Powell testimony in focus
FOMC minutes released on Wednesday showed optimism about the US economy as minutes were interpreted to be hawkish. Gold that had another go at $1351 failing once more to close down at $1328 once finding support at $1319, wherever the rising trend line sits.
EURUSD too was weak once failing to settle higher than 1.2500. Multiple failure higher than 1.2500 has currently bought sellers in control as EURUSD lost quite 130 pips last week to finish at 1.2284. Economic data’s from Europe was mixed failing to hold up EUR.
GBPUSD was struggling throughout the week on the rear of unsatisfactory jobs data and rising discord among supporters in PM may’s camp. GBPUSD concluded the week at 1.3964.
USDJPY was supported by hawkish minutes and a few shorts unreeling because it managed to climb to 107.80 wherever the falling trend line resistance established too strong for the bulls to interrupt. USDJPY eventually gave up most of the gains because it marginally closed higher for the week at 106.82.
USDCAD benefitted from a strong dollar and nervous Canadian dollar as it traded up and briefly broke the 1.2660 resistance to make a week high of 1.2758. Friday’s inflation reading offered Canadian dollar some support as USDCAD traded lower to close at 1.2625.
The big event of the week is the testimony by Fed Chair Jerome Powell. Being his first, his take on the current equity market rally and inflation reading would be of great importance.
Gold should find support at $1325 where the rising trend line support now lies. Another go at $1351 should be expected as long as the support is held.
EURUSD looks weak on the charts and test of 1.22 looks on the Card. The wider bullish picture remains strong as long as 1.22 is held. Next week is light on crucial EU economic data releases.
GBPUSD is pinned in a wedge formation with support and resistance lying at 1.3900 and 1.4050. Friday would be crucial as we have Prime Minister May and BOE governor Carney speaking. Brexit updates too need to be watched.
USDCAD looks bullish after it broke the resistance at 1.2660. Friday’s Canadian GDP and news bits about NAFTA negotiation too needs to watched out.
