Forex Trading Library

The Week Ahead – Corrections and Rejections

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AUDUSD on a slippery slopeAUDUSD chart showing decline amid RBA stance and pressure from copper and iron ore prices

The Australian dollar continues to slide after hitting its lofty peak at 0.6700. With the RBA keeping its rate unchanged at 4.35%, they also confirmed that getting to their inflation target would not be easy. In doing so, they did not rule anything out, something that the Fed panel suggested, with inflation remaining sticky. With the country’s main exports suffering slightly, with copper and iron ore prices down, this slump could continue. The pair drifts towards 0.6550, and 0.6700 is the first resistance to lift.

SPX 500 takes a break
SPX 500 chart displaying breather after recent slide, with resistance at 5250 and support at 5100.

The S&P 500 extended its slide in recent sessions as price action fell from its record high. PCE data failed to lift the mood, as the Fed hoped another round of progressive data would make their next move much more manageable. The Fed’s preferred inflation path could cause a shift in market sentiment, as there is no clear sight of whether inflation is cooling down or staying hot. 5250 is the resistance to break, with 5100 an essential support.

UKOIL slips over worrying demand
UKOIL chart showing slip on demand concerns, influenced by copper and iron, key support at 80.00.

Brent struggled to halt the bear rally as the demand outlook for the rest of the year remains uncertain. This comes after a surprise jump in gasoline and distillate fuel stockpiles. Slower manufacturing activity in China, the world’s biggest oil importer, has put a question mark on demand. With OPEC+ seemingly calling the shots on the next step for Oil, the likelihood is that we could see the downturn continue. 80.00 is critical support, and 82.40 is the closest hurdle.

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