Buy EUR/USD – MT is Sideways Normal.
Daily chart.Technical overview: Price is currently consolidating within the range after attempting to break the secondary resistance level at 1.19. Look for a break above 1.19 with bullish confirmation to enter a buy towards our target of 1.24.
Fundamental analysis: The early gains made by the EUR during the start of the week were wiped out due to lower than expected data coming out from Europe. Better than expected data coming out from the US signifies signs of recovery in the US economy.
However, with political tensions arising in the US, we can expect this to weigh on the dollar and be favourable for the EUR.
Wait USD/JPY – MT is Sideways Normal.
Technical Overview: After the formation of an evening star candle identified last week, there has been bearish follow through. The market, however, has turned sideways and ended the trading week with a formation of a Doji candle signifying uncertainty. We may expect the USD/JPY to continue consolidating in the week ahead.
Fundamental Overview: Despite lower than expected Japan GDP, the market continues to be in favour of the Yen. Strong trade data coming out from Japan has also contributed to the recent gains with import and exports beating estimates. However, with US data consistently beating estimates, the market is currently trading in a sideways market type.
Moving into the week ahead, it will be a quiet one for the Yen as the only key data kept in focus is Japan’s leading economic index. The market will be driven by the data coming out from the US or any escalation of trade tensions between the US and China.
Wait GBP/USD – MT is Sideways normal.
Daily chart.Technical Overview: Market continues to consolidate within the range of 1.30 and 1.32. Wait for a breakout from the sideways market type for clearer direction.
Fundamental Overview: Despite data coming out from the UK beating estimates, the price has failed to respond. There has been a resurfacing of political tensions and Brexit negotiations resume, which may weigh on the pound.
Buy AUD/USD. MT is Bull Normal.
Daily chart.Technical Overview: The pair has continued to form a series of higher highs and higher lows. Price held above the secondary support level at 0.7135 which will provide traders with a good risk reward ratio targeting 0.74. However, throughout previous days, we have seen more downwards impulsive movement signifying a weakness in the current bull market. Will await a strong rejection candle at the secondary level before continuing to buy the AUD.
Fundamental Overview: The Reserve Bank of Australia has no plans to cut rates as the economy continues to show signs of recovery from the pandemic. It will be a quiet week ahead for Australia with US data being the main drivers of the market.