Forex pairs and Gold Chart analysis setups – Jun 16, 2021

GOLD

Gold is consolidating after breaking the bottom level of an uptrend line.

Gold is consolidating after breaking the bottom level of an uptrend line

Gold prices extended lower as FOMC meeting will support for US Dollar higher.

Gold prices extended lower as FOMC meeting will support for US Dollar higher min

And the US Producer price index climbed to 0.8% MoM in May than 0.6%. This indicates the factory input costs are more and output finished Goods sales at higher prices.

The Inflationary pressures on US Economy are transitory, but higher inflation reading makes the US Dollar weak.

Inflationary pressures on US Economy is transitory but higher inflation reading makes US Dollar weak min

More swelling of funds in institutions makes to sell the securities and Cash flows gets to inside.

Due to this, the FOMC meeting will decide to consume fewer asset purchases and sell some securities to made cash inflow to Banks.

USD

USDJPY moving in an Ascending Triangle pattern.

USDJPY moving in an Ascending Triangle pattern

USDCAD after breaking the Ascending Triangle top is moving now between the ascending channel range.

USDCAD after breaking the Ascending Triangle top is moving now between the ascending channel range

Fed Meeting will happen today, and the FOMC outcome will be stable, no changes in policy settings and No tapering type of discussion in this meeting.

Fed Meeting is going to happen today min

But US Dollar weakness continues against Counterparties like EUR, AUD, GBP and NZD.

According to the FED view on inflation reading, Inflation reading looks higher in the medium term only, not in the long-running view.

FED uses the Term Transitory type of inflation numbers printed in the latest month is not a consideration for stable numbers min

And due to this, FED uses the Term Transitory type of inflation numbers printed in the latest month is not a consideration for stable numbers.

FED keeps Patience until the Full economy recovered from the Pandemic crisis.

EUR

EURUSD is moving between the minor channel ranges.

EURUSD is moving between the minor channel ranges

EURAUD bounced back from the double bottom pattern and moving in a range now..

EURAUD bounced back from the double bottom pattern and moving in a range now

EURUSD climbed higher to 0.30% as correction and US Dollar in stronger pace ahead of FOMC meeting.

EURUSD climbed higher to 0.30 as correction a

And yesterday retail sales of US came in negative numbers and No reflections in US Dollars.

Next week Eurozone Inflation reading forecast to 2% is waiting on the list.

Eurozone now vaccinated with 60% of the population and easing more lockdowns and business to Re-open up with no fears of Spread of Covid-19.

Germany Industrial output reading came at a higher min

And also, Germany Industrial output reading came at a higher pace this week will boost in Euro GDP of the second quarter.

GBP

GBPUSD is moving between the channel and SR ranges.

GBPUSD is moving between the channel and SR ranges

GBPCHF is moving between the ranges now in the correction mode.

GBPCHF is moving between the ranges now in the correction mode

UK Inflation rose more than expected reading in May month,

  • Housing costs improve by 2.1% in 12 months from 1.6% in April.
  • PI rose by 2.1%, up from 1.5% in the previous month.

Rising prices for clothes, Fuel and meals, Drinks contributed to Consumer Inflation readings.

UK Inflation rose more than expected reading in May month min

UK Pound still moving in the ranging market since 1.42 level is 2018 resistance level and Trend reversal area.

So, another 6 months may be waiting for this tough resistance to broken and Correction to the 1.39 level is expected.

And if breaks today after the FOMC meeting, then the target will be 1.44-1.45. GBPUSD is in the consolidation range for the last 3 months.

CAD

GBPCAD breaks the resistance after a long time.

GBPCAD breaks the resistance after a long time

CADJPY is moving between the Descending Triangle pattern now.

CADJPY is moving between the Descending Triangle pattern now

Canadian Dollar makes lower and consolidation place in the market, after consecutive months higher reading.

Canadian Dollar makes lower and consolidation place in the market min

Now Canadian Dollar will go for correction at least 2 to 3 months, and USDCAD will swing up to 2-3% higher to 1.24-1.25 level in the same period.

And Bank of Canada already taper its asset to C$3 billion per week is stronger support for the Canadian Dollar, but Profit booking is considerable for the Last 1.5-year rally in CADJPY.

US Dollar is stronger as Domestic data of came in higher reading in every sector.

By considering this, Fed Powell &Co will decide the proper plan for reducing inflation rising numbers in the near term.

JPY

GBPJPY has formed flag and pennant patterns continuously in an uptrend.

GBPJY has formed a flag and pennant patterns continuously in an uptrend

In Today’s FOMC meeting, there will be a discussion on the current monthly purchase of $120 billion to reduce or continue with the same term of purchases.

FOMC meeting there will be a discussion on current monthly purchase min

And we can expect to continue even though Domestic data performing well.

And Inflation reading touched 5% on a monthly basis. But FED view on inflation reading is transitory and waiting in patience for another 2-3 years to rate hike and tapering.

The current stance for tapering means then inflation data came down and Crisis time purchases rate of interest will set to high.

This cross difficult involvement in tapering assets and a Rate hike is a major component for declines in the purchases of Government bonds.

And US Government made bulk purchases at lower rates and still needed purchases also required in the economy to perform well until rate hikes, and tapering bets is not possible by FED side.

AUD

AUDCHF hits the lower high zone of a downtrend line.

audchf hits the lower high zone of a downtrend line

Australian Trade minister Dan Tehan said that the Australian Government is preparing itself before going to WTO to resolve the Wine tariff issue with China.

Australian Wine tariff issue with China min

The European nation had free trade agreement that will reach a deal by this year-end as Hopes begins.

WTO action is under considerations, and Australia will make a decision very shortly.

WTO action is under considerations and Australia will make a decision very shortly min

China imposes a 218% tariff on Australian Wine for Five years, making a harder relationship with Australia.

And China will reduce tariffs on Australian wine, and WTO must help to end the higher tariffs on Australian Wine is expected.

NZD

EURNZD is moving between the Ascending Triangle pattern.

EURNZD is oving between the Ascending Triangle pattern

New Zealand, Current account deficit, widens to NZ$-2.895 billion from NZ$-2.23 billion; this reading is pressure imported Goods prices up and export values to the downside.

New Zealand First Q1 GDP reports will be scheduled tomorrow min

First Q1 GDP reports will be scheduled tomorrow and expected at 0.9% Year on Year numbers.

The largest current account deficit of New Zealand since 2008 faces some pressures in GDP print and Domestic data outcome.

One Bright reading is the decline in New Zealand Investment liability position to $160.9 billion smallest since September 2018.

House prices extreme

The surge of House prices extreme level in New Zealand.

And Reserve Bank of New Zealand Governor Adrian Orr said to report, Debt to income ratio is added to the tool kit for a Mortgage loan to value ratio restrictions to avoid different dimensions of House related risk.

RBNZ reserve bank of new zealand

DTI terms will help largely to banks from Borrowers if default status came.

And Banks will be a safeguard with this tool kit implemented as Only real workable buyers bought houses and More buyers will get neglected under the Debt-to-income ratio plan in banks rules.

Housing prices will come down soon as Buyers will get rejected in the loan approval process. This was an immediate decision taken By RBNZ to control another Housing bubble in the market.

CHF

CHFJPY is moving in an Ascending Channel.

CHFJPY is moving in an Ascending Channel

Swiss national bank monetary policy meeting will happen this week, and No changes expected from SNB.

Swiss national bank intervention in Forex min

And the SNB intervention in Forex markets is stopped, and Swiss Franc prices made flying higher.

And Eurozone inflation target of 2% will be achieved soon until ECB purchases continued until 2022 end will support the economy in more as Lower rates period.

SNB monetary policy meeting min

EURCHF will increase after 3 months consecutive declines from 1.11-1.08600 to 1.09500 in the next 2 months.

Eurozone Vaccination rate is higher than Swiss Vaccination rate is notable.

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