It was a quiet week from the currency counter except for some movements in majors; however commodities like Gold continued to shine. We’ve given you a brief overview of the weekly movements, find out what happened this week and what to expect for the week ahead.
EUR/USD made a fresh three month’s high last week by climbing to 1.2245. However, it moved sideways for the rest of the week. Technically, the EUR/USD pair looks strong as long as it trades above 100 SMA 1.2040. Below 100 SMA, the next major support will be at 1.1880 which is 50 weekly SMA. For the long term, the bullish trend can start once it manages to cross the 1.25 level.
Last week the US Dollar Index hit a fresh three month low by breaking the important support level of $90. It has been seven straight bearish weeks without any major pullback. Major trend is down, but it might give some pullback since Stockastics is oversold on a daily chart. On a weekly basis, $89 will provide support while on the higher side, any close above $90.50 will start the upside momentum.
Prices of Gold are moving steadily throughout the month. The weak US Dollar and lower employment data from the US helped the Gold to rise further up last week. Gold has crossed 161% retracement on a weekly basis and is marching towards $1900. The next resistance for the Gold will be at $1938 which is 78.6% retracement level on a daily basis. While, in the event of any pullback, it might find major support within the $1834 area, with 61.8% retracement on a daily basis.
The contents of this article do not constitute trading advice and should be treated as general information only.
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