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The week’s news will clarify the US dollar, which trades at its highest level in two years ahead of Donald Trump’s inauguration. After strong employment data, the FED will watch the CPI number, which is expected to tick higher to 2.9% year over year.

The Australian dollar, which declined against most currencies, might come back if the employment data turns favorable on Thursday. Although still in a downtrend, one particular setup favors an AUD pullback.

News To Watch

  • Tuesday: USD PPI
  • Wednesday: GBP CPI, USD CPI
  • Thursday: AUD Employment, GBP GDP, USD Retail Sales
  • Friday: GBP Retail Sales

AUD NZD

In recent weeks, the AUD has lost footing against many currencies, but it held well against the NZD. The key level to watch is around 1.1090, which has to break decisively. A close above on the daily chart would signal the price is ready to take out the stops at around 1.11800 and potentially find the strength to continue toward 1.13.

AUD NZD strength would also be a retail contrarian pick, as sentiment indicates that over 70% of traders are short.

AUD CAD 

CAD has gained a lot of ground, and the price closed below the key level of 0.88700 on the daily chart. Although a short-term pullback is possible, the downtrend remains in place as long as the price remains below 0.89840. The potential long-term target is at 0.86500

GBP SGD

GBP lost ground against SGD, breaking out of the long-term consolidation and tagging stops around 1.67. An expected pullback could provide opportunities to capitalize on continued weakness and a further decline toward 1.66.

 

  • AUD JPY:  Took out stops around 98.7 and reversed. The trend is bearish, with support around 95.5
  • AUD SGD: In an established downtrend, with no key developments.
  • CAD JPY:  In a range, with support at 108.500 and resistance at 110.
  • CHF JPY:  Reversing the trend to bearish for the short-term. Strong support is at 170.500.
  • EUR AUD:  In an uptrend. Strong support is around 1.65, while resistance sits at 1.6810.
  • EUR JPY: Closed below a key daily level of 161.65. Sustained weakness could bring the price to support at 159.800. 
  • GBP JPY: Weekly candle signals a bearish reversal. Support levels below are 190.100 and 187.800.
  • NZD JPY: Remains in a downtrend. Price flushed stops at resistance above 89.200; the next support is around 86.270.
  • SGD JPY: In a range, but short-term price action is bearish, with support around 114.500.

Disclaimer:

Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. Singapore Forex Club is not responsible for any financial decisions based on this article's contents. Readers may use this data for information and educational purposes only.

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Stjepan Kalinic

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