In this week’s Week Ahead Analysis we take a look at the key charts of the week with #GBPUSD, #AUDUSD, #GBPAUD and more!
Watch the video to learn more…
Week Ahead Analysis
This week investors have important high impact news to take in starting with the RBA. The Australian central bank has been talking of hiking rates without following through thus far. The forecasts are also showing that the RBA is more likely to leave rates unchanged, this could disappoint investors and we could see a reversal for the Australian Dollar. The US is set to release the FOMC meeting minutes which could see the USD strengthen if talks of more aggressive hikes have been outlined.
Seasonally we could be looking out for the GBP, the beginning of April usually sees the currency strengthen. We could combine this information with the strength meter which has highlighted the GBP has moved from the extreme lows and is showing signs of strength. The AUD and NZD were the strongest currencies however the updated strength meter shows that they have reversed from the extreme highs offering reversal opportunities.
GBPUSD is one to watch this week due to the seasonal and strength meter confluences. The GBPUSD price is resting above 1.3100 which could be an area that buyers step in. If the price can trade back and even beyond the 1.3200 we could look for further long opportunities. The weekly chart continues to show the bullish divergence that has formed which can indicate a bullish reversal is forming.
The AUDUSD price has formed a bearish indecision candle at the highs showing the potential for a reversal to form. This combined with the strength meter could lead to some selling opportunities this week. The 4hr time frame is showing the price is forming a consolidation at the highs, if the price can break through the lows we could see a move down to the demand zone highlighted below.
If the strength meter is highlighting the GBP is moving from the extreme lows and the AUD is moving from the extreme highs we could see a reversal form. The weekly chart shows the price has made a low ranging candle at the previous demand lows which could see buyers step back in. If the 4hr consolidation gets broken to the upside we could begin to look for bullish ideas.
The GBPNZD price could also be one to watch for a reversal in line with the strength meter. We highlighted this currency pair in last week’s video and we think it is worth watching again. The RSI on the weekly chart is in an oversold condition with the price forming a bullish reversal candlestick from the swing lows. If the price can break the trend on the 4hr time frame we can be looking for long ideas.
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