GBPUSD could retrace to 1.32 ahead of an important week

11 July, 2016

Daily Forex Market Preview, 11/07/2016

GBPUSD is likely to see a retracement back to 1.32 level ahead of the inflation report hearing and the BoE meeting this week. The falling wedge pattern on the 4-hour chart is indicative of a short term correction to the upside with 1.32 level in focus having acted previously as a strong support level; a retracement could establish resistance here. Gold prices, on the other hand, could stay range bound within 1375 and 1350 levels with further gains or declines coming off a breakout from either of the two levels.

EURUSD Daily Analysis

EURUSD (1.104): EURUSD closed with an outside bar on Friday with prices still supported above 1.10. The ranging price action between 1.110 and 1.10 is, therefore, likely to continue over the week with a breakout off these levels likely to see a continuation. On the 4-hour chart, EURUSD has been posting lower highs ever since prices bounced off the 1.0950 level. Minor support/resistance is seen at 1.1045 which could see the sideways price action continue to move within the levels mentioned.

USDJPY Daily Analysis

USDJPY (101.43): USDJPY is looking to retrace its declines with Friday's session closing in a modest spinning bottom candlestick pattern. A bullish close today above the resistance at 102 could signal the correction. On the 4-hour chart, we can see a strong hidden bearish divergence in play with 102 very likely to hold out as resistance. USDJPY could, therefore, remain range bound within 102 and 101 levels in the near term. A break below 101 could, however, signal a test to the 100Yen psychological support level.

GBPUSD Daily Analysis

GBPUSD (1.296): GBPUSD formed an inside bar on Friday and could potentially signal either a continuation or a retracement depending on which way the breakout is triggered. Last Thursday's high of 1.3047 and lows of 1.2876 remain the key levels of interest. To the upside, resistance is seen at 1.32 which previously acted as support and could potentially cap the rallies. Further upside is expected only on a breakout above this level. To the downside, 1.28, last week's lows remain the key level. On the 4-hour chart, prices are seen a gradually breakout from the descending wedge pattern, and further upside can be seen only above 1.30, for a move to 1.312 - 1.32.

Gold Daily Analysis

XAUUSD (1366.44): Gold prices have remained supported to the upside, but the price action is showing signs of consolidation above the $1350 handle. After falling to 1350, gold prices briefly pulled back and closed the latest 4-hour session within a spinning top near 1371.91. A bearish follow through here could potentially signal a decline back to 1350. Overall, gold prices could stay flat within 1375 and 12350 in the near term with the support at 1327.50 likely to be tested on a downside breakout.


Source link  
Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...

Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...


EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...

Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...


US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...

US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

Markets brace for UK Super Thursday

The Bank of England meeting, industrial and manufacturing production numbers and fresh inflation forecasts...

  


Share: