and 20.26% respectively. Very similar to the USD/CAD trade, we forecasted and was expecting this rally since the start of the year.
Analysis of EUR/AUD on 31st December 2016
Chart of EUR/AUD on 21st December 2017
Analysis of EUR/NZD on 31st December 2016
Chart of EUR/NZD on 21st December 2017
FOCUS FOR 2018
As 2017 comes to a complete cycle, it’s time for us to lookout for some huge profit potential opportunities to trade for 2018.
Going into 2018, we are expecting to see a major fall in GBP/USD, potentially targeting 1.1890 area. A break below the inner trend line will give us the confirmation of the start of the downtrend.
Taking into consideration the macro and fundamental perspective of the US economy and the Fed, we are expecting the US Dollar to gain strength going into 2018. Focusing on USD/CHF, 0.9600 – 0.9670 present a very good opportunity to start accumulating Dollar, potentially targeting 1.0290 area.
For this pair, we are holding a bullish bias, expecting price to hit the 94.60 area. Price has broken the trend line before the New Year. I will be monitoring this pair starting next week to see if the market present any good opportunity for accumulation.