As certain fiat currencies weaken, troubles with oil demand, stimulus packages being discussed and gold rally halting, our team is looking at specific pairs that we think will be good to consider trading throughout the week. Here's what we're looking at:
| Bulls | Bears | |
| AUD/USD | - Analysts expect price to rise to 0.72 by the end of the year - Australia relies on gold production as gold prices pass highs | - USD will likely see more demand as long as interest rates stay above 0% - HEALS Act could prove effective in US, causing a drop in the pair - Price is showing signs of being overbought |
| EUR/USD | - Highest bullish sentiment since COVID crash - Euro preferred over the dollar as USD weakens - Investors favor EU stimulus package over US's | - The pair is running into resistance levels as bull rally takes a break - US federal interest rates expected to remain unchanged - Analysts think Euro is running out of momentum |
| CAD/JPY | - CAD's GDP m/m expected to be much higher than last month - JPY's unemployment rate expected to rise - USD weakening could stimulate oil price (Canada's economy depends on oil production) | - If oil demand continues to drop it, would hurt Canada's economy - Resistance lies around the price of 80 |
AUD/USD
Prices come back up to recent resistance levels on the daily chart. 14-Day RSI marks 70 which signifies it's overbought. Short interest sits here as price consolidates. If prices can break and close above .72, it would be a good sign for bulls, but until then, short interest remains. Gold prices show slow down in rally as AU's rally may be dwindling.
EUR/USD
EU on the hourly chart showing multiple tests on that resistance with no success. Meanwhile a wedge forms and prices get pinned between the rising trend line and 1.17430s level resistance. The rally is on pause waiting for the Fed and stimulus announcements in the coming days. Similar to AUD/USD, our sentiment remains short unless resistance is broken.
CAD/JPY
Cad Yen on the 1D chart showing some short term bullishness as price hits rising trend line. Long wicks form on the two previous candles showing indicating buying pressure that price wants to come back up to test resistance. Looking to the 200 Day Moving Average for resistance should the pair come up to this level.
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Disclaimer:
Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.
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