In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD, #GOLD, #GBPUSD and more!
Watch the video to learn more…
Week Ahead Analysis
The news this week is littered with USD data which could see volatility rise. All eyes will be on the non-farm payrolls which are currently forecast to show a drop in both Average Hourly Earnings and Employment Change. This Federal Reserve has been open about not looking for full employment and expecting the employment to fall. This is a catalyst of hiking interest rates which the Fed are looking to do in their next meeting.
The strength meter this week doesn’t show too much. The CHF and GBP have entered reversal zones, this could see the GBP reverse from its weakness to finding strength. And the CHF could go from being strong to weak.
The EURUSD had a strong negative close into Friday, this momentum will likely continue into this week. If the price is to trade lower we should expect to see the break of the current lows around 0.9900 and a break of the weekly value area low. This could offer further short opportunities this week with the price likely to search lower prices.
Similarly to the EURUSD price, GBPUSD formed a strong bearish rejection of the monthly value area low. If this continues into next week we could look for short trading opportunities of the previous weekly value area low. If the price does move lower we could see the price drive down into the weekly lows around 1.1657.
The S&P500 strong bearish close often leads to further downside on the Monday. If the pressure continues we could see a gap form and the price could continue into last month’s value area. A close back within this zone could see the price continue to the other side of value. This should see the price back towards the 3775.00 volume levels.
The price of Gold is trading back within the value area high of the previous month. This can often see the price trade to the other side of value. This means the price of Gold could be heading back to the $1702.00 lows. The price is currently finding minor support at a weekly high volume node of $1736.00, if the price can break this area we could see a short opportunity form.
Did you see our Forex Market Wrap Analysis? You can see it here.
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