In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #GBPUSD, #GBPJPY and more!
Watch the video to learn more…
Week Ahead Analysis: 23rd January
This week, we can expect to see some important economic data releases from the UK and the US, as well as a decision from the Bank of Canada on interest rates.
First, on the economic front, we’ll be watching for the Flash Services PMI figures out of the UK and the US. The UK Services PMI is forecast to come in lower than the previous reading of 49.9, while the US Services PMI is expected to rise slightly from 44.7 to 45.0.
In central bank news, the Bank of Canada is forecast to raise interest rates from 4.25% to 4.50%. This decision will be closely watched as it will provide insight into the bank’s outlook on the economy and inflation.
Turning to the currency markets, the Japanese Yen is showing signs of losing strength, while the Great British Pound is gaining strength. This makes the GBPJPY pair one to watch this week.
The EURUSD pair is currently trading above key highs of 1.0775 and if the US dollar continues to weaken, we could see a breakout of these highs and a move towards the next resistance level of 1.1100.
The GBPUSD pair rejected the recently formed highs of 1.2425 last week, but since then price has continued to remain bullish. A close above these highs would suggest a move towards 1.2625 could be an option for buyers.
The GBPJPY pair could be another one to watch this week, as the currency strength meter suggests. Currently, the price on the weekly time frame shows support of 157.00 being held. This could signal a move towards 168.25 and range highs could be the long-term outlook.
Lastly, the AUDUSD pair remained above the highs of 0.6875 level, this could lead to a move towards 0.7100.
Overall, it will be an interesting week for economic data releases and central bank decisions. Keep an eye on the aforementioned markets for potential trading opportunities.
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