Weekly Overview 21/3/2021

Weekly overview includes the movements of the major pairs with gold and oil and the areas that traders should monitor during the week with the most important economic data for this week

US Dollar Index

In the past weeks, the dollar index rose about 4.51% before the date of raising interest rates, which ranged between 0.25 basis points and 0.50 basis points, which caused the markets to price hikes ahead of schedule, supported by geopolitical news as well, and investors resorted to the dollar as a safe haven. The reason is that the dollar index fell when interest rates were raised by 0.25 basis points
Technically, the dollar index is trading in a general bullish trend and the target is at the level of 100, in the event that the level of 97.720 is breached and the four-hour candle closes below this level, we will witness a corrective decline to the level of 96.645


Gold is still trading in a general bullish trend, and the rebound from the 1882,551 level formed a positive engulfing candle that indicates the importance of this level, which represents a support line. The decline is only corrective, and the 1906.779 level represents a buying opportunity again for gold, provided that the 1882 level is maintained. 551 and not breaching it or canceling the positive scenario, the first target for gold is at the 1945,469 level
Note: Traders should monitor the negotiations between the Russian and Ukrainian President, in the event that it ends positively, we will witness a strong decline in gold

Crude Oil

Crude oil has two scenarios,
The first scenario is negative and is most likely to happen, which is a regression of oil to the level of 96 in the event that the level of 111.74 is maintained and the four-hour candle does not close above it.
The second scenario is positive, if we witness a daily closing above 111.74, this indicates a rise again to 124 levels

Euro against US Dollar

As we mentioned before that the euro represents a good investment opportunity in the medium to long term, and a breach of the 1.09404 level will be a positive signal to buy this pair, and what supports the positive scenario for the euro against the dollar is the tightening of monetary policy by the European Central Bank and the expectation of a corrective decline in the dollar index before the completion upward trend
Technically, this pair is heading to a bullish direction in the medium term and achieving new tops, the rebound from the rising trend line and not breaching it indicates the strong bullish momentum for this pair, and during its breach, 1.09012 is the last support line that the euro should maintain before changing the trend from bullish to Bearish, and the euro's target is at 1.12716

British Pound against US Dollar

This pair breached the descending channel and retested it, forming a single resistance line at 1.32146, while maintaining the resistance line, the target for this pair is at 1.30407, and in case the four-hour candle is breached and the closing is above the resistance line, the negative scenario will be canceled and it could rise. This pair is at 1.34100

US Dollar against Japanese Yen

With the decline in safe havens and the strength of the dollar, the US dollar against the Japanese yen was the most affected, which led to the pair rising about 2.75% to touch and breach the 118.705 level.
Technically, the general trend of this pair was bullish, and recently, the strength of the US dollar and the strength of the Japanese yen pushed this pair to trade within a horizontal zone between the level of 116,368 as a resistance line and the level of 114.147 as a support line, and breaching them will push the price in the direction of the breach, the retreat after the strong rise is the best To re-enter the buying opportunity, and the long-term target is the 121.703 level

Australian Dollar against Japanese Yen

The Australian dollar against the US dollar pair approached the previous top, forming a bearish divergence, and the impossibility of breaching the previous top and recording a new top. The level of decline will rise and the target will be at the level of 0.72062

New Zealand dollar against US dollar

This pair is trading at the previous high and started to fluctuate, indicating a loss of bullish momentum and the possibility of a reversal, and what supports this scenario is the formation of a bearish divergence as well.
The breach of the 0.68661 level and the closing of the 1-hour and 4-hour candlestick below it, the pair will decline to the 0.67700 level

The most important economic data for this week

Monday 21 March

US dollar: Federal Reserve Chairman Jerome Powell's speech

Tuesday 22 March

Euro: European Central Bank President Christine Lagarde's speech

April 23 March

British Pound: Consumer Price Index
US dollar: Federal Reserve Chairman Jerome Powell's speech

Thursday 24 March

Swiss franc: Swiss central bank rate decision
Euro: German Manufacturing PMI
US Dollar: Unemployment Claims Rate