Japan rate decision: Thursday, early in the morning. The Bank of Japan has been contemplating another rate cut within the negative territory as other central banks have taken steps to ease monetary policy. However, the -0.10% rate has been hurting banks without pushing inflation higher. Governor Haruhiko Kuroda and his colleagues will likely leave interest rates unchanged.
Euro-zone inflation figures: Thursday, 10:00. Weak CPI is set to justify President Mario Draghi’s loose monetary policy on his last day at the job. The headline is set to decelerate from 0.9% to 0.7%, far from the bank’s 2% target. Core CPI is set to remain unchanged at 1%. If inflation further falls, the euro may struggle.
EUR
Euro-zone inflation figures
JPY
Japan rate decision
- EURUSD
Update: We remain the same. The pair has been traded below the downtrend line for a long time which confirms the strength of the downtrend. Therefore, we are bearish as long as the pair is traded below the downtrend line. First target: 1.1000.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.1200 ▪ 1.1180 ▪ 1.1150 |
▪ – ▪ – ▪ 1.1060 |
We are bearish as long as the pair is traded below the downtrend line. |
- GBPUSD
Update: We remain the same. The chart above shows that the pair is traded above a strong support level that is 1.2735. Therefore, we are bullish as long as the pair is traded above it. Our first target is 1.2900 followed by 1.3000. Conditioned by the continuation of trading above the level of 1.2735.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.36 ▪ 1.3310 ▪ 1.30 |
▪ – ▪ – ▪ 1.2735 |
We are bullish as long as the pair is traded above the level of 1.2735. |
- GOLD
Update: The pair broke through the upside, so our first target is 1520. Last week, we had a false breakout to the upside of the downward channel shown on the chart above. Therefore, we are bearish as long as the pair is traded below the upside of the channel. Our first target is: 1475.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1550 ▪ 1515 |
▪ 1478 ▪ 1430 ▪ 1425 |
We are bearish as long as the pair is traded below the upside. |
- AUDUSD
Update: We should wait for the pair to confirm the breakout of the resistance level of 0.6885. The pair is traded below a strong resistance level that is 0.6885. Therefore, we are bearish as long as the pair is traded below it. Our first target is 0.68 followed by 0.67.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7550 ▪ 0.7600 ▪ 0.7000 |
▪ 0.68 ▪ 0.67 ▪ – |
We are bearish as long as the pair is traded below the level of 0.6885 |
- GBPJPY
Update: No changes so we remain the same. The chart above shows the pair is traded above a strong support level that is 138. Therefore, we are bullish as long as the pair is traded above it. Our first target is 141.20.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 142 ▪ 141 ▪ 140 |
▪ 132 ▪ 131 ▪ 130 |
We are bullish as long as the pair is traded above the level of 138 |
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