UK GDP (final): So far, the UK economy withstood the EU Referendum quite well, enjoying solid growth in Q3 and Q4. According to the second read, the economy grew by 0.7% q/q. This number will probably be confirmed in the last read.
Canadian GDP: Canadian GDP increased 0.3% in December in line with market forecast. November’s reading was upwardly revised to 0.5% which was originally reported as 0.4% growth. GDP rose 0.6% in the fourth quarter of 2016 following a 0.9% gain in the previous three months. Domestic consumption gained 0.6% for the quarter after a rise of 0.7% in the prior three months. Exports improved, while imports fell sharply. Business investment declined 2.1% following a 0.5% drop in the third quarter and capital spending has declined for nine successive quarters.
GBP
UK GDP
CAD
Canadian GDP
- EURUSD
The pair may continue going down to reach the level of 1.0625 in an attempt to form an inverted head and shoulders pattern that its right shoulder trough could be found around the level of 1.0625 so a pullback is expected around this level that it may reach the level of 1.0700 during the day.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.0800 ▪-1.0900 ▪ 1.0950 |
▪ 1.0650 ▪-1.0600 ▪ 1.0500 |
The pair may continue going down to reach the level of 1.0625 during the day! |
- GBPUSD
The pair managed successfully to rebound around the level of 1.2400 then if formed a head and shoulders pattern (as could be seen on the chart above) so it may continue going up to reach the level of 1.2600 during the day.
| 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
Update: The pair has successfully reached the level of 1240 and it is a strong support level for now that can help the Gold gain value against the American dollar that it may reach the level of 1245 during the day.. As could be seen on the chart above that the Gold managed to break through the level of $1250 and it reached the level of 1260 which is a very strong resistance level. Having the pair traded below the level of 1260 does suggest more downward movement during the week that it may reach the level of 1250 (again) as a first targeting that could be followed by 1240.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1260 ▪ 1250 ▪ — |
▪ 1220 ▪ 1190 ▪ 1180 |
We remain bullish as long as the pair is traded below the level of 1240. |
- AUDUSD
Update: We remain bullish as long as the pair is traded above the level that can be found around 0.7600. The pair managed to reach the level of 0.7600 (as we expected last week) which is, by the way, a very strong support area. We also find a good catch around this level that we may go long targeting the level of 0.7700 during the week. Otherwise, if the level of 0.7600 is broken by a daily close (below it) we go short targeting the level of 0.7500.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7720 ▪ 0.7800 ▪– |
▪ 0.7410 ▪ 0.7400 ▪ 0.7600 |
We remain bullish as long as the pair is traded below the level of 0.7600 |
- GBPJPY
A very good resistance area that could be found between the level of 140.20 – 140.50. If the pair managed to reach this area, we may go short targeting the level of 139.50 during the day. Otherwise, we are not to enter the market for today.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 142 ▪ 142.70 ▪ — |
▪ 138.70 ▪ 138 ▪ 137 |
Waiting for the pair to reach the level of 140.20 |
