Euro-zone inflation: Friday, 9:00. The European Central Bank has only one mandate: inflation. The flash read of inflation is closely watched and impacts the euro. Back in May, headline CPI advanced by 1.4% y/y while core inflation slipped under 1% down to 0.9%. Headline inflation carries expectations for a slide to 1.3% while core inflation is forecast to advance to 1%.
US Core PCE Price Index: Friday, 12:30. This is the favourite inflation measure of the Federal Reserve, and it has been sliding. After edging closer to the 2% target, the measure slipped down to 1.5% y/y. Another drop is expected now, probably to 1.3% if the Core PCE follows the Core CPI. Month over month, a rise of 0.1% is predicted.
Canadian GDP: Friday, 12:30. Canada reports its GDP on a monthly basis, so this time we get a look into Q2, with this report for April. Back in March, the economy grew by no less than 0.5%, encouraging the central bank to change its stance to hawkish. Can growth continue?
USD
US Core PCE
CAD
Canadian GDP
- EURUSD
Update: We remain the same as long as the pair is traded above the level of 1.1360. Our next target is 1.1500. 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: |
| ▪ 1.1550 ▪-1.1500 ▪ 1.1450 |
▪ 1.1200 ▪-1.1150 ▪ 1.1100 |
We remain bullish as long as the pair is traded above the level of 1.1450. |
- GBPUSD
Update: Our final target was hit (1.3000) so congratulations on this. No trading for today. 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 |
▪ 1.2750 ▪ 1.2700 ▪ — |
We remain bearish as long as the pair is traded below the level of 1.3000 |
- GOLD
Update: Nothing new, we remain the same>> the pair is still traded above a strong support level which is the downside of the ascending channel shown on the chart. 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 |
▪ 1240 ▪ 1220 ▪ 1200 |
We remain bullish as long as the pair is traded above the level of 1240 |
- AUDUSD
Update: Our final target around 0.7700 was hit, no trading for today. 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
Update: We remain bullish as long as it is traded above the uptrend line. 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 ▪ 146 ▪ 145.40 |
▪ 142 ▪ 141 ▪ 140 |
We remain long as long as the pair is traded above the uptrend line. |
