Australian rate decision: Tuesday, 3:30. The Reserve Bank kept the official cash rate unchanged at 1.5% at their February meeting. The reading was in line with market forecast. Some economists believe the RBA’s next move will be to raise rates while others say there is still room for more rate cuts due to relatively low inflation. The RBA monitors the recent increase in lending to property investors and further data about the economy’s performance to determine its next move.
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- 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
Yesterday’s scenario is still active. 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
Yesterday’s candle is very bearish, but we still have the pair traded above the level of 1220. So yesterday’s scenario is still active. 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 above the level of 1220. |
- AUDUSD
Update: The pair may continue going up to reach the level of 0.7650 during the day. Yesterday’s scenario is still active. 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 above the level of 0.7500 |
- GBPJPY
Yesterday’s scenario is still active. 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 |
