High-impact news to keep an eye on for the week.
- AUD: Cash Rate, RBA
- USD: Fed Chair Powell Testifies
- AUD: RBA Gov Lowe Speaks
- USD: ADP Non-Farm Employment Change, JOLTS Job Openings, Fed Chair Powell Speaks
- CAD: BOC Rate Statement, Overnight Rate
- JPY: Monetary Policy, BOJ Press Conference
- GBP: GDP
- CAD: Employment Change, Unemployment Rate
- USD: Average Hourly Earnings, Non-Farm Employment Change, Unemployment Rate
The Daily timeframe shows that price had bounced off a significant support level near 32500 with a strong bullish move, breaking through the nearest static resistance and creating a new higher support level. The momentum appears to be in favor of the bulls, with the next potential resistance level at 33900.
Traders may consider a swing Long position around 33200, with the aim of riding it to the next key resistance level.
However, if there is a daily timeframe close below 33100 or a breakout below this level, this swing setup would be considered invalid.
On the 4-hour timeframe, we can see that the recent Lower High has led to a change in momentum from bearish to bullish. Although the upward movement appears to be limited for now, there is a possibility of a short-term reversal at the nearest resistance level around 33600. This could be followed by a corrective movement towards the previously broken-out resistance, which now serves as a support zone around 33100, before continuing the upward movement.
On the daily timeframe, price showed rejection at a critical resistance zone around 164.5 with a significant wick. This was followed by consolidative movements at the resistance zone, indicating bearish momentum.
There is a possibility of downside movements for the long-term outlook. However, if there is a recovery and a candlestick closure on the daily timeframe above 164.5, this scenario may be overthrown. Currently, traders are keeping an eye on the resistance level for a clearer indication of market movements to take advantage of.
On the 4H timeframe, price made a strong impulsive move to the upside, followed by a retest of a key resistance level. However, the momentum immediately reversed, and bears took over in the short term.
For bulls to regain dominance, price needs to regain momentum and support above 164.4, but this possibility hasn’t materialized yet.
Currently, the price action appears to be consolidating above the ascended trendline and below the nearest resistance level. A breakout below the trendline could result in more downside movements and reinforce bearish dominance.
Traders should keep an eye on the psychological level of 162.000 as a potential target for the downside movement, with the current resistance level serving as a possible entry target.
On the Daily timeframe, we can see that price has recently broken a descending trendline from its corrective movements, indicating a bullish bias for the long-term picture. However, upside movements are currently being capped at a key resistance level of around 1.3700. A candlestick closure or breakout beyond this level on the daily timeframe could potentially fuel further upside movements.
Although price has remained consolidative over the past several days, recent rejections suggest potential downside movements as price retests its previously broken-out level. Both bulls and bears remain on the cards, and it’s uncertain whether price will extend its downside corrective movements to its previously broken-out structure or remain within its static support levels and make a bullish move toward its key resistance level and beyond.
In the 4H timeframe, price has faced rejections and consolidation upon retesting a key resistance level, followed by a breakout at an ascending trendline. This suggests that bears may hold dominance in the shorter term, with a potential target at the psychological support level of 1.3500.
As long as price remains below its current resistance level, downside movements remain a possibility. However, if bulls manage to regain momentum and push price beyond this level, we could see a shift in the market sentiment toward a bullish outlook.
On the Daily timeframe, we can see that price has recently retested a major support level, followed by a strong bullish rebound that broke its nearest static resistance level, turning it into a new higher support level. This current momentum leans towards the bulls, with eyes on 1900 as the next potential resistance level.
However, it’s important to keep in mind that the bullish outlook could be overthrown if price breaks its current major support level around 1800, potentially leading to even lower prices. Nonetheless, at the moment, all signs point towards the bulls remaining dominant.
On the 4H timeframe, we can see a recent CHoCH from bearish momentum, with a previous Lower High being broken out, leading to a strong bullish move. Currently, there’s a possibility of a retest towards the previously broken out resistance level, which is currently above 1830. Traders could potentially enter at this level and ride the bullish momentum higher.
If this level fails to hold, there is a chance that price may drop to around 1805 before continuing its upward movement.
Financial Market Analyst
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