In this week’s Week Ahead Analysis we take a look at the key charts of the week with #GBPUSD, #USDJPY, #GOLD and more!
Watch the video to learn more…
Week Ahead Analysis
This week kicks off with GBP Monetary Policy Report Hearings which BoE Governor Bailey will attend. Recent comments from the Governor show a central bank growing in concerns of rising unemployment and inflation. These hearings could highlight the further risk of recession and could cause the GBP to continue its spiral lower against stronger markets. This comes all before the CPI y/y figures which are forecasted to show strong growth to 9.1%.
In the US markets, investors will be keeping a close eye on the retail sales and the Federal Reserve Chairman’s speech as they look for more enlightenment on the federal reserve’s monetary policy plans. The recent decline in the stock market could be a concern for the Fed however strong retail figures could spark some fresh buying.
Australia’s parliamentary elections continue going into this week with current polls showing the labor market in control currently. This could add some volatility to the AUD this week especially towards the end of it as employment and unemployment data is set to release.
The strength meter this week highlights the Japanese Yen starting to gain strength moving from its reversal lows. The USD remains the strongest currency with AUD, NZD, and GBP the weakest. This could offer trend trading opportunities this week on the AUDUSD, NZDUSD, and GBPUSD going into this week.
The GBPUSD price could continue on its path lower this week as the price remains bearish. GBP Monetary Policy Report Hearings could further dent the GBP and could see the GBPUSD price head back towards the major lows. If this does occur we could look for short opportunities at minor supply zones within the 4hr time frame. If the price reaches these areas and forms bearish price action we could see sellers enter the market.
The USDJPY price is another one to watch going into this week as the price has formed a bearish weekly close for the first time in 9 weeks. When the price moves like this we can often see a sharp pullback as institutions look to flip the price the other way. We have also seen stocks and bond yields decline which could add to some short term buying of the haven JPY. The 4hr time frame shows the price breaking through minor lows so we can begin to look for minor supply zones for bearish price action.
The price of Gold is also interesting going into this week as the price formed another strong bearish candle last week. The momentum is with the sellers here and the price is approaching a major support level where the price saw significant demand recently. If the price reaches this level we could see a strong rejection offering both short and long ideas going into this week’s trading.
Investors will be looking to the equity markets this week as data could begin to revive them. If retail sales which are forecasted to be strong come in as expected we could see a reversal to the current downside. A break of the 4hr highs would be ideal to confirm buyers are stepping into the market in the short term.
Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.