06 MARCH 2017

Last week US data remained upbeat with better than expected consumer sentiment, manufacturing and employment data, raising the odds for another hike in March. Consumer confidence in February exceeded forecast with 114.8 points showing improvement on all parameters including current conditions as well as expectations. Furthermore, US ISM Manufacturing PMI beat expectations with a 57.7 reading, as manufacturers were more optimistic about future growth under Trump’s new policies. The week continued with strong employment data with a 19,000 decline in the number of weekly Jobless claims projecting the US labor market is nearing full employment. Nothing important for today.

 

  • EURUSD


The pair is on its way to reach the downtrend line shown on the chart. So it may act as a strong resistance level that the pair may find a strong wall that can push the prices downward to reach again the level of 1.0500 during the week. On the other hand, breaching the level the uptrend line opens the door for further upward movement during the week. We will follow the pair’s movement on daily biases.

Resistance levels: Support levels: Recommended:
▪ 1.0680
▪ 1.0700
▪ 1.0800
▪ 1.0500
▪ 1.0400
▪ 1.0375
We remain bearish as long as the pair is traded below the downtrend line.
  • GBPUSD


The pair is traded below a strong resistance level around 1.2400 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.2200 followed by 1.2070 during the day. The pair may also find a strong resistance level around 1.2500 – 1.2600 in case the level of 1.2400 is broken.

Resistance levels: Support levels: Recommended:
▪ 1.2400
▪-1.2500
▪ 1.2600
▪ 1.2200
▪ 1.2100
▪ 1.2070
We remain bearish as long as the pair is traded above the level of 1.2400
  • GOLD


The pair is traded right above a strong support level around 1220 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1230 – 1240 – 1250 – 1260 during the week. On the other hand, breaching the level of 1220 opens the door for further downward movement during the week.

Resistance levels: Support levels: Recommended:
▪ 1260
▪ 1240
▪ 1230
▪ 1220
▪ 1210
▪ 1200
We remain bullish as long as the pair is traded below the level of 1220
  • AUDUSD


The pair has made a strong bearish engulfing pattern (that is very negative) it may continue going down to reach the level of 0.7510 (that is the first strong support level we can find) so there are two scenarios: If the pair respects the level of 0.7510 – 0.7500 then a rebound is expected during the week that it may go up to reach the level of 0.7600 – 0.7700 during the week. On the other hand, breaching the level of 0.7500 opens the door for further downward movement during the week.

Resistance levels: Support levels: Recommended:
▪ 0.7600
▪ 0.7700
▪-0.7800
▪ 0.7500
▪ 0.7400
▪ —
We remain bullish as long as the pair is traded below the level of 0.7500
  • GBPJPY


The pair is traded below a strong resistance level around 140.50 (and the broken side of the symmetrical triangle shown on the chart) so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 139 followed by 138.60 during the week. On the other hand, breaching the level of 140.50 opens the door for the pair to reach the level of 142. Having the pair traded below the broken downside of the symmetrical triangle support our view.

Resistance levels: Support levels: Recommended:
▪ 140.50
▪ 141
▪ —
▪ 139
▪ 138.60
▪ —
We remain bearish as long as the pair is traded below the level of 140.50