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Charts of the Week: Pressure on GBP is increasing; USDJPY attempting to clear major resistance

Market Analysis /
09 Jul 2019

The pressure on Cable is increasing amid growing uncertainties around Brexit and renewed Dollar strength post-NFP. Traders are keeping an eye on the 1.2420 support level now, which is also near the 76.8 % Fibo of the Oct 16-Aug 18 rally. A clear break below that level could be seen as confirmation that the downtrend is resuming, and bears would likely aim for 1.1830 support as next major target. To the topside, the key levels to watch are 1.2630 and 1.2790.

GBPUSD
GBPUSD

USDJPY has been stuck in a relatively tight range in recent weeks. Geopolitical tensions and concerns about the on-going trade war have kept the Japanese Yen in demand. However, the currency pair bounced off the recent low after the US and China have resumed their trade talks and the strong US employment numbers are giving it an additional boost. Traders are now watching the key resistance area between 108.75 and 109. USD/JPY has been unable to clear it multiple times, so a breakout could potentially give it a decent boost.

USDJPY
USDJPY

The GER30 is struggling to maintain momentum, but as long as the support level at 12.450 points remains intact, the bulls remain in control. The Daily RSI is showing that the index is not yet in overbought territory, which may indicate that is has some more room to the upside. Key resistance is seen at 12.665 points.

GER30
GER30

XAUSD has entered a phase of consolidation following its impressive rally in June. Gold bulls need the support level at $1381 to hold, otherwise there might be further position covering. To the topside, resistance is seen at $1423, followed by the big $1438 level, where Gold already failed twice in the past three weeks.

XAUUSD
XAUUSD

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

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