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
29 January 2020
Australian CPI: Wednesday, 00:30. The land down under releases inflation figures only once per quarter, making every publication substantial. Headline Consumer Price Index carries expectations of accelerating from 0.5%to 0.6% in the fourth quarter of 2019 while the Trimmed Mean CPI (core) is projected to repeat the rise of 0.4% that was seen in the third quarter. After the recent strong jobs statistics, the Reserve Bank of Australia will likely hold rates unchanged.
Fed decision: Wednesday, 19:00, press conference at 19:30. After three consecutive rate cuts, the world’s most powerful central bank signaled it would take a long pause. Since then, officials have reiterated this message, that rates are “appropriate.” Nevertheless, investors will scrutinize every word in the accompanying rate statement and that comes out of Jerome Powell, Chairman of the Federal Reserve. In the previous decision, Powell reaffirmed his stance that the bar for raising rates is higher than the one for cutting them. Inflation would first need to sustainably rise before the Fed would consider hiking borrowing costs. However, a deteriorating outlook could trigger a cut. Markets will be watching his words about this topic and also about the recent mediocre jobs report, the healthy growth rates, and lower trade tensions between China and the US. An upbeat tone could lift the dollar while a downbeat one could depress it.
AUD Australian CPI
USD Fed decision
As could be seen on the chart above that the pair is traded below a strong resistance level that is 1.1040. Therefore, we are bearish as long as the pair is traded below it. Our first target is 1.0990.
▪ 1.1150 ▪ 1.1100 ▪ 1.1040
▪ 1.0990 ▪ 1.1950 ▪ 1.0900
We are bearish as long as the pair is traded below the level of 1.1040.
The chart above shows that the pair is traded within a symmetrical triangle. If the downside is broken, we can go short targeting the level of 1.2850. On the other hand, if the upside is broken, we can go long targeting the level of 1.3250.
▪ 1.3400 ▪ 1.3350 ▪ 1.3300
▪ 1.2900 ▪ 1.3000 ▪ 1.2850
Waiting for the breakout for one of the levels mentioned in the report.
The chart above shows that the pair is traded within a bullish channel. We will be waiting for the pair to reach the upside around 1587. In case it shows up bearish evidence below it, we can go short targeting the level of 1570.
▪ 1590 ▪ 1587
▪ 1570 ▪ 1565 ▪ 1560
We will be waiting for the pair to reach the upside around 1587
The pair has reached a strong support area located between: 0.6750 to 0.6684. Therefore, we will be waiting for bullish evidence to show up there then we can go long targeting the level of 0.6920.
▪ 0.7123 ▪ 0.6988 ▪ 0.6820
▪ 0.6750 ▪ 0.6684 ▪ 0.6600
Waiting for bullish evidence to show up.
The chart above shows that the pair is traded above a strong support level that is 141. Therefore, we are bullish as long as the pair is traded above it. Our first target is 143 followed by 144.
▪ 146.50 ▪ 146.00 ▪ 144.20
▪141 ▪ 140.50 ▪ 140.00
We are bullish as long as the pair is traded above 141
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