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In this week’s Week Ahead Analysis we take a look at the key charts of the week with #GBPUSD, #NZDUSD, #EURJPY and more!
Watch the video to learn more…
Week Ahead Analysis
This week the news calendar is full of high impact data which will add lots of volatility. Often these types of news weeks can encourage the market to move into safe haven currencies such as the USD and JPY.
This week sees several central bank rate announcements but arguably the most important update will come from the Federal Reserve. The Fed is expected to hike interest rates from 3.25% to 4.00% which is a 75bps hike. Recently headlines have put doubts on the Federal Reserve to hike rates by 75bps and if they will continue to hike aggressively at all. This doubt has seen the USD weaken and could continue this week if the Fed outlines a slow down in rate hikes to come.
Later in the week the Bank of England will announce a rate decision with expectations of a 75bps move to bring rates up to 3.00%. The recent Government turmoil saw the GBPUSD price fall to new lows however, since the new PM was announced as Rishi Sunak the cable price has moved higher. This forecasted move could give the currency pair further strength this week.
The strength meter this week shows the GBP is the strongest currency at the top of the chart followed by EUR. The USD, AUD, CHF and JPY are all weakening offering potential short opportunities on those currencies.
GBPUSD Analysis
The GBPUSD price could suffer from high volatility this week as we have a Federal Reserve and Bank of England announcement. If however the price of cable is going to continue on its current path we will likely see the price trade higher. Currently price is trading above the recent 1.1500 highs with the next area of resistance being the 1.1800 weekly and monthly lows. A break above the 1.1600 level will offer buyers the opportunity to trade to the next resistance level.
NZDUSD Analysis
The NZDUSD price could trade higher according to the strength meter. The strength meter highlights the USD was the weakest currency last week and the NZD was one of the strongest. Looking at the current daily chart price action we can see that towards the end of the week the price formed low ranging candles. If the price breaks these highs we could see an impulsive phase form towards the 0.6000 resistance.
EURJPY Analysis
The EURJPY price has broken and remained above the 145.50 level. This consolidation that has formed could see the price head to the next area of resistance which is 150.00. The price will need to break through some lower time frame trend before being used for long opportunities by trend traders.
GOLD Analysis
The price of Gold turned at the end of last week with the price failing to trade above the $1675.00 level of resistance. The 4hr time frame here shows the price breaking into new lows. This could be in anticipation of the Federal Reserve rate hike announcement. Larger rate hikes see the price of Gold fall which in turn could see the price trade to the $1620.00 lows before finding support.
Did you see our Forex Market Wrap Analysis? You can see it here.
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