In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #USDJPY, #GBPUSD and more!
Watch the video to learn more…
Week Ahead Analysis
This week we are light on high impact data which can often see the risk return to the market. The data that is out this week is largely made up of Services and Manufacturing PMI from Europe, United Kingdom and United States. The Jackson Hole Symposium is also on the data list this week, and will see the Federal Reserve Chairman Powell and other Fed members speak. This could add volatility towards the end of the week.
The strength meter shows the USD and JPY reversing from their respective reversal zones. This saw the USD become the strongest currency of last week, and the JPY was the weakest. This momentum could continue this week as the USD remains strong.
The EURUSD price closed bearish on the week showing the potential for the Weekly to form an impulsive phase. The 4hr bearish trend confirms the bearish bias along with the weekly volume profile. The price will open below the previous week’s value area low, this adds confluence to our bearish bias. Price is currently sitting above an untested weekly point of control, if the price finds support here we could look for the price to trade back to resistance areas. The high volume node at 1.0080 could offer resistance in the near term, if the price rejects this level we could see selling continue here. Alternatively, if the price was to return back to the weekly value area low at 1.0122 we could see sellers re-enter here.
The USDJPY was highlighted for long opportunities all of last week due to the strength meter and the weekly close. This past week the price rallied and closed as a strong bullish close. If the price is going to continue higher we need to identify key areas of support to look for opportunities. Last week’s value area high of 135.50 could offer support if the price was to retest this area.
The GBPUSD price closed significantly bearish last week and the momentum is unlikely to change as the USD continues to strengthen. The price could however reverse if we were to see some early profit taking this week. As the price is already at a previous week’s value area low and finding some support we could see the price trade back towards the high volume nodes at 1.1900. If sellers appear here we could see the price continue to push back to last week’s lows.
The price of GOLD looks likely to continue lower going into next week, as the price rejected the key weekly lows. If this turns the price of Gold into a bearish impulsive phase on the higher time frame we could see a return to the previous monthly lows. The price is likely to open beneath the previous week’s value area low which usually shows the price is likely to move lower. Last week’s value area low is resting at $1761.90 which would offer a key resistance level.
Did you see our Forex Market Wrap analysis? You can see it here.
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