In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #AUDUSD, #SILVER and more!
Watch the video to learn more…
Week Ahead Analysis
All investors’ eyes will be on the ECB this week as they look to raise interest rates back into positive territory. The ECB is forecasted to raise rates to 0.25% but we have seen many central banks hike further. If they were to shock the market we could see some strength return to the EURO. However, any rallies in the Euro could be short lived if the supply of gas by Russia via Nord Stream 1 is suppressed, after seasonal works finish this Thursday. US Flash Services PMI data is forecast to show further growth which could spark some strength in the USD.
The strength meter this week highlights some currencies coming into the key reversal zones. The USD and CHF are the strongest currencies from last week, the GBP was the weakest currency. The USD, CHF and GBP are all in reversal zones which could suggest they will begin to turn from their positions.
Last week we saw buyers defend the parity level, could the same happen again this week? The USD could weaken after another strong week and with the ECB likely to hike rates a pullback could form. The price is currently trading at previous rejection highs, this could see the price retest parity. If the buyers defend this area again we could see a move back to the swing highs. This level could be reached after the ECB news, if sellers appear we could see a short opportunity form.
The price of AUDUSD is ranging on the 4hr time frame between the key 0.6700 to 0.6800. If the USD is going to remain strong we could see the price continue to the downside. If however, the price breaks the highs of 0.6800 we could see a move back to the highs of 0.6880.
The price of Silver has reached a key level we outlined in a previous video. Seasonally, July is the best performing month for Silver but the price wasn’t in a key area where buyers could step in. The price reached a monthly level of support, and we can see on the 4hr time frame on the right, the price has rallied away. This shows us that buyers are in the market at this level. The double bottom that has formed could offer an opportunity if the price was to retest the neckline.
The US stock markets this week could see a move higher, despite the overall downward trend on the weekly time frame, the price looks to be trading within a tight trading range on the 4hr. If the price was to break through the highs we could see a risk on move above the range highs.
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