Are you ready to begin the new trading week?

Read the weekly market outlook by the industry experts to see what you can expect, enhance your trading strategies and get a head start.

Last week, the dollar index (#DX) showed weak dynamics.

The US government shutdown put pressure on the US currency.

So, the government has not worked from December 22 due to disagreements concerning the wall on the border with Mexico.

The members of the UK Parliament rejected the Brexit deal proposed by Theresa May.

Then members of the House of Commons of the UK Parliament expressed confidence in Theresa May.

The issue concerning Brexit is still unresolved.

In the upcoming trading week, we recommend paying attention to the following macroeconomic events.

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Monday, January 21st

On Monday, the news feed will be fairly calm. The US financial markets will be closed due to the Martin Luther King Day.

At 04:00 (GMT+2:00), data on China’s GDP will be published.

Tuesday, January 22nd

On Tuesday, the news feed will be full of events:

  • Data on the UK labor market at 11:30 (GMT+2:00);
  • ZEW economic sentiment index in Germany at 12:00 (GMT+2:00);
  • Existing home sales in the US at 17:00 (GMT+2:00);
  • Consumer price index in New Zealand at 23:45 (GMT+2:00).

Wednesday, January 23rd

On Wednesday, the Bank of Japan monetary policy statement and the Bank of Japan outlook report will be published. Also, the Bank of Japan will decide on the interest rate.

At 15:30 (GMT+2:00) the core retail sales index will be published in Canada.

Thursday, January 24th

On Thursday, the following data will be published:

  • Data on the labor market in Australia at 02:30 (GMT+2:00);
  • German manufacturing PMI at 10:30 (GMT+2:00);
  • ECB interest rate decision at 14:45 (GMT+2:00);
  • Crude oil inventories in the US at 18:00 (GMT+2:00).

Friday, January 25th

On Friday, the trading week will end with the publication of important economic reports:

  • German IFO business climate index at 11:00 (GMT+2:00);
  • Core durable goods orders in the US at 15:30 (GMT+2:00);
  • US Baker Hughes oil rig count at 20:00 (GMT+2:00).

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Technical Market Outlook on Major currencies

EURUSD stagnation continues as price is now re-entering the bearish channel, following a false break last week. The local bullish channel bottom should provide support, ahead of the structural low at 1.1217. A break of 1.1569 is needed to confirm a bullish shift.

Support: 1.1217
Resistance: 1.1569

Gold prices are now turning lower after completing the ABCD symmetry pattern last week. A retest of the bullish trend line is now first support, while below there and test of price swing highs at 1243.90 offers structural support.

Support: 1243.90
Resistance: 1298.29

AUDUSD saw a quiet week, remaining within the prior week’s range. The bearish trend line from 2018 is just above the market ahead of structural resistance at the .7393 level.

Support: 0.7021
Resistance: 0.7393

USDJPY is currently challenging structural resistance at the 109.77 – 110.13 level which is holding for now. Above here, there is a further ledge of structural resistance at the 111.36 – 111.69 level.

Support: 105.02 – 104.62
Resistance: 109.77 – 110.13

GBPUSD – After testing the bearish channel top last week, GBPUSD was rejected. Bears will be looking for a fuller reversal this week though there is plenty of event risk which could skew price action.

Support: 1.2479
Resistance: 1.3304

Dow Jones – A combination of optimism around the US/China trade talks and diminished Fed rate hike expectations has kept risk sentiment buoyant recently with investors hoping to keep buying equities.