Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

USD/PHP Forecast: US Dollar Plunges Against Philippine Peso

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • During my daily analysis of the exotic currency pairs, the market that really stood out to me was the US dollar against the Philippine peso.
  • The US dollar recently shot up to the 59 PHP level but has since plunged as the market got a little overdone.
  • As I look at the chart on Wednesday, we are testing the crucial 50 Day EMA, so I think that you need to pay close attention to what happens next.

USD/PHP Forecast Today - 5/12: USD Falls vs PHP (Chart)

The candlestick for the day is trying to close at the very lows of the range, so this of course is a very ugly look. However, you have to keep in mind that the market has recently rallied rather significantly, and a bit of a pullback does make quite a bit of sense. Longer-term, I still believe that the US dollar is considered to be a “safer bet”, but I also recognize that you need momentum to start to turn this thing around and start buying. I would not get overly exposed to emerging markets at the moment, as the global economy seems to be struggling a bit at various pain points.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Technical Analysis

The technical analysis for this pair is somewhat murky in the short-term, but longer term we have seen the market slam into a major resistance barrier in the form of the 59 level, an area that has been important multiple times and therefore it’s not a huge surprise to see that “market memory” came into the picture to make things a bit difficult. That being said, a pullback to the 50 Day EMA makes a certain amount of sense, and therefore we are going to have to be very cautious with the overall attitude of the market, meaning that we need to see the US dollar bounce a bit.

We do get the jobs number on Friday, and it’s likely that we could see the US dollar start to move as a result. The Philippine economy has been fairly strong until recently, and therefore I think that comes into play as well. As things stand right now, I fully anticipate that this pair drops below the 50 Day EMA to only find buyers above the 200 Day EMA. A little bit of patience probably goes a long way.

Want to trade our daily forex analysis and predictions? We’ve made a list of the best forex demo accounts worth trading with.

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews