Higher volatility & Uncertainty about the new political scheme at the political structure
On the short-term , market bounced clearly to the downside and break support and settled below the bullish channel’s support at 1.5500 after the strong decline that appeared on last Friday session, that was additional negative motive that supports continuing the bearish trend in the upcoming period, and any break for 1.5400 level will stop the suggested positive overview and push the price to turn its intraday and short term track to the downside. which forms good support base that supports continuing the positive scenario, where its next main target for positive scenario at 1.5700 level again then 1.5800 level initially. taking into consideration that close below 1.5140 will push the price to decline towards 1.5020 then 1.4910 levels on the near basis.
Most of the currencies are going on a stabilizing rate between certain levels to consolidate the recent strong move we have seen on the last 6 months. As we have mentioned before ; the breakout was on the downside which means further drop toward 1.42 levels for the mid-term and that means the continuation for the strong dollar across the markets.
On the long-term view : still a lower levels is expected with stabilizing near 1.30s levels , the major turning point would be the May elections – The dollar effect which mainly would move the rate ; however , the stabilization is expected because of the expectation that BoE would hike rate after the Fed expected move.
The chart analysis provided for mid-term view
Daily Trend: Down
Weekly Trend: Down