Currencies trading idea for the coming week of 22-July-2019

EURUSD
EURUSD has been stuck in quite a tight trading range for about two weeks now. The currency pair currently sits at the support level of the range. Therefore we can expect the immediate target of the next move to be the resistance level as shown in the chart.

The indecision in the market can be attributed to two dovish central banks. The Federal Reserve is looking to cut interest rates, while the ECB is also looking for ways of easing.

GBPUSD
For GBPUSD the resistance is around 1.2580 while the support is 1.2400. The currency pair has fallen from the resistance area though not quite reaching the resistance level. Therefore the preference to trade the pair is to the downside towards the support of 1.2400. A better entry opportunity could be if the pair pulls back to retest the resistance and forms an exhaustive candle.
For all the GBP pairs, it is the politics around Brexit that has taken the centre stage at the moment. Therefore, this currency pair can be avoided as USD itself is expected to be weaker going into next week.

USDJPY
We can see a clear down trend shown by the trendline as shown on the chart. The last candle is an exhaustive bearish candle. At the same time, USD is expected to weaken overall, therefore the next target for this currency pair could be the immediate support set by the last low of 107.219. If there is a break below that, the next target is 106.811.

AUDUSD
AUDUSD has broken above the major resistance level of 0.70 last week, retested the level and then again rallied, which is a sign of a healthy rally. Now the pair is testing the broken resistance turned support of 0.7039. At this point, a supportive candle gives opportunity to buy with the target being 0.7200.


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Disclaimer: Our analysis and forecasts given on this website are just our point of view about the market. It is not a trading signal or investment advice. 

Amir
Amir is a full-time forex trader and a graduate in International Economics.

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