Week Ahead Analysis: 6th March

In this week’s Week Ahead Analysis we take a look at the key charts of the week with #EURUSD,  #USDJPY, #GBPUSD and more!

Watch the video to learn more…

Week Ahead Analysis

The market is full of high impact data this week, including speeches from central bank speakers from the US, Australia, Canada and Japan. 

The RBA is expected to hike interest rates by 25 basis points from 3.35% to 3.60%. The RBA has been vocal over the rising inflation rate, and needs to act. 

Federal Reserve Chairman Jerome Powell testifies this week which could add volatility to the US market. The US central bank leader will have to face questions over the state of the economy and his answers will be watched closely by investors.

The Bank of Canada is expected to leave rates unchanged this week at 4.50%. A pause in rate hikes were planned due to the slowing housing market, and consumer spending showing the rate hikes are having an effect. 

At the end of the week we have the Non-Farm Payroll data out of the US with jobs expected to come in much lower than the previous release in February. The Federal Reserve is keen to see the jobs market decline in order to help relieve the pressure on inflation. 

The currency strength meter this week shows us that the JPY is the weakest currency and the USD is the strongest currency. The large amount of high impact data this week can often lead to strength in the USD. 

EURUSD

The price on the chart has traded through multiple technical levels and some observations included:

• We saw the price of EURUSD trade higher last week as the USD weakened. 
• If the USD strength returns this week we could expect the price to trade lower towards the lows of 1.0500.
• If however, the USD weakens we could see the price climb back to the resistance of 1.0775.

GBPUSD

The price on the chart has traded through multiple technical levels and some observations included:

• The price of cable ranged as expected last week.
• Price is currently trading between the lows of 1.1930 and the highs of 1.2145.
• If price returns to the highs of the range we could see a rejection here.
• Alternatively, a break of the range lows could see price return to 1.1050.

USDJPY

The price on the chart has traded through multiple technical levels and some observations included:

• The price of USDJPY is one to watch this week because of the strength meter.
• The JPY is the weakest currency and the USD is the strongest. 
• If this continues we could see the price fins support at the demand zone around 135.50.
• If however, the currencies reverse and price trades through the lows of 134.50 we could see price trade lower. 

NZDJPY

The price on the chart has traded through multiple technical levels and some observations included:

• NZDJPY is another chart to watch this week due to the strength meter.
• The JPY is the weakest currency and the NZD is gaining strength.
• Price last week broke through the highs of a range around 165.00. 
• Since then the price has traded back into the range. 
• If price can find support at the previous lows of 83.75 traders could look for long opportunities.

Have you watched our Forex Market Wrap analysis? You can see it here. 

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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