In this week’s Week Ahead Analysis we take a look at the key charts of the week with #GBPUSD, #EURUSD, #NZDUSD and more!
Watch the video to learn more…
Week Ahead Analysis
The news this week is light in terms of high impact data but there are still market moving events to be aware of. This week we see the US Congressional Elections with all the seats in the house and senate to be voted for. Currently polling suggests the Republicans are in the lead but we could see the votes swing either way.
In other news the US CPI data is out on Thursday with expectations for it to come in higher than previous. If however it comes in softer than expected we could see the USD move lower as this could signal the Fed will slow the pace of tightening in the December meeting. The Federal Reserve Chairman Powell has remained strong on his views on inflation rates below 2%. So if we were to see strong numbers we could expect the Fed to make one more aggressive hike in December.
The strength meter shows the GBP reversed from the +7 level and ended up becoming the weakest currency of last week. The NZD remained strong and looks likely to continue going into this week.
The USD Index will be one to watch this week as all the high impact data surrounds the greenback this week. Price is currently trading within a bullish channel but the bearish close on Friday does threaten the buyers of the USD. A break and close below the lows of 110.00 would invite sellers into the market with the price likely to test the lows of 108.00. If however the price trades back above 113.00 we could see buyers continue to push price within the bullish channel.
The EURUSD price still remains below the parity level however the bullish Friday close suggests we could see the price trade above this level this week. If the USD Index breaks down below the key support levels, the EURUSD price is more likely to trade above 1.0100. A break and close above this level could see the price trade up to the 1.0350 resistance level.
The NZDUSD price was one to watch last week as the NZD remained strong. If this continues the currently weekly downtrend pullback phase could remain with the price heading back to resistance lows at 0.6000. If the price falls to retest the bullish channel lows and the 0.5800 highs we could look for buyers to step in at these levels.
Gold buyers continue to defend the lows of $1620.00 with Friday’s close being a strong bullish one breaking above the $1675.00 level. This strong push suggests the buyers are happy at these levels and we could see the price break back towards the $1730.00. On the lower time frame if the price forms a higher lows we could see buying opportunities on the trend.
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