Central bankers panel: Wednesday, 13:30. Four governors will participate in a panel at Sintra: the ECB’s Mario Draghi, the BOE’s Mark Carney, the BOJ’s Haruhiko Kuroda and the BOC’s Stephen Poloz all talk at one event. While some of them will have had separate events to talk at, this will be an opportunity to tackle worries about inflation all at once.
US Pending Home Sales: Wednesday, 14:00. While sales of new and existing homes are quite stable, pending home sales are squeezing in the past two months. They dropped by 1.3% in May. A rise of 0.6% is on the cards.
Crude Oil Inventories: Wednesday, 14:30. With oil prices tumbling down to 7-month lows, every inventory release matters. There is also a growing inverse correlation with the US dollar.
USD
US Pending Home Sales
Crude Oil Inventories
- EURUSD
As could be seen on the chart above that the pair is traded below a strong resistance level around 1.1360. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1300 followed by 1.1250 during the week. On the other hand, if the level of 1.1360 is broken (by at least a daily close) then the way would be open for the pair to reach 1.1400.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.1360 ▪-1.1400 ▪ 1.1450 |
▪ 1.1200 ▪-1.1150 ▪ 1.1100 |
We remain bearish as long as the pair is traded below the level of 1.1360. |
- GBPUSD
As could be seen on the chart above that the pair is traded above the level of 1.2600 which is a strong support 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 1.3000 during the week. On the other hand, breaching the level of 1.2600 would open the door for the pair to reach the level of 1.2400.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3000 ▪-1.3100 ▪ 1.2900 |
▪ 1.2750 ▪ 1.2700 ▪ — |
We remain bearish as long as the pair is traded below the level of 1.3000 |
- GOLD
As could be seen on the chart above that the pair is traded above a strong support level that could be found around 1240 so we remain bullish as long as the pair is traded above it. On the other hand, breaching the level of 1240 would open the door for the pair to reach the level of 1220 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1300 ▪ 1290 |
▪ 1250 ▪ 1220 ▪ 1200 |
We remain bullish as long as the pair is traded above the level of 1250 |
- AUDUSD
This week we have a strong resistance level that the pair will face which is 0.7635. The continuation of trading above the level of 0.7550 would keep us bullish. As could be seen on the chart above that the pair is traded right above a strong support level that could be found around 0.7550 so we believe that as long as the pair is traded above it, the way would be open for the pair to reach the level of 0.7700 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ ▪ 0.7635 ▪-0.7700 |
▪ 0.7500 ▪ 0.7550 ▪ 0.7250 |
We remain bullish as long as the pair is traded above the level of 0.7550 |
- GBPJPY
The pair is still traded above the uptrend line shown on the chart above. We remain bullish. As could be seen on the chart that the pair is traded right above a strong support level which is the uptrend line in red. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 144 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 144 ▪ 145 ▪ 146 |
▪ 142 ▪ 141 ▪ 140 |
We remain long as long as the pair is traded above the uptrend line. |
