Exchange Rate Forecasts: Forecasts for Pound Sterling, Euro, Australian Dollar and the US Dollar
We bring you a selection of the top foreign exchange rate forecasts that have landed on our desk over the course of the past 24 hours.
The below currency predictions come courtesy of the favourite names we follow in the world of FX and are intended to help you form a more informed decision on your currency requirements.
(Note: All quotes are taken from the wholesale markets; your bank will affix a spread at their own discretion. However, an independent FX will come in with a tighter spread, thus offering you up to 5% more currency. Learn more.)
The euro pound exchange rate forecast
Today's euro pound exchange rate forecast comes courtesy of Kristian Siggaard-Jensen at the Saxo Trading Floor says the EUR/GBP decline is to accelerate to the downside below 0.8240:
"EURGBP is finding support in the early European trading session around 0.8240 but the upside has so far been capped by 50 percent retracement in the 0.8349-0.8156 wave. Therefore, we are looking for a potential upside exhaustive pattern if spot manages to break through 0.8240."
The pound euro forecast
Turning the EUR/GBP around to GBP/EUR allows analyst Bill McNamara to offer us the following viewpoint:
"The latest price action for the UK currency shows that it has slipped into a period of relative quiet, one consequence of which is that it has eased back from its latest highs relative to the euro (at 1.223 or so). However, the fact that it has managed to hold above its 50-day MA is a positive and although we could yet see a test of the short-term uptrend the outlook remains relatively benign."
Pound dollar forecast
Ipek Ozkardeskay at Swissquote Bank has the following to say on the pound dollar forecast:
"GBP/USD has bounced near the support at 1.6600. A break of the resistance at 1.6742 is needed to confirm the end of the recent correction.
"Another resistance stands at 1.6823. Supports can now be found at 1.6584 (24/02/2014 low) and 1.6426. In the longer term, the technical structure favours a bullish bias as long as the support at 1.6220 (17/12/2013 low) holds.
"The decisive break of the resistance at 1.6668 opens the way for a move towards the major resistance at 1.7043 (05/08/2009 high). However, a sustainable move above that level is unlikely in the next few weeks."
Euro pound forecast
Craig Erlam at Alpari has the following forecast on offer for the euro dollar exchange rate:
"We’ve seen some consolidation in this pair over the last week or so, ever since it failed to make new highs for the year, having come within a couple of pips of the 2 January highs. This level has been tested, and held, a few times recently, which could be viewed as bearish as this is clearly a significant level of resistance. However, I remain bullish as the pair has continued to make higher highs throughout this time.
"This has resulted in an ascending triangle formation which is typically a bullish setup, whether formed in an uptrend or a downtrend. Of course, there are no guarantees and this could still break lower, but I’ll need to see a close below the triangle before I see this as a likely outcome.
"With the top of the triangle coinciding with this year’s highs, any break above could be fairly aggressive, prompting quite a rapid move towards 1.3810, a key level of resistance towards the end of last year, followed by 1.3840, where the descending trend line should provide significant resistance again."
Australian dollar vs US dollar forecast
Analyst Emmanuel Ng at OCBC Bank says the Australian dollar is likely to pause for breath:
"With risk appetite levels looking a bit chirpier and the dollar on the defensive, the AUD-USD may continue to find support on dips towards 0.9000 in the near term while the recent high towards 0.9080 may see the pair pause for breath."