In this week’s Week Ahead Analysis we take a look at the key charts of the week with #GBPUSD, #EURUSD, #USDCHF and more!
Week Ahead Analysis: 2nd August
Strength and Weakness Table
The strength and weakness table highlights some significant changes in the currencies last week that could continue into next week.
The USD was the weakest currency last week offering some reversal opportunities on the major forex pairs.
The Swiss Franc and the Canadian Dollar were the strongest currencies of last week. With the Australian Dollar and Japanese Yen in reversal positions.
The USD Index has broken through the daily channel showing the potential for the market to form a down trend.
This will be confirmed if the price can form a lower high, the previous lows around 92.50 could offer resistance. If the price forms low ranging candles we could look for the downtrend to continue from here.
EUR/USD has formed a strong bullish weekly close suggesting the reversal could continue. If the price forms a retracement phase with the price retesting the trendline as support we could look for long opportunities.
GBP/USD rallied significantly last week in line with our previous week ahead analysis video, will the market continue to rally?
After such a strong move we should often expect a retracement to form and with the Friday close suggesting a pullback in likely we could look for a move back down to the support around 1.3800.
If the price starts to form bullish reversal patterns here we can look for a long opportunities.
USD/CHF is forming a downtrend on the daily timeframe after the price formed a double top pattern a few weeks ago.
If the price pulls back into the previous swing lows and forms a bearish reversal set up we can expect the trend to continue in line with the strength and weakness table.