The Week Ahead – Central banks in focus
EURUSD awaiting interest rate decision
The euro remains pressured as the greenback looks to capitalise on the continued downturn from last month. With the Federal Reserve looking to hold its cash rate this week, the central bank will be in the spotlight again if inflation creeps higher in the next reading. Since the Bank of England is also not expected to surprise on Thursday, traders will turn their attention to the whispers of a possible recession. 1.1600 is the next resistance and 1.1520 a fresh support.
AUDUSD remains elevated
It’s the week of central bank decisions as the Reserve Bank of Australia makes its decision on Tuesday. The Aussie (AUDUSD) has been standing firm thanks to encouraging data from China, with a renewed hope that the country is on the verge of a trade deal with America. With business confidence on shaky ground, this week’s news could see the Aussie slide further into the red. 0.7080 is a key resistance and 0.6980 a critical support at the lower end of the current price channel.
SPX 500 looking for a full recovery
The S&P grinds higher as last week’s news that a peace deal is very close lifted indices across the board. However, as traders have heard this all before, there could be a slight pullback in price action if any signs of hesitation from either party develop. Investors also remain cautious as lingering concerns over the health of the economy continue to shift sentiment. 7600 is a major ceiling with 7250 the closest support.
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