Investors are provided with market outlook insights to help plan out their long term goals. Read the latest commentaries from our industry experts.
No central bank news this week but eyes will remain on US
data as the greenback weakened significantly last week. Tuesday sees the
release of Core CPI data which is forecast to come in lower at 0.2%. A lower
figure here will likely add to the USD weakness.
The Commitment of Traders report continues to highlight the commercials willingness to buy Great British Pound with the 2016 lows of 1.1900 fast approaching on the GBPUSD chart. The strength and weakness chart shows that GBP is beginning to gain some strength. The report also highlights the commercials selling Japanese Yen which could suggest the risk-on sentiment in the market could be returning in the coming weeks.
The strength and weakness table suggest that the EURO and GBP have been gaining in strength with the NZD continuing to fall. JPY and CHF remained strong and we should see this continue until the price comes into a major demand zone.
The USD Index closed significantly bearish last week from the highs. This could lead to further weakness this week with selling likely to resume on any decent rallies. The key lows of $96.00 will remain targets for short positions and should be tested as price falls.
Looking at the GBPUSD chart price it is evident that the price remains bearish however it is approaching the key 2016 lows of 1.1900. With the CoT reports highlighting a potential bullish reversal coming and these lows will be ideal to look for long positions to re-enter the market.
AUDUSD formed a bullish pin candle closing within the previous weekly candle range. This could lead to a reversal from the current lows, a break above the weekly high will give an opportunity for bullish moves into the previous structure lows.
USDCAD weekly chart suggests price is rejecting the resistance of 1.3270 closing back within the previous weekly range. If the USD continues to weaken, we could expect the price to move lower from here. A break of the current weekly candle low will be ideal in looking for short opportunities.
USDJPY is approaching the key lows of 104.70 where we could see some Yen weakness step into the market. The CoT reports show that there has been an increase in short contracts and this demand zone will be ideal for reversals.
Silver has recently re-tested the $17.00 level as the uptrend continued; now the price has found resistance we should see price reject back into the key highs of $16.60 where we expect the trend to continue. The CoT report did show that the commercials were adding to their short positions here however they haven’t continued to do that this week suggesting price could still move higher before reaching a top in the market.