|Friday||US, French, German PMI|
As the week comes to an end, let’s review what we discussed in Week Ahead Analysis.
Following up on our analysis on Monday, GBP had the strength to break above the bearish trendline. It is still following the projection (arrow) that we drew and is now retesting the broken resistance. Will the price bounce further upwards to end the week? There is also 50 period moving average acting as a dynamic support.
Support: 1.1925/ 1.1760
Resistance: 1.2050/ 1.2100
EURUSD Daily Chart
We were expecting the fibre to continue the bounce from parity and proceed to test the bearish trendline but price stalled when it was just shy of 30 pips away from 1.0300. Currently, there is no directional bias but since the pair is down 82 pips since market opened today, the possibility of ending the week in red is greater.
Gold has had an eventful week. It plunged and tested 1680 major daily support yesterday and had a decent recovery. Now, gold is faced with a broken support-turned-resistance at 1722. The tendency for the resistance to hold is much higher, considering the existing bearish momentum is still in play.
We can also draw confluence from the Interest Rate decision by the Bank of Canada on Wednesday.
The SP500 is following our first projection nicely. If there is something to that is not so nice for the bulls, it is the lack of strength in the breakout. Notice the short-ranged bullish candles after the breakout? This implies that confidence in this breakout is not as well established and may result in a fakeout.
Support: 3950/ 3750
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