Traders’ Gaze Fixed on Central Banks as Monday Begins Calmly

Hello traders, and welcome to another exciting week in the financial markets. This week promises to be pivotal, especially with the much-anticipated central bank decisions lining up. Although the fireworks are set to ignite from Wednesday, our Monday morning – as is typically the case – commences on a subdued note, offering no tier one data to shake things up. To add to the tranquility, Japan has opted for a day off, giving some respite to the markets.

Switching our focus to the charts, there’s a discernible trend setting the tone for the week. At the forefront are the antipodean currencies – the New Zealand dollar and Australian dollar. Exhibiting remarkable resilience, they currently rank as the strongest currencies, standing tall against the slightly weakened American dollar.

Turning our gaze to the EURUSD, last week left a definitive mark. A potent sell signal was confirmed, pointing to a protracted bearish run. Paralleling this sentiment are the Japanese yen and the American dollar against the Swiss franc – both exuding a long-term positive aura.

A little off the usual radar but worth noting is the GBPCHF. While many traders might overlook this pair, its recent shift to a sideways trend demands attention. As the new week unfurls, this currency pair finds itself grappling with a key long-term horizontal support. A successful bounce would be ideal, but a breakthrough could set the stage for a strong short position.

Indices, having grappled with a challenging Friday, might attempt some recuperation today. However, the midterm outlook is tinged with pessimism. A cursory glance at the daily charts reveals a barrage of bearish engulfing patterns – a harbinger of potentially turbulent times. Perhaps the impending US interest rate decision might throw a lifeline to the beleaguered bulls.

Rounding off with commodities, the momentum remains unabated. Gold soldiers on, powered by a successful defense of its $1,900 support mark. Oil, on the other hand, commences the week with trepidation, hovering precariously close to its long-term peaks. Yet, there’s optimism in the air, suggesting it might just clinch those highs.

Source: https://www.axiory.com/analytics/market-news/traders-gaze-fixed-on-central-banks-as-monday-begi