Weekly Wrap: all eyes on GBPUSD this week.

Weekly Wrap: all eyes on GBPUSD this week.

Traders will be keeping an eye on the GBPUSD this week with the Bank of England inflation report coming out on Wednesday which may be very dovish putting more pressure on the pound sterling.

USD

  • Bank holiday (markets could be less liquid) Tues Nov 11
  • Unemployment Claims Thurs Nov 13
  • Retail Sales figures Fri Nov 14
  • Consumer Sentiment Fri Nov 14

GBP

  • Average Earnings Index Wed Nov 12
  • BOE Inflation Report and Carney speaking Wed Nov 12

EUR

  • French and German GDP Fri Nov 14

AUD

  • National Australia Bank Business Confidence Index Tues Nov 11

EURUSD

1.25 seems to be the line in the sand for the sellers with euro.  This supply level held today at the intersection of the descending sentiment line and previous support (now resistance).

Last week, sellers sold the open briefly before buyers stepped in. Mid week, sellers came in again and cracked the lows made at the open before closing back up near some intermediate resistance made during the week.

EURUSD retesting the 1.25

EURUSD retesting the 1.25

Today, the 1.25 supply zone has been tested and has held for now. The shorts have it for now but if the bulls can get price above the trend line and the 1.25, any late shorts could be punished and squeezed to the supply zone around 1.27

AUDUSD

The yearly lows looks at risk on this pair. The monthly bearish candles are longer in length and more determined compared to the bullish candles and we are back at the lows.

Looking at the longer term chart, it is within the bounds of reason that we could see 0.80 on this instrument sometime in the second quarter of 2015.

0.80 on the cards for middle of next year?

0.80 on the cards for middle of next year?

In the short term, 0.8640 is the level to watch. If price can hold above this level, buyers may push this pair to the recent supply zone of 0.8760 and the unfilled opening gap. This might be an area where shorts would consider re-loading.

Short term, 0.8640 is the level to watch

Short term, 0.8640 is the level to watch

GBPUSD

We are at a significant historical level with this pair and this week could be interesting with the BOE report out on Wednesday. Buyers have defended this level in the past and if sellers manage to break this level with any force, any subsequent retests of this level from below could be an opportunity for shorts to reload.

All eyes will be on 1.5850 this week.

All eyes on the 1.5850 level this week

All eyes on the 1.5850 level this week

BITCOIN

Bitcoin is not immune to the dollar buying with the 400 level holding for now and a bearish sentiment line allowing sellers to define their risk.

400 the line in the sand for BTCUSD?

400 the line in the sand for BTCUSD?

Any commitment in price above 400 and retests of this level may see some buyers trying to reload to squeeze those shorts and punish any short sellers who are late to the game.

If price remains below the sentiment line, the bears have the ball with Bitcoin for now.

To find out what the crowd thinks of these markets – just click on the sentiment icon on the chart in Spark Profit to get the opinion of over 100000 players from around the world.

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