With major central banks, including the Bank of Japan, Bank of England, and US Federal Reserve, set to announce interest rate decisions, the markets are ready for significant changes. The US has shown strong economic reports recently, suggesting stable interest rates, which could strengthen the dollar. Meanwhile, a shift from tech to mid and small caps has sparked movements in the stock markets.
Let's dive deeper into our key trading instruments:
EURCAD
EURCAD continues to show a bullish trend on higher timeframes, with major resistance levels to be considered as target zones at 1.5296 and 1.5530. On the weekly chart, a clear pattern of higher lows and bullish divergences suggests an upward path. The daily and lower timeframes, however, indicate a temporary slowdown in momentum, with potential short-term retests of these key levels. This presents a strategic entry point for traders looking to leverage the overall bullish trend.
EURJPY
The EUR/JPY pair recently bounced lower from the significant Fibonacci resistance level at 172.50, highlighted by bearish divergence on the weekly chart. While we anticipate a deeper correction, the upcoming BOJ policy announcement this week could trigger a bullish pullback. This presents a prime opportunity to sell on the rise. Keep an eye on the 165 and 163 levels as potential downside targets.
GBPUSD
GBPUSD has shown a bullish divergence on the weekly chart and has formed a bullish pattern on the daily chart. The long-term upside potential is 1.4250. It has currently broken above the falling trendline resistance and continues to maintain the bullish pattern.
NASDAQ
NASDAQ has been experiencing a pullback as investors shift from tech to mid and small-cap stocks. Key Fibonacci retracement levels have not been hit yet, suggesting potential further declines. However, any signs of strength near these levels could indicate a reversal or slowing of the downward trend. This shift provides a unique trading opportunity that requires careful monitoring of support and resistance levels.
XAUUSD (Gold):
Gold maintains a strong bullish stance in the long-term charts. Despite short-term volatility, key trend lines and bullish divergences on the 4-hourly charts suggest that any dips are buying opportunities. The immediate resistance at 2389 is crucial; breaking above this could see a move towards higher resistance levels, offering significant profit potential.
This week is filled with major market events that could greatly influence these instruments. Stay informed, adapt your strategies based on the evolving market conditions, and use the information from our detailed analyses to get the most out of your trading outcomes.
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