Australian rate decision: Tuesday, 4:30. The Reserve Bank of Australia last changed interest rates in August but has adopted a neutral stance since then. The Cash Rate is expected to remain unchanged at 1.50% for another month and the Aussie will move on the tone of the statement. On one hand, the Australian economy is doing fine, with solid jobs growth and consumption. However, worries about China weigh on the outlook. In the past, the RBA took advantage of downfalls in the exchange rate to push the currency even lower. Will they hit the A$ when it’s down once again?
US JOLTS Job Openings: Tuesday, 14:00. If the Federal Reserve needs yet another jobs report in order to make its decision, the number of job openings serves as a hint. Despite being a laggard (the data is for April against May for the NFP), the publication still moves the needle as the Fed eyes it. In March, job opening stood at 5.74 million annualized. A small slide to 5.65 million is on the cards.
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US JOLTS Job Openings
- EURUSD
Update: we remain the same. As could be seen on the chart above that the pair is traded below a strong resistance level around 1.1300. It also matches a Fibonacci level of 0.386 (From 14.10.2014 to 03.01.2017). So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.1200 followed by 1.1100 during the week. On the other hand, if the level of 1.1300 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: |
| ▪ 1.1275 ▪-1.1300 ▪ 1.1350 |
▪ 1.1200 ▪-1.1150 ▪ 1.1100 |
We remain bearish as long as the pair is traded below the level of 1.1272. |
- GBPUSD
Update: We remain the same. As could be seen on the chart above that the pair is traded right above a strong support level that could be found at 1.2750 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 day. In case that the level of 1.2750 is broken, then the way would be open for the pair to reach the level of 1.2700 followed by 1.2600.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3000 ▪-1.3100 ▪ — |
▪ 1.2750 ▪ 1.2700 ▪ — |
We remain bullish as long as the pair is traded above the level of 1.2750. |
- GOLD
Update: The gold managed to break through the downtrend line, on its way to reach the level of 1300.The Gold managed to reach the downtrend line shown on the chart above. We believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1250 during the day. This is conditioned by the continuation of trading below the downtrend line. On the other hand, if the pair managed to break through the downtrend line, then this would be very bullish for the Gold that it might reach the level of 1300 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1300 ▪ 1290 |
▪ 1250 ▪ 1220 ▪ 1200 |
- AUDUSD
Update: the pair is on its way to reach the level of 0.7500. As could be seen on the chart that the pair went up once it touched the uptrend line shown on the chart in red. It may continue going up to reach the level of0.7500 then there would be two scenarios: if the pair respects this level, then it may go down targeting the level of 0.7400. The second scenario: if the pair breaks through the level of 0.7500 then it may go up to reach the level of 0.7600.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7500 ▪ 0.7600 ▪-0.7700 |
▪ 0.7350 ▪ 0.7300 ▪ 0.7250 |
We remain bearish as long as the pair is traded below the level of 0.7500. |
- GBPJPY
Update: the pair is on its way to the uptrend line. As could be seen on the chart that the pair may continue going down to reach the uptrend line shown on the chart. This is not really a negative movement. This can support the strength of the GBP against the JPY. Let’s see what will happen
| Resistance levels: | Support levels: | Recommended: |
| ▪ 144 ▪ 145 ▪ 146 |
▪ 142 ▪ 141 ▪ 140 |
We remain bearish as long as the pair is traded below the level of 144. |
