News & Research

Market Research & Info

Land Prime analyst Shadi Abdo

  • Member of The Egyptian Society of Technical Analyst
  • Head of Education department, Market Strategist, Chief Technical Analyst of Global Leading Forex Brokerage companies
  • Trained over 5000 professional trainers more than 10 years
  • BSc in Economics from Mansoura University

17 May 2017

powered by Land Prime

UK jobs report: Wednesday, 8:30. The UK unemployment rate is at 4.7%, an impressive number. However, wage growth is mediocre, 2.3% in February and is also being eroded by inflation. During the month of March, the number of jobless claims jumped by 25.5K, a worrying sign. The impact goes beyond the data: this is the last jobs report before the elections. Wages are predicted to advance to 2.4% y/y and the unemployment rate is likely to stay at 4.7%.

Oil inventories: Wednesday, 14:30. The weekly report by the EIA has gained importance after the recent drop in oil prices and the speculation about a potential extension to the OPEC non-OPEC deal. Apart from inventories of crude oil, watch out for the rising output in the US.

Japanese GDP: Wednesday, 23:50. This is the preliminary report for Q1 2017. Japan’s output tends to fluctuate, with occasional quarters of contraction. However, 2016 was a year of growth. The economy of the third-largest global economy probably expanded also in early 2017: +0.4% is forecast.

GBP
UK jobs report
USD
Oil inventories
JPY
Japanese GDP
  • EURUSD

The pair managed to breakthrough a very strong resistance level around 1.1000 along with the upside of the ascending channel shown on the chart. These breakouts may lead to further upward movements during the day that the pair may reach the level of 1.1190 (which is 61.8 Fibonacci of the movement between 23.08.2016 peak and 03.01.2017 trough).

Resistance levels: Support levels: Recommended:
▪ 1.1200
▪-1.1190
▪ 1.1250		 ▪ 1.1000
▪-1.0950
▪ 1.0900

We remain bullish as long as the pair is traded above the level of 1.1000.
  • GBPUSD

The pair is traded right below the upside of the ascending channel shown on the chart above. This is actually a bearish sign. At the same time, we found a bullish sign on a smaller time frame that may cause the pair to go up targeting the level of 1.3000. After reaching this level, we will be very close to the bearish level we mentioned above (the upside of the ascending channel).

Resistance levels: Support levels: Recommended:
▪ 1.3100
▪-1.3000
▪ --		 ▪ 1.2850
▪ 1.2800
▪ --		 We remain bearish as long as the pair is traded below the upside of the ascending channel
  • GOLD

The pair managed to break through the downside of the ascending channel shown on the chart above.  After the breakout of the downside, the pair went down that it reached the level of 1215 then it went up to retest the broken level. The process of retesting the broken level is occurring at the moment. This simply means that the pair may continue to go up to reach the level of 1250.

Resistance levels: Support levels: Recommended:
▪ 1250
▪ 1260
▪ 1270		 ▪ 1230
▪ 1220
▪ 1200		 We remain bearish as long as the pair is traded below the level the broken side of the ascending channel
  • AUDUSD

The pair is traded below a strong resistance level that could be found around 0.7450. Generally, the chart shows a very bearish trend but there is nowhere now to enter the market unless it reaches the level of 0.7450 which is a good level to go short targeting the level of 0.7400 followed by 0.7350.

Resistance levels: Support levels: Recommended:
▪ 0.7450
▪ 0.7500
▪-0.7550		 ▪ 0.7400
▪ 0.7350
▪ 0.7300		 We remain bearish as long as the pair is traded below the level of 0.7450
  • GBPJPY

As could be seen on the chart above that the pair is traded below strong resistance levels around 147.17 – 148. Therefore, we believe that the continuation of trading below these levels may open the door for further downward movements during the day that the pair may reach the level of 145 followed by 144.

Resistance levels: Support levels: Recommended:
▪ 147.17
▪ 148
▪ --

▪ 145
▪ 144
▪ 143

 We remain bearish as long as the pair is traded below the level of 148