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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

26 July 2017

powered by Land Prime

 

 

Australian CPI: Wednesday, 1:30. Australia published official inflation data only once per quarter, making every release more significant. This one is of special importance, just before the RBA decision which could see a rate hike, given the latest minutes. Both headline and the “trimmed mean” inflation measures increased by 0.5% back in Q1 2017. Headline inflation si expected to rise 0.4% q/q while core inflaiton is predicted to hold onto the same pace of 0.5%.

UK GDP: Wednesday, 8:30. Growth rates in the second half of 2016, right after the EU Referendum, remained robust. Things deteriorated in 2017 with a significant slowdown to a final rate of only 0.2% q/q. Signs for Q2 haven’t been promising. Will we see contraction this time? This is not expected. A higher growth rate of 0.3% is forecast.

US New Home Sales: Wednesday, 14:00. Just before the Fed makes its decision, it will get an interesting indicator. Sales of new homes are correlated with overall growth in the economy. The month of May saw an accelerated level of 610K. A small increase to 615K is predicted.

Fed decision: Wednesday, 18:00. Is low inflation still transitory? This is the main question that investors will want to hear answers to. In the previous rate decision, the Fed raised interest rates to 1-1.25% as expected and sounded confident about the economy. Fed Chair Janet Yellen dismissed the drop in core CPI as related to one-off factors such as prescription drugs and wireless charges. Since then, inflation remained subdued. No change is expected this time and we will not get new forecasts nor a presser by the Fed Chair. The FOMC is expected to begin reducing its balance sheet in September, at a snail’s pace and to raise rates in December, with doubts about the latter creeping in. Markets will be analyzing every word in the statement to understand where the Fed is going. Note that the Fed will probably have seen the GDP data at its meeting.


AUD
Australian CPI

GBP
UK GDP

  • EURUSD


Update: we remain bullish as the pair is still traded above the level of 1.1540. As could be seen on the chart above that the pair is traded right above a strong support level that could be found around the level of 1.1540 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.1800 followed by 1.1900. On the other hand, breaching the level of 1.1540 would open the door for further downward movements during the week that the pair may reach the level of 1.1450.



Resistance levels: Support levels: Recommended:
▪ 1.1900
▪ 1.1800
▪ 		 ▪ 1.1540
▪-1.1250
▪ 1.1200

We remain bullish as long as the pair is traded above the level of 1.1540.
  • GBPUSD



Update: still traded below the level of 1.3125. As could be seen on the chart above that the pair is traded right below a strong resistance level that could be found around 1.3125 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.3000 followed by 1.2900 during the week. On the other hand, breaching the level of 1.3125 will open the door for further upward movement during the week.

 

Resistance levels: Support levels: Recommended:
▪ 1.3125
▪ 1.3200
▪ 1.3300

 ▪ 1.2900
▪ 1.2800
▪ --

We remain bearish as long as the pair is traded below the level of 1.3125
  • GOLD

 

Update: still traded above the level of 1240. Last week, the pair managed to break through a strong resistance level that could be found around 1240 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1265 followed by 1280.


Resistance levels: Support levels: Recommended:
▪ 1270
▪ 1265		 ▪ 1220
▪ 1210
▪ 1200

We remain bullish as long as the pair is traded above the level of 1240
  • AUDUSD


Update: the pair has started going down. As could be seen on the chart above that the pair is about to reach a strong resistance level that could be found around 0.8000. So, we will be waiting for the pair to reach that level then we will have to watch how the pair will react to the resistance level of 0.8000.

Resistance levels: Support levels: Recommended:
▪ 0.8000
▪ 		 ▪ 0.7700
▪ 0.7600
▪ 0.7500

Waiting for the pair to reach the level of 0.8000.
  • GBPJPY


Update: we remain the same. As could be seen on the chart above that the pair is about to reach a strong support level which is the up trendline shown in red on the chart. So, we will be waiting for the pair to reach the up trendline then a pullback is expected if the pair shows some positive factors.

 

Resistance levels: Support levels: Recommended:
▪ 148
▪ 147.95
▪ 

▪ 145
▪ 144
▪ 143

Waiting for the pair to reach the up trendline.