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Market Research & Info

Land Prime analyst Shadi Abdo

  • Member of The Egyptian Society of Technical Analyst
  • Head of Education department, Market Strategist, Chief Technical Analyst of Global Leading Forex Brokerage companies
  • Trained over 5000 professional trainers more than 10 years
  • BSc in Economics from Mansoura University

17 July 2018

powered by Land Prime

UK jobs report Tuesday, 8:30. Jobs are aplenty, but wages are not rising at a satisfactory pace. The Claimant Count Change is expected to increase by 2.3K in June after a drop of 7.7K in May. Fluctuations in jobless claims are quite frequent. The unemployment rate for May is estimated to have remained steady at 4.2%. Average Hourly Earnings, arguably the most essential data points, carry expectations for another month at 2.5% in May, which is below the inflation rate. Any change in wages will rock the pound.

 

Jerome Powell testifies Tuesday and Wednesday at 14:00. The Fed Chair goes to Capitol Hill for a two-day testimony in front of different committees of Congress. The prepared statement for the testimony, released on Tuesday, tends to have the biggest impact, but the Q&A sessions can also result in market-moving comments. The Fed is content about the state of the economy with steady job gains for quite some time and rising inflation of late. A total of four rate hikes in 2018 has growing chances. However, officials, including Powell, have raised some concerns about the impact of trade on the economy. Markets will want to hear about inflation and trade more than anything else.

 

USD
Jerome Powell testifies

GBP
UK jobs report

 

  • EURUSD

 

If we deeply look at the daily chart, specifically the last part of price movements, we will find that there is a double bottom pattern that is being formed. The confirmation line of the pattern could be found at 1.1850 so if this level is broken, then the long term bullish movement will have just started by then. On the other hand, if the level of 1.1526 is broken, then the way would be open for the pair to reach the level of 1.13.

 

Resistance levels: Support levels: Recommended:
 1.21
1.20
▪ --
▪ 1.17
 1.1650
 1.1600

We are bullish as long as the pair is traded above the uptrend line.

  • GBPUSD

 

As could be seen on the daily chart that the pair is traded above an uptrend line shown on the chart in red. Also, there is a strong support level on which the pair is traded which could be found at 1.3050. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.32 followed by 1.34. This is conditioned by the continuation of trading above the level of 1.3050. On the other hand, if the level of 1.3050 is broken, then the way is open for the pair to reach the level of 1.28. (In case this happens, we will need a daily close below the mentioned level).

 

Resistance levels: Support levels: Recommended:
▪ 1.36
 1.35
▪ 1.34
▪ 
 1.3150
 1.3050

We are bullish as long as the pair is traded above the level of 1.3050.

  • GOLD

 

As we mentioned last week that the pair was facing a very strong support level that is $1235. It was like a strong wall that the pair could not breach even after many attempts. But finally, it seems to be broken and today's close will confirm the breakout which if it is confirmed, then the way would be open for the pair to reach the level of 1210 followed by 1205 (further downward movement is expected).

 

Resistance levels: Support levels: Recommended:
 1330
 1320
 --
 1235
 1220
 1210

Waiting for the pair to confirm the breakout of the level of 1235.

  • AUDUSD

 

The pair have been trying to breach the uptrend line shown on the chart in red but all of its attempts were unsuccessful. At the same time, this is not considered to be a bullish sign as it is very expected that the pair can breach the uptrend line anytime. So, we still have another strong support level that we can rely on which is the level of 0.73. So, we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 0.75 during the week. On the other hand, breaching the uptrend line along with the level of 0.73 can open the door for further downward movement during the week that it may reach the level of 0.71.

 

Resistance levels: Support levels: Recommended:

▪ 0.7550
0.7600
▪ --

▪ 0.7300
▪ 0.7100
▪ 

We are bullish as long as the pair is traded above the uptrend line along with the level of 0.73.

  • GBPJPY

 

As could be seen on the daily chart that the pair is traded within an ascending channel and right above the downside of it which is very positive for the pair. We believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 151 during the week. This is conditioned by the continuation of trading above the downside of the channel.

 

Resistance levels: Support levels: Recommended:
156
 155
 150.50

144
 144
 143

We are bullish as long as the pair is traded above the downside of the channel.

 

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