Hello Forex Traders!
Summer and August quietness seems to be approaching its maximum in the Forex market after a very uneventful week last week. The currency pairs seem to have positioned themselves in sideways market movements and it will be interesting to see if they can break free from these ranges this week. Most of last week’s weekly candles were only 170 pips in length, meaning the difference between weekly high and low.
The first 2 days bring no major economic news release that could fuel such a volatility expansion. In fact, the market could quiet down further in the run up to FOMC Meeting Minutes, which will be released on Wednesday at 2pm EST. That news announcement might provide the answer the market is looking for regarding the temporary direction of the USD.
Before we dive into the charts, let me share with you some great links I do want you to miss:
KEY LEVELS ON USD
From a technical point of view, the USD seems to be in different stages depending on the second currency:
EURUSD: in a tight range
Key LEVEL: can the currency break the 1.34 resistance or 1.32 support? Those levels might prove crucial and pivotal for the EURUSD. A powerful break of either side could indicate the end of the sideways choppiness and resumption of a trend.
GBPUSD: broken out of down trend line and now at 886 Fib resistance
Key LEVEL: can the GBPUSD break the last Fibonacci retracement level and continue its path up or will the 886 Fib prove to be the Fib which sends the Cable back down? Last week’s high and low will be key levels to keep an eye on as a confirmation. The GBPUSD has had many weeks of bullish candles so it will be interesting battle between the upside momentum and bigger resistance level at 1.5750.
USDCAD: at the bottom of a daily up trend channel
Key LEVEL: will the USDCAD continue in its daily uptrend channel or will the CAD be strong enough to break through the daily support? Here too last week’s high and low (only 90 pip difference) are important levels to measure whether the currency pair remains sideways, continues in the trend channel, or breaks support for a reversal/bigger retracement.
AUDUSD: upward momentum but at major resistance
Key LEVEL: will the AUDUSD respect the daily resistance at 0.93 and the accompanying 786 Fib at 0.9215 and 886 Fib at 0.9260? Last week’s weekly candle is a doji or inside candle (only 170 pips). Any move up slams into the major 0.93 resistance. Any long sentiments are best capitalized on when trading above that level. Shorts have more probability of success below the daily 0.9060 support level.
USDJPY: bouncing off bottom of weekly triangle
Key LEVEL: obviously the bottom and top of the triangle are the main trend lines to keep an eye on. A break of one or both of those lines might not occur until the summer days pass by, but it would be good to keep an eye on it just in case the break does occur this month. Especially the break to the upside, when looking at the weekly upside momentum, is a great with the trend environment.
GBPAUD: inside weekly candle after bearish weekly candle, but still above tops
Key LEVELS: on this non-USD pair, obviously the resistance of the tops has now turned into major support at 1.68-1.69. The currency pair is also back to the bottom of an uptrend channel. The currency will need to show its true intention by either breaking the uptrend to the downside or continuing the uptrend sooner or later, but let us see if there is enough momentum in the market this week to force the currency to make that choice.
Ok Folks, that was a quick weekly round-up per currency pair instead of covering all the angles on multiple time frames. Did you enjoy this quick summary style as well? If so, all your comments are greatly appreciated.
As always, Good Trading this week. If you are in need of more guidance to put your trading back on the main track, take a look at our live Forex trading room right here.
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