In today’s Tip TV Forex Forecast, Steven Woodcock, Senior Analyst at Plutus FX, offers the outlook for EUR/USD, USD/CAD, AUD/USD and USD/JPY.
Good time to buy the greenback
Woodcock remains a long term dollar bull and notes that the greenback is currently seeing a short-term pullback and it’s a good time to buy the USD.
USD/CAD remains a good trade
USD/CAD still remains an oil trade, notes Woodcock. He comments how the CAD trade has shifted from being guided by interest rates to the movements in commodity markets. Woodcock maintains a bullish target on the cross at 1.45 – 1.55 area, and further explains why the pair remains a good trade.
AUD/USD: Upside potential within range
The AUD has been moving much like the CAD, reactive to rates at first and now depending on the commodity space, says Woodcock. On AUD/USD, he believes that the easing China situation might pour some relief in the commodity markets which will benefit the cross a little, but the Aussie will remain a range-trade.
EUR/USD sees upside potential into the US rate decision
Woodcock mentions that the EUR/USD pair is trading firm and sees good support at 1.1220 and 1.1140 levels. He believes that the cross sees upside potential heading into the FOMC rate decision next week. For the long-term, he remains a EUR seller.
USD/JPY: lower before higher climb
On the USD/JPY, Woodcock maintains his long-term bullish target at 140 region but warns of downside potential towards the 115.50 area. He suggests adopting a buy on dips approach on the pair.