Welcome to our weekly market analysis from forexcracked.com!
Here, we cover the major forex pairs, important commodities like gold, silver, and oil, and major cryptocurrencies like BTC and ETH.
This analysis focuses mainly on price action trading.
Before we continue with the analysis, if you don’t know much about trading, charts, candlesticks, risk management, or strategies, or if you want to improve your knowledge, consider reading our free forex course.
Upcoming Events for This Week
These events include macroeconomic reports, economic indicators, and, generally, what’s going on in the world.
Only the most important events are considered here. You can check the forexfactory.com for all the economic events and yahoo finance for news.
22/7/2024
There are no important events scheduled for thjs day.
23/7/2024
There are no important events scheduled for this day.
24/7/2024
09:45 ET, the Bank of Canada will announce its monetary policy update. Currently, the country’s interest rate stands at 4.75%, with expectations for a potential cut to 4.5% in this meeting. This event could cause high volatility for CAD pairs.
10:30 ET, the Bank of Canada will hold a press conference. During the Q&A session, we might receive hints about future interest rate changes, which could affect CAD pairs.
25/7/2024
8:30 ET, the US will release its Advance GDP quarter-over-quarter report. This data, reported in an annualized format (quarterly change multiplied by four), includes three versions released a month apart: Advance, Preliminary, and Final. The Advance release is the earliest and typically has the most impact.
26/7/2024
8:30 ET, the US will release its PCE Price Index month-over-month, a key inflation gauge used by the Fed. This event often brings volatility to USD pairs.
Forex Market Analysis
EURUSD:
EURUSD is currently in an uptrend, pulling back from the resistance at 1.09600 and resting near the support level of 1.08750. If the price breaks below this support, further declines to the next support level are anticipated. Conversely, a bounce from this support and a move above the resistance would indicate the uptrend is intact and continuing its course.
USDJPY:
USDJPY has broken its significant support and is now in a downtrend. On the hourly chart, there was consolidation before another drop. The next support is around the 155 level, where we might see a pause or a bounce. If this level is breached, further downside towards 152 could be expected. Conversely, a breakout above resistance would indicate potential upward momentum in the trend.
GBPUSD:
GBPUSD is in an uptrend, currently retracing from the resistance level at 1.30000 and hovering near the support at 1.29000. If the correction concludes and the price resumes its upward movement, we anticipate a reversal around this support with a break above the resistance. However, if the price breaks below this support, it could indicate either a continuation of the correction or a shift to a downtrend, leading to potential further declines.
USDCHF:
USDCHF is currently in a downtrend, having retraced from support near 0.88200 and approaching resistance at 0.89000. If the price breaks above this resistance, further upward movement towards the next resistance levels can be anticipated. However, given the bearish trend overall, we might see the price decline from this resistance and return towards 0.88200.
USDCAD:
USDCAD has broken a significant support, indicating a downtrend. However, after reaching a support level, the price has retraced and is now at the previously broken support, which is now acting as resistance. If the breakout holds true and USDCAD remains in a downtrend, we expect the price to decline from this resistance level. On the other hand, if the price breaks above this resistance and continues upward, it suggests a potential reversal in the trend to an uptrend.
AUDUSD:
AUDUSD reached resistance around 0.68000 and has since begun to decline. It broke through the support near 0.67000 and is now heading towards the 0.05800 level. Keep an eye out for any potential breakouts.
NZDUSD:
Similar to AUDUSD, NZDUSD has broken below the support at 0.60500 and is now heading towards 0.59000. There’s a support level around 0.59500 where the price may pause or pull back; if not, it could continue its downward movement. Keep an eye out for any potential breakouts.
Commodities Market Analysis
GOLD:
Gold reached a peak around 2480 before beginning to decline, breaking support levels on its way down. Currently, it has found support around the 2400 level and is consolidating. If the price breaks below this support, we anticipate further declines. Alternatively, a reversal could occur around this support, pushing the price higher. Keep an eye out for signals of both reversal and breakout.
SILVER:
Looking at silver, it’s currently at a support level of 28.500. If the price breaks below this level, we might see further declines. Conversely, the price could also rebound from this level and begin to rise. Keep an eye out for signals indicating both a potential reversal and breakout.
CRUDE OIL:
Oil is currently in a downtrend. After a correction, it encountered resistance around 88.000 and has resumed its downward movement. The price is currently just above a support level of 81. If the price breaks below this level, we anticipate further declines toward the 78 range. However, there’s also a possibility of a pullback, with a chance of a breakout. Be prepared for both scenarios.
Cryptocurrency Market Analysis
BTC:
BTC, after dropping and causing uncertainty, has finally resumed its upward momentum. Currently, the price is above 67K, and we anticipate it to continue rising further.
ETH:
ETH is currently near its support level of 3500, with the next resistance around 3680. We anticipate the price to rise toward this resistance level. If it breaks above, we expect further upward movement. Conversely, if it breaks below, the price may continue in that direction.
BNB:
BNB is also showing similar momentum, as cryptocurrencies are correlated. BNB is approaching resistance around 630.
Conclusion & Disclaimer
This analysis article isn’t about telling you when to buy or sell. It’s about teaching you how to approach the market effectively. Every day, I follow the same routine before I start trading. Here, I briefly explained the technical aspects of what’s happening and what actions I take in these situations. Your goal is to understand what I do so you can follow the same process on your own.
The market can change its behavior without notice, so it’s best to analyze it every day. The ForexCracked version covers all the important assets in details for the week in one article. Meanwhile, the xlearn version focuses more on daily analysis for day traders. If you want to follow daily analysis for Forex, US Stocks & Cryptocurrencies check out this section on xlearnonline.com
Please provide your feedback in the comment section below on how we can further improve our market analysis. Thank you.
It’s crucial to acknowledge the inherent unpredictability of financial markets. While we strive to offer informed perspectives on upcoming events and trends affecting various instruments, it’s important for readers to conduct their own analysis and exercise prudent judgment.
Encouragement of Independent Analysis
We strongly encourage readers to supplement the information presented here with their own research and analysis. Market dynamics can swiftly change due to a multitude of factors, and individual circumstances may vary. By conducting independent analysis, readers can tailor their strategies to align with their unique goals and risk tolerance.
No Certainty in Market Predictions
It’s vital to recognize that nobody possesses the ability to predict market movements with absolute certainty consistently. Market analysis serves as a tool to assess probabilities and identify potential opportunities, but it’s essential to remain cognizant of the inherent uncertainty in financial markets.
Aligning with High Probability
Rather than aiming for infallible predictions, our goal is to align with high-probability scenarios based on available information and analysis. This approach acknowledges the dynamic nature of markets while seeking to capitalize on opportunities with favorable risk-reward profiles.
Proceed with Caution
Lastly, while market analysis can offer valuable insights, it’s imperative to approach trading and investment decisions with caution. Markets can be volatile, and unforeseen events may impact asset prices unexpectedly. Exercise prudent risk management and consider seeking advice from qualified financial professionals before making any significant financial decisions.
Remember, the journey of financial analysis and investment is a continuous learning process, and embracing a disciplined approach can contribute to long-term success in navigating the complexities of global markets.
THANK YOU & HAPPY TRADING FROM FOREXCRACKED!!!
