18 July 2018
powered by Land Prime
UK inflation report: Wednesday, 8:30. Britain’s Consumer Price Index has been falling of late, contributing to the decision not to raise rates in May. Annual headline CPI fell to 2.4% in May and is now projected to rise to 2.6%. Core CPI is expected to remain stable at 2.1%. The Retail Price Index (RPI) which is also eyed, carries expectations for an increase from 3.3% to 3.5% y/y. Contrary to the US, headline CPI tends to have the most significant impact.
US housing data: Wednesday, 12:30. US Building Permits stood at an annualized rate of 1.30 million in May and are expected to rise to 1.33 million in June. Housing starts carry expectations of going the other way: from 1.35 million to 1.32 million. Both figures will need to go in the same direction to move markets. In some cases, the numbers offset each other.
USD
US housing data
GBP
UK inflation report
- EURUSD
Update: We remain the same. 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
Update: Waiting for a daily close below the level of 1.3050. 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
Update: The breakout of the level of 1235 was confirmed so the way it open for the pair to reach the level of 1210. 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
Update: Still traded above the level of 0.73. 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
Update: We remain the same. 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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