UK inflation: Tuesday, 9:30. Headline CPI reached the top of the range in both September and October, at 3% y/y. This is a result of the weaker pound, which in itself is a result of Brexit. The Bank of England forecasts a slide in inflation moving forward, and this will be the first test. The outcome also feeds into the rate decision later in the week. Expectations still remain high at 3%.
US PPI: Tuesday, 13:30. Producer prices advanced quite nicely in October, by 0.4% m/m and also core PPI followed suit with a rise by the same scale. Producer prices eventually feed into consumer prices and this publication serves as a hint towards the CPI on the following day. Another rise of 0.4% in headline PPI is predicted. Core PPI carries expectations for 0.2%.
GBP
UK inflation
USD
US PPI
- EURUSD
The pair managed to reach the uptrend line shown in blue on the chart above. Therefore, we are bullish this week as long as the pair is traded above that. Our expected target for the week is 1.1950. This is conditioned by the continuation of trading above the uptrend line.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2000 ▪ 1.2100 ▪ 1.1960 |
▪ 1.1500 ▪ 1.1300 |
We remain bullish as long as the pair is traded above the uptrend line. |
- GBPUSD
As could be seen on the chart above that the pair is in nowhere to enter the market. So, we will be waiting for it to reach the uptrend line shown in red so we can go long targeting the level of 1.3450.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3700 ▪ 1.3650 ▪ 1.3540 |
▪ 1.2990 ▪ 1.2900 ▪ 1.2800 |
Waiting for the pair to reach the uptrend line. |
- GOLD
Last week, the pair managed to breakthrough the uptrend line shown in red besides the support level of 1260 (resistance now). It may continue going down to reach the level of 1239 and if it is broken, we can go short targeting the level of 1220 followed by 1200.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1305 ▪ 1300 |
▪ 1260 ▪ 1240 |
If the level of 1239 is broken, we can go short. |
- AUDUSD
The pair is still traded below the broken neck-line of the head and shoulders pattern detected a few weeks ago. Therefore, we will remain bearish. Our target for this week is 0.7400.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.8100 ▪ 0.8060 ▪ 0.7940 |
▪ 0.7400 ▪ 0.7500 |
We remain bearish as long as the pair is traded below the nick line of the pattern. |
- GBPJPY
As could be seen on the chart above that the pair is traded below a strong resistance level 152.90. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 150 followed by 149.70 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 152.90 ▪ 152 |
▪ 148 ▪ 147 |
We remain bearish as long as the pair is traded below the level of 152.90. |
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