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In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #GBPJPY, #GBPUSD and more!
Watch the video to learn more…
Week Ahead Analysis
Last week the market was surprised by the Bank of Japan intervention and the announcement from Russia talking of nuclear deterrents. This swung the markets into a risk off environment with stocks falling and JPY and USD strengthening.
This week in the news we see multiple speeches from FOMC members which could fuel the recent USD strength. The Federal Reserve Chairman Powell will speak twice this week and investors will be looking for further indications on what the Fed plans to do in the future.
The strength meter for this week highlights the risk sentiment of last week. The JPY has strengthened and reversed from the lows. If the risk sentiment continues the JPY and USD could strengthen further. The NZD is the weakest currency of last week with little signs of slowing down.
USD Index analysis
The USD index broke out of the highs at 110.80 last week and has continued to trade higher. The next level of key resistance rests at 117.00 over 400 pips from the current levels. If the price retest the recent breakout highs of 111.80 we could look for buyers to step back in. If we see evidence of buyers re-entering the markets we could look for long opportunities.
EURUSD analysis
The EURUSD price continues to trend lower breaking through major key lows. If the price was to continue this trend we would see a retest of the 0.9600 support level. This could offer some short term profit taking on the way down. For sellers key levels are 0.9806 and 0.9750. These are the previous lows and minor support areas that could be used as resistance for short selling opportunities.
GBPUSD analysis
The GBPUSD sunk to 40 year lows and closed at 1.0850 after the recent UK Government budget. These tax cuts have been criticized suggesting they help the wealthy and ignore the poor. This could see the Bank of England step up its needs to hike rates. Currently the price is heading towards the March 1985 lows at 1.0552. Price found minor support at 1.1200 and if the price was to retest this level we could see sellers sell any rallies.
GBPJPY analysis
The price of GBPJPY has traded through multiple lows including the 155.50 lows. If the risk sentiment remains in the market we could see a continuation down to the 153.00 support and below. However, after large trading weeks we can often see a pullback on profit taking.
Did you see our Forex Market Wrap Analysis? You can see it here.
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