The US dollar ended the week on the back foot despite the upcoming rate hike. Apart from the Fed decision, we have rate decisions also in the UK and Japan, US consumer confidence and housing data, and lots more. US Nonfarm payrolls showed the US labor market created 235,000 new jobs in February, beating forecasts of 196,000 gain. In addition, the unemployment rate declined to 4.7% in the first full month of President Donald Trump’s term. Average hourly earnings rose sharply by a 2.8% on an annualized basis. This should be good enough for the Fed to hike. In the eurozone, the ECB has expressed a bit more optimism or at least less urgency, and this gave a boost to the euro.
EUR
ECB President Draghi Speaks
- EURUSD
The pair is on its way to reach the level of 1.0770 during the week. It is our strong resistance level for the week so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.0650 during the week. On the other hand, breaching the level of 1.0770 opens the door for further upward movement that the pair may reach the level of 1.0850.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.0770 ▪-1.0800 ▪ 1.0850 |
▪ 1.0650 ▪-1.0600 ▪ 1.0500 |
We remain bearish as long as the pair is traded below the level of 1.0770 |
- GBPUSD
Will the pair continue going up? As could be seen on the chart that the pair is traded above a strong support area around 1.2080 – 1.2040 so as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.2400 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2400 ▪-1.2500 ▪ 1.2600 |
▪ 1.2080 ▪ 1.2040 ▪ 1.2000 |
We remain bearish as long as the pair is traded below the level of 1.2040 |
- GOLD
The pair may continue going up to find its first strong resistance level that is located around 1216. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1290 during the week. On the other hand, breaching the level of 1216 can open the door for further upward movement that the pair may reach the level of 1230 followed by 1240 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1260 ▪ 1240 ▪ 1220 ▪ 1216 |
▪ 1190 ▪ 1180 ▪ — |
We remain bearish as long as the pair is traded below the level of 1216 |
- AUDUSD
The pair may continue going up to reach its first resistance level around 0.7600 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 0.7500 during the week. On the other hand, breaching the level of 0.7600 can open the door for further upward movement that the pair may reach the level of 0.7700 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7600 ▪ 0.7700 ▪ 0.7550 |
▪ 0.7410 ▪ 0.7400 ▪ — |
We remain bullish as long as the pair is traded above the level of 0.7600 |
- GBPJPY
The pair is traded right above a very strong support level around 138.70 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 142 during the week. On the other hand, breaching the level of 138.70 opens the door for further downward movement that the pair may reach the level of 137 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 142 ▪ 142.70 ▪ — |
▪ 138 ▪ 138 ▪ 137 |
We remain bearish as long as the pair is traded below the level of 138.70 |
