The USD climbed against other major currencies mainly due to the rise in treasury yields and a weaker Euro which boosted the dollar index. The USD’s rise happened despite a negative Non-Farm Payroll (NFP) which would normally push the USD lower.

Thanks to the USD’s rise, gold dropped around 7% over the last week.

Meanwhile, Bitcoin, the world’s largest cryptocurrency, surpassed 40,000 USD for the first time; just weeks after passing another major milestone.

The Week Ahead:

USD

Consumer Price Index (CPI) data will be released on Wednesday. The data is expected to be at 1.6% and if the actual data is more than the expected 1.6%, then the USD could appreciate.

AUD

On Monday morning, retail sales data will be released. The data is expected to be at 7% and if the actual value is more than 7%, we expect the AUD to appreciate.

GBP

On Monday, the Bank of England (BoE) Governor speech will be aired and we can expect some huge volatility on GBP pairs.

US Indices

The S&P 500 has broken all time high and reached the 3830 level. The next potential resistance is near 4000 and all hopes are for it to hit that round magic figure soon.

Gold & Silver

Gold lost around 7% of its value last week and dropped 125 USD in the last week.

The current support is at 1850 USD and we can expect further bearishness due to the USD gaining value in the near term.

Setups for this week:

EURAUD

Primary View:

  1. The immediate resistance is seen near 1.58856
  2. The immediate support is seen near 1.56839
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 1.58856
  5. The target could be 1.56839

Alternative View:

  1. If the price moves above 1.58856, we may see further upside movement.

USDCAD

 Primary View:

  1. The immediate resistance is seen near 1.27515
  2. The immediate support is seen near 1.26478
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 1.27515
  5. The target could be 1.26478 and 1.26358

Alternative View:

  1. If the price moves above 1.27515, we may see further upside movement

EURUSD

Primary View:

  1. The immediate resistance is seen near 1.22853
  2. The immediate support is 1.21313
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 1.22853
  5. The target could be 1.21313

Alternative View:

  1. If the price moves above 1.22853, we may see further upside movement
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About Author

Mithun Girishan

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

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