While Donald Trump says his last words as the US President and Joe Biden brings his oath this week, the CAD, JPY, and EUR will see their Central Banks share their respective monetary strategies. In the meantime, while the USD gets stronger, oil and gold take a pause. So, how do we trade Forex this week?
Weekly Market Outlook: April 15-19
Information is not investment advice
Let’s consider the key events with technical setups for the upcoming days.
On Wednesday, CPI levels will determine the direction of the New Zealand dollar, British pound and Canadian dollar. The trade balance release will be under the attention of traders too.
Thursday will delight traders of different currencies. Australian jobs data will determine the direction of the domestic currency. Retails Sales figures will affect GBP, CAD, and USD. The euro may get an impact from the PMI readings.
On Friday, the trading is anticipated to be soft because most of the major banks will be on holidays.
What about the technical side?
Signals of the upward movement for the EUR/USD pair.
Last week, we discussed EUR/USD that had been trading sideways. Bulls managed to pull the pair out of the consolidation range and up to now, it seems like EUR/USD has begun its way up. Indicators started signaling the upward movement as well. As soon as the pair sticks above 1.1328, chances that the euro will keep rising will increase. The next crucial resistance lies at 1.1390 - the level of the trendline. A breakthrough above 1.1425 will create an uptrend. If the USD gains strength, a rise will be limited. The first key support lies at 1.1190.
Is it a consolidation of USD/CAD?
The situation om the USD/CAD market is uncertain. It seems like the pair entered the consolidation. The ADX indicator is below the 20 level that signals the lack of the trend. The future direction will depend on economic data. The bottom line of the consolidation lies at 1.33. As soon as bears pull the pair below it, risks of the further decline will increase. The next important support lies at 1.3183. Moreover, the Parabolic SAR indicator has been forming dots above the price that is a signal of the downward movement. However, the situation may change if the USD gains strength. To increase chances for the movement upwards, the pair need to stick above 1.3383. A break above 1.3455 will end a consolidation.
AUD/USD is in a consolidation period.
The weakness of the USD gives chances to the Australian currency. To hope for the further increase, the pair needs to break above 0.7182. Next resistance is located at 0.7227. A breakthrough will push Australian dollar/US dollar to 0.7296. However, a strong surge may lead to a further slow down. The pair may turn around towards 0.7062.
The USD recovered from multi-year lows. What are the key levels and targets for EUR/USD, GBP/USD, USD/JPY, AUD/USD, gold, and oil in the coming days? Watch the video to find out!
The review of the last week of the year by FBS
Most currencies continued Wednesday's trends after Joe Biden inauguration. Gold went upwards, oil ceded some gains. In this video, we make short-term forecasts and review how accurate our predictions were.
Joe Biden takes the presidency in the US, the Forex market is mostly bullish. We were correct with many of our short-term projections yesterday. Let's see what happens today and what the week brings.
In this daily update, you have short-term and mid-term outlook for the main currencies and commodities weighted against the long-term horizon. You are also provided with suggestions on which to levels to look at and what the most likely trajectories are for USD, EUR, AUD, GBP, gold and WTI oil.