In this week’s Week Ahead Analysis we take a look at the key charts of the week with #AUDUSD, #USDJPY, #GOLD and more!
Watch the video to learn more…
Week Ahead Analysis
This week investors will again look to the Federal Reserve Chairman Jerome Powell for further updates on the economy and any recovery to the recent decline in the stock markets. Unfortunately for the Chairman he has outlined the FOMC have to control inflation and if that means being aggressive with monetary policy going forward they will act and this could have a continued negative effect on the stock markets.
In other news the RBNZ are forecast to hike rates by 50bps to 2.00%, this combined with recent Commitment of Traders data could see the Kiwi gain strength against weaker counterparts going into this week.
The strength meter this week shows little change, the USD remains the strongest currency but in the reversal area. The AUD is the weakest currency however the recent elections could create a spark in the currency and it could reverse going into this week.
The AUDUSD price could move higher this week if the USD continues to move lower this week. The strength meter suggests this market is more than likely to move lower this week however, the USD index is at a key resistance and recent elections in Australia could give the market a small boost. Looking at the weekly profiles we can see that there is a naked point of control from a previous weekly profile which could be an important resistance this week. If the price can trade above it we could see further long opportunities, if it rejects we could see the price move much lower.
The USDJPY price featured in last week’s week ahead analysis video as the price looked likely to move lower. If the stock markets continue to fall we could see the market move lower again this week however, a recovery could also be an option. If the price trades back within last week’s value area we could see a continuation back to last week’s point of control.
If the USD follows a similar path to last week we could be looking for a Gold long opportunity this week towards the recent untested point of control around $1850.00. If the price rejects here we could see a move back to the point of control of last week or if breaks through buyers may push the market further.
The S&P500 this week will be watched by all investors as the market looked to rebound towards the end of last week. However, this rebound may only be short lived in the overall market environment. If the price can trade above the recent point of control we could look for a long back to the value area highs.
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