AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7003; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.6990 and then resume moving upwards to reach 0.7055. Another signal to confirm further ascending movement is the price’s rebounding from the rising channel’s downside border. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 0.6940. In this case, the pair may continue falling towards 0.6870.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.6729; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.6705 and then resume moving upwards to reach 0.6785. Another signal to confirm further ascending movement is the price’s rebounding from the support level. However, the scenario that implies further growth may be canceled if the price breaks the cloud’s downside border and fixes below 0.6655. In this case, the pair may continue falling towards 0.6580.

USDCAD, “US Dollar vs Canadian Dollar”

USDCAD is trading at 1.3049; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.3070 and then resume moving downwards to reach 1.2975. Another signal to confirm further descending movement is the price’s rebounding from the descending channel’s upside border. However, the scenario that implies further decline may be canceled if the price breaks the cloud’s upside border and fixes above 1.3110. In this case, the pair may continue growing towards 1.3190.

GBPUSD reached stability at the end of the year but 2020 is anticipated to be as volatile as 2019.

By the end of 2019, the British Pound managed to pull itself out of a dive but the upcoming year is very unlikely to be easy for the British currency.

As early as at the beginning of January, the British Parliament will face a difficult task to ratify the agreement with the European Union. The Brexit deadline is January 31st, 2020 and if the exiting procedure fails to feature a somewhat proper trade agreement, the national currency will certainly suffer from stress.

The Bank of England is not expected to introduce any significant changes to its monetary policy in 2020, at least in the first six months. Most likely, the British regulator will continue watching the Brexit and talks with the European Union relating to the second phase of the exiting procedure.

The first BoE meeting is scheduled for January 31st, 2020. It’s not clear whether it is a coincidence or not, but looks pretty symbolical.

Moreover, in January the BoE Governor Mark Carney will be replaced by Andrew Bailey, the Chief Executive Officer of the Financial Conduct Authority. Basically, Bailey is not expected to significantly change the monetary policy of the British regulator, at least in winter. The future remains to be seen.

Everything that is going to have a significant influence on the British currency is the Brexit and the Brexit alone. In this light, macroeconomic reports to be published by the United Kingdom go on the back burner. So, if the exiting procedure goes off without a hitch, the Pound will remain standing.

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the ascending channel continues. By now, EURUSD has formed several reversal candlestick patterns, including Hanging Man, close to the channel’s upside border. We may assume that later the price may reverse and get back to 1.1136 to continue the ascending tendency. However, one shouldn’t exclude a possibility that the price may continue growing towards 1.1257.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, the pair is trading near the rising channel’s downside border and has already formed Hammer pattern. The current situation implies that the price may reverse and then resume growing towards 109.60 to continue the ascending tendency. At the same time, the pair may choose another scenario and start a new decline to reach 108.50.