19 February 2018
powered by Land Prime
The greenback suffered a bad start to the year: poor growth and scandals hurt the US dollar. Hopes for fiscal stimulus faded with the repeated failures to repeal Obamacare. Despite two rate hikes in the first half, the dollar struggled. Other economies outperformed America.
The second half already looks a lot different: economic growth reached 3% annualized and the Fed seems to stick to its plan to hike rates three times. In addition, Trump’s tax plan inspires markets, despite hurdles to pass it before Christmas.
Headwinds come from the political scandals. Low inflation also weighs on the dollar. If the “mystery” persists and wages do not accelerate, Janet Yellen and co. could refrain from further tightening. The new Fed Chair Jerome Powell will take office in February 2018, and he may not stick to the current plan of raising rates three times.
USD
- EURUSD
As could be seen on the daily chart that the pair is traded below a strong resistance level that is 1.2530. Therefore, we are bearish as long as the pair is traded below it that it may reach the level of 1.2250 during the week.
Resistance levels: |
Support levels: |
Recommended: |
▪ 1.2530 ▪ -- ▪ -- |
▪ 1.21 ▪ 1.1600 ▪ 1.1550 |
We are bearish as long as the pair is traded below the level of 1.2530.
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- GBPUSD
As could be seen on the daily chart that the pair is traded in nowhere to enter the market. So, we will be waiting for the pair to reach the level of 1.4270 (this is where we can go short) or 1.3770 (where we can go long). No trading is recommended till the pair reaches on of these levels.
Resistance levels: |
Support levels: |
Recommended: |
▪ 1.4100 ▪ 1.3970 ▪ -- |
▪ 1.3800 ▪ 1.3700 ▪ 1.3600 |
Waiting for the pair to reach on of the levels mentioned in the report.
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- GOLD
As could be seen on the daily chart that the pair is traded below a strong resistance level that is 1360. So, we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1330 during the week.
Resistance levels: |
Support levels: |
Recommended: |
▪ 1350 ▪ -- ▪ -- |
▪ 1310 ▪ 1300 ▪ 1290 |
We remain bearish as long as the pair is traded below the level of 1360.
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- AUDUSD
As could be seen on the daily chart that the pair is traded above a strong support level that could be found at 0.7850. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 0.8000 during the week. On the other hand, breaching the level of 0.7850 can open the door for further downward movement during the week.
Resistance levels: |
Support levels: |
Recommended: |
▪ 0.8000 ▪ 0.7900 ▪ --
|
▪ 0.7737 ▪ 0.7600 ▪ 0.7500 |
We are bullish as long as the pair is traded above the level of 0.7850.
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- GBPJPY
As could be seen on the char above that the pair is traded within an ascending channel. It is traded right above the downside of the channel so we can go long targeting the level of 152 during the week. On the other hand, breaching the downside of the ascending channel can open the door for further downward movement during the week.
Resistance levels: |
Support levels: |
Recommended: |
▪ 156 ▪ 155 |
▪ 148 ▪ 147
|
We remain bullish as long as the pair is traded above the downside of the pattern.
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