UK inflation report: After the BOE turned hawkish, market expectations for a rate hike in May have risen quite substantially. However, a lot depends on the inflation keeping up. Headline CPI stood at 3% y/y in December and now we get the first release for 2018. A slide to 2.9% is forecast. Core CPI was 2.5% and it is expected to tick up to 2.6% now.
USD
UK inflation report
- EURUSD
As could be seen on the daily chart that the pair is traded above a strong support level that is the 50 MA (shown on chart in red). Therefore, we are bullish as long as the pair is traded above it that it may reach the level of 1.2500 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2525 ▪ — ▪ — |
▪ 1.21 ▪ 1.1600 ▪ 1.1550 |
We are bullish as long as the pair is traded above the 50 MA. |
- GBPUSD
The pair is traded above a strong support level that could be found at 50 MA. Therefore, we are bullish as long as the pair is traded above it. Our target for the week is 1.40.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.4100 ▪ 1.3970 ▪ — |
▪ 1.3800 ▪ 1.3700 ▪ 1.3600 |
We remain bullish as long as the pair is traded above the 50 MA. |
- GOLD
As could be seen on the daily chart that the pair is traded above a strong support level that is 1300. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1350 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ — ▪ — |
▪ 1310 ▪ 1300 ▪ 1290 |
We remain bullish as long as the pair is traded above the level of 1300. |
- AUDUSD
As could be seen on the daily chart that the pair is testing the 50 MA (shown on chart in red) so in case it managed to retest it and hold below it then the way would be open for the pair to reach the level of 0.7760 during the week. On the other hand, breaching the level of 0.7900 can open the door for further upward movement during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.8000 ▪ 0.7900 ▪ — |
▪ 0.7737 ▪ 0.7600 ▪ 0.7500 |
We are bearish as long as the pair is traded below the level of 0.7900. |
- GBPJPY
As we mentioned last week that the pair would reach the downside of the ascending channel and it successfully reached it. So, it acts as a strong support level for now that can help the GBP to gain value against the JPY during the week. On the other hand, breaching the downside of the ascending channel, can open the door for further downward movement during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 156 ▪ 155 |
▪ 148 ▪ 147 |
We remain bullish as long as the pair is traded above the downside of the pattern. |
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