In this week’s Week Ahead Analysis we take a look at the key charts of the week with #GBPUSD, #EURUSD, #NZDUSD and more!
Watch the video to learn more…
Week Ahead Analysis
The US leads the data this week with multiple announcements. The focus will be on the Federal Reserve Chairman Powell’s speech on Wednesday to see if the Chairman will give any clues to what will happen in the December meeting. This week we will also see Non-Farm Payroll data which is forecast to come in lower than expected. More poor data could continue to see the USD weaken this week.
Other central bank leaders will be speaking this week including the Bank of England Governor Bailey, RBA Governor Lowe and RBNZ Governor Orr. Investors will be watching these speeches closely to identify details of future monetary policy.
The Strength Meter highlights little change last week. The NZD remains the strongest currency but in the reversal zone. The USD remains the weakest currency but has remained in the reversal zone for 3 weeks straight.
The price of EURUSD is trading between two to three major levels of support and resistance this week. If the price is going to trade higher we could see a retest of either 1.0500 or 1.0600. The 1.0600 level also holds confluence with a higher time frame trendline and could offer traders long targets. On the downside the support for EURUSD is resting at 1.0225 or 1.0100. The 1.0225 will be important as it is a double top neckline if this breaks it could signal a change of trend.
The price of GBPUSD was bullish last week and the momentum looks likely to continue this week into the resistance above. The 1.2200 handle is above which could act as resistance if the price was to reach it this week. Above this level price could head towards the 1.2625 highs. If the price moves lower the previous highs of 1.2000 could act as support in the short term.
The New Zealand Dollar is the strongest currency after the RBNZ announced rate hikes last week. The price is currently trading above the support of 0.6150 and 0.6000. This could be support for the price if it was to move lower this week. The resistance of 0.6450 and 0.6550 would be likely targets for any traders long.
The price of GOLD has traded higher benefiting from the weakness in the USD. This has also been fuelled by a dovish Federal Reserve which could continue this week if the Chairman remains dovish in his speech. Price is currently trading above the key highs of $1725.00 which could act as support again for the price. If price trades higher the key level of $1800.00 could be targets for traders in Gold long.
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