Weekly Overview 18/7/2022

US Dollar Index

After the release of inflation data last week, and the consumer price index recording 9.1% higher than expectations, this index rose to surpass the 109 level, to open trading this week with a decline of about 0.57%, erasing more than half of its gains achieved last week. The target is still at The level of 109.750 in the long term and on the daily frame, but the possibility of a corrective decline in the short term is very high, and traders should monitor the level of 107.275 in the event that it breaks down and closes below it on the four-hour frame.
The first target is at the level of 106,145
The second target is at the level of 105.035
The third goal is at the level of 103.800

Gold

Gold is trading in a downtrend, recording lower bottoms than each other, and now gold is in front of two scenarios
The first scenario, which is the closest because of the trend, goes back to the levels of 1735,658 and 1740.171. There is an opportunity to decline again. The first target is at the level of 1697.288 and the second target is located at the level of 1676.042, but on the condition that the 1745.932 level is not breached and the closing above it on the four-frame Hours, and in the event of a breach, we will have a change in direction from bearish to bullish
The second scenario, breaching the level of 1697.288 and closing a four-hour and daily candle below this level, the gold target will be at the level of 1676.042

Crude Oil

Crude oil is trading in a bearish direction, the level of 98.40 represents an important point for the decline of crude oil again, and the target is at the level of 87.34
To maintain the negative scenario on oil, not to breach and close a candle on the four-hour frame above the 102.75 level, and if there is a closing above this level, oil will rise to the levels of 108.68 and 108.66

Euro against US Dollar

We are two days away from the ECB rate decision on July 21, and the most important question is how much will the ECB raise interest rates? 25 basis points as expected, won't it surprise the markets and raise interest rates by 75 basis points?
Technically, the euro has maintained the level of 1 and will not break it until now and record a bottom below it on the daily chart. Breaking the 1.01900 level will open the way for more rise for the euro against the dollar to levels of 1.04114 and recording a bottom below level 1. We will have a decline for this pair to levels of 0.98659

British pound against the US dollar

The pair is trading near the 1.19672 level, which represents a pivotal point on the four-hour chart
In the event that it breaks upwards and closes an hourly candle above it, we will have a change in direction from bearish to bullish, and the next target will be at the level of 1.20576, i.e. the red line, and in case of maintaining it and forming a negative pattern, it will be a good opportunity to decline again and the target is at the level of 1.17700

US Dollar against Canadian Dollar

With the dollar index rising last week, the pair recorded a new high above 1.30756, which was a resistance line
Recording this top supports the bullish trend. The decline is corrective, and the 1.29046 level represents a buying opportunity for this pair, provided that the 1.28198 level is not breached to maintain the bullish trend. The target is at 1.31500

Australian Dollar against US Dollar

This pair is still trading in a general bearish direction, and the rise is only corrective, and the maximum expected level for the correction is at the level of 0.68772, in the event that it breaks upwards and closes the four-hour candle above it on the four-hour frame first and the daily frame secondly as a confirmatory signal, the negative scenario will be canceled, but in time The current level is still 0.66185, above the target for this pair

New Zealand Dollar against US Dollar

The pair bounced from 0.60823 level, which represents a support line, forming a positive pattern called the hammer candle, followed by a positive candle as a confirmation signal for the previous candle. Also, the CPI was released in New Zealand this morning, where it recorded a high rate of 1.7%, which will positively affect the New Zealand dollar

The most important economic data for this week

Tuesday 19 July

Australian dollar: Monetary Policy Committee meeting minutes
Euro: Annual CPI
British Pound: a speech from the Governor of the Bank of England

Wednesday 20 July

British Pound: Annual CPI
Canadian Dollar: Monthly CPI

Thursday July 21

Japanese Yen: BoJ interest rate decision
Euro: European Central Bank rate decision

Friday July 22

Euro: German Manufacturing and Services PMI
US Dollar: preliminary reading of the services and manufacturing PMI