In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #GBPUSD, #GOLD and more!
Watch the video to learn more…
Week Ahead Analysis
All eyes this week will be on the Federal Reserve, as they look to hike interest rates. The forecasts suggest a hike of 75bps is more likely, however, if the Fed acts more aggressively we could see the USD continue to strengthen. Reports are leaning more towards a 75bps hike which is largely priced into the market. We can see this on the USD Index currently with the USD weakening from the highs.
In other news, CPI data out of Australia could rise further this week, the RBA recently hiked rates by 75bps which helped strengthen the AUD. A further rise in inflation could fuel another hike from the Australian central bank.
The strength meter this week shows some change between last week’s reversal currencies. The USD and CHF were the weakest currencies and the AUD, NZD and GBP were the strongest.
This major forex pair could go either way this week with the Fed set to announce rates. If we see a 75bps hike then this may be priced into the market, and a move higher would be more likely. The weekly chart on the left hand side, shows a downward trend but a retracement phase forming. If price is to trade higher we could see a move back to the recent weekly lows. On the 4hr time frame chart this could look like a break of the current trading range.
Similar to EURUSD the price is in a trading range on the 4hr time frame. The weekly chart also shows a downward trend, but in a retracement phase. The strength meter shows USD getting weaker and GBP getting stronger which suggests we should be looking for long opportunities. If the price was to trade through the current highs we could look for an opportunity on a higher low, targeting the previous weekly area of resistance.
The USDJPY price formed a strong bearish weekly close, this suggests that a retracement phase could be forming in the upward trend. The 4hr chart shows prices forming strong lower lows, and if the price were to retest the zone where sellers entered the market, we could be looking for the trend to continue. This will all depend on how the market reacts to the Fed news this week.
The price of Gold rallied from its range lows last week, if this momentum is going to continue, we would expect to see the USD weaken. The weekly chart shows a bullish reaction from the range lows, on the 4hr chart we can see a change in the trend. Now the price is making higher highs on the 4hr time frame we can assume buyers are involved in the market. If the price was to retest the lows we could look for bullish price action as buyers stepped in here most recently.
Did you see our Forex Market Wrap analysis? You can see it here.
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