Former FBI Director James Comey provided a harsh testimony against President Donald Trump but fell short of stating it was an obstruction of justice. While the story will continue weighing on Trump’s growth agenda, an impeachment seems far off at the moment. This allowed the dollar to recover. In the euro-zone, the ECB made some hawkish changes to its statement but lowered inflation forecasts. The end result was a weaker euro. In the UK, Theresa May’s Conservative Party lost its majority in parliament. While she is expected to continue as PM, her hand is weaker in the Brexit negotiations and so is the pound. In the background, oil prices slipped and Chinese data beat expectations for a change.
- EURUSD
As could be seen on the chart above that the pair is traded below a strong resistance level around 1.1300. It also matches a Fibonacci level of 0.386 (From 14.10.2014 to 03.01.2017). So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1200 followed by 1.1100 during the week. On the other hand, if the level of 1.1300 is broken (by at least a daily close) then the way would be open for the pair to reach 1.1400.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.1275 ▪-1.1300 ▪ 1.1350 |
▪ 1.1200 ▪-1.1150 ▪ 1.1100 |
We remain bearish as long as the pair is traded below the level of 1.1272. |
- GBPUSD
The pair is traded below a strong resistance level around 1.3000 so we believe that as long as the pair is traded below it then the way is open for the pair to reach the level of 1.2500.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3000 ▪-1.3100 ▪ — |
▪ 1.2750 ▪ 1.2700 ▪ — |
We remain bearish as long as the pair is traded below the level of 1.3000 |
- GOLD
The pair is traded above the level of 1250 which is a strong support level. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1300 during the week
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1300 ▪ 1290 |
▪ 1250 ▪ 1220 ▪ 1200 |
We remain bullish as long as the pair is traded above the level of 1250 |
- AUDUSD
The pair is traded above a strong support level that could be found around 0.7500 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 0.7600 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ ▪ 0.7600 ▪-0.7700 |
▪ 0.7350 ▪ 0.7300 ▪ 0.7250 |
We remain bullish as long as the pair is traded above the level of 0.7500 |
- GBPJPY
As could be seen on the chart that the pair is traded right above a strong support level which is the uptrend line in red. So we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 144 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 144 ▪ 145 ▪ 146 |
▪ 142 ▪ 141 ▪ 140 |
We remain long as long as the pair is traded above the uptrend line. |
