US housing data: Wednesday, 12:30. Building permits stood at an annual pace of 1.17 million in May, while housing starts dropped to 1.09 million. The figures often surprise in different directions, offsetting each other. When they go in the same direction, they have a significant impact. Building permits are expected to rise to 1.20 million and housing starts to 1.16 million.
Crude Oil inventories: Wednesday 14:30. The weekly gauge of inventories dropped sharply in the latest read, but supply is also abundant. The indicator moves the Canadian dollar but also other markets. There is an inverse correlation between the dollar and oil prices.
USD
US housing data
Crude Oil inventories
- EURUSD
Update: the pair is still traded below the resistance level of 1.1540. As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around the level of 1.1540 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1450 followed by 1.1400. On the other hand, breaching the level of 1.1540 would open the door for further upward movements during the week that the pair may reach the level of 1.1650.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.1610 ▪ 1.1540 ▪ |
▪ 1.1300 ▪-1.1250 ▪ 1.1200 |
We remain bearish as long as the pair is traded below the level of 1.1540 |
- GBPUSD
Update: still traded below the resistance level of 1.3125. As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around 1.3125 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.3000 followed by 1.2900 during the week. On the other hand, breaching the level of 1.3125 will open the door for further upward movement during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3125 ▪ 1.3200 ▪ 1.3300 |
▪ 1.2900 ▪ 1.2800 ▪ — |
We remain bearish as long as the pair is traded below the level of 1.3125 |
- GOLD
Update: still traded below the level of 1240. We remain bearish. The pair is traded right below a strong resistance level that could be found around the level of 1240. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1220 during the week. On the other hand, breaching the level of 1240 can open the door for further upward movements during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1270 ▪ 1265 ▪ 1240 |
▪ 1220 ▪ 1210 ▪ 1200 |
We remain bearish as long as the pair is traded below the level of 1240 |
- AUDUSD
Update: On its way to the level of 0.8000. The pair managed to break through the level of 0.7820 (which is a strong resistance level) so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 0.8000 during the week. On the other hand, breaching the level of 0.7820 would open the door for the pair to reach the level of 0.7700.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7820 ▪ 0.8000 ▪ |
▪ 0.7700 ▪ 0.7600 ▪ 0.7500 |
We remain bullish as long as the pair is traded above the level of 0.7820. |
- GBPJPY
Update: the pair is still traded right below the level of 148 so we remain bearish. As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around the level of 148. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 147 followed by 146 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 148 ▪ 147.95 ▪ |
▪ 145 ▪ 144 ▪ 143 |
We remain bearish as long as the pair is traded below the level of 148. |
