The US dollar was on the back foot due to the Fed’s “dovish hike”. Will the downfall continue? UK inflation data, Yellen’s speech and Durable goods orders are the major events on forex calendar this week.
- EURUSD
Update: The pair may reach the level of 1.0770 and 1.0800 during the week, then if it shows some negative factors it may go down to reach the level of 1.0750 followed by 1.0650. The pair is on its way to reach the level of 1.0800 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 1.0800 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 1.0800 |
- GBPUSD
A strong resistance level has been broken (1.2400). It turned into a support key level. So we believe that this breakout can open the door for the pair for further upward movements during the week that it can reach the level of 1.2500 followed by 1.2600.
Resistance levels: | Support levels: | Recommended: |
▪ 1.2500 ▪-1.2600 ▪ — |
▪ 1.2400 ▪ 1.2040 ▪ 1.2000 |
We remain bullish as long as the pair is traded above the level of 1.2400 |
- GOLD
The pair may continue to rise in the direction of our weekly key level that can be found at 1245 that also meets the downtrend line (that acts as a resistance level). The pair may rebound around that level but first of all we will need to find some negative factors then we can go short targeting the level of 1220. This scenario is conditioned by the continuation of trading below the downtrend line.
Resistance levels: | Support levels: | Recommended: |
▪ 1260 ▪ 1250 ▪ — |
▪ 1220 ▪ 1290 ▪ 1180 |
We remain bullish as long as the pair is traded below the downtrend line. |
- AUDUSD
Will the level of 0.7830 remain solid? This is our key resistance level for the week. The pair may rise during the week to reach our key level, then a pullback is expected if the pair shows some negative factors that it may reach the level of 0.7700 during the day.
Resistance levels: | Support levels: | Recommended: |
▪ 0.7720 ▪0.7800 ▪– |
▪ 0.7410 ▪ 0.7400 ▪ 0.7600 |
We remain bearish as long as the pair is traded below the level of 0.7830 |
- GBPJPY
The pair is traded in a very narrow range between 142.50 (the high) to 139 (the low). No trading for now till the pair reaches one of those levels (that is where we can enter the market) Otherwise, no trading is allowed on daily biases.
Resistance levels: | Support levels: | Recommended: |
▪ 142 ▪ 142.70 ▪ — |
▪ 138.70 ▪ 138 ▪ 137 |
Waiting for the pair to reach one of the levels mentioned in the report |