In today’s forex market weekly preview, the US dollar is now facing increasing selling pressure after climbing to 2-week highs on Friday.
16 March 2020 | AxiTrader – The US Dollar has come under renewed pressure after the Federal Reserve has announced it will cut the key interest rate to 0.00-0.25 % and boost its bond-buying program. Those measures come as a response to the Coronavirus outbreak. The disease continues to wreak havoc and has triggered fears that a global recession is inevitable.
Market Weekly Preview: Be on the lookout for these charts
Here are 3 charts to keep an eye on as we enter what is likely to be another highly volatile trading week:
XAUUSD has bounced off $1500 support and given the broad risk aversion in global markets. However, demand is likely to increase in the short-term. The pair will find immediate resistance at the 38.2 % Fibo of the March decline, followed by the 50 % Fibo around $1604. Furthermore, should XAUUSD break above the psychological resistance level of $1600 could trigger momentum buying, and help it recover towards $1650.
USOIL is unlikely to recover in the near-term. While demand will decline further, OPEC members, led by Saudi-Arabia are boosting production. Traders are keeping a close eye on the $30 support level. A clear break below could pave the way for a retracement towards the March 9 low around $27.30.
GBPUSD recovered slightly, and the next major level to watch to the upside is 1.2485. However, should the currency pair overcome this hurdle, a short squeeze might follow pushing Cable towards the 200 DMA (currently around 1.27). Conversely, the pair will find immediate support at 1.2245/50, followed by the October 19 low at 1.2190.
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