In the world of forex trading, the week of July 12-17, 2026, promises to be a volatile one, with key levels and market sentiment playing pivotal roles. As an expert analyst, I'll delve into the fundamental analysis and market sentiment that shaped last week's trades, and then explore the upcoming week's forecast, offering a unique perspective on the key pairs and indices that are set to dominate the market. Last week's trades, as outlined in the source material, were a mix of long and short positions, with the USD/JPY and EUR/USD currency pairs taking center stage. The USD/JPY produced a gain of 0.21%, while the EUR/USD gained 0.16%, resulting in a total gain of 0.37% or 0.19% per asset. The FOMC meeting minutes, US ISM Services PMI, Reserve Bank of New Zealand policy meeting, and Canadian unemployment rate & employment change were the key drivers of market sentiment. The Federal Reserve's minutes revealed a slight hawkish tilt on interest rates, while the RBNZ's hawkish stance sent the Kiwi higher. The market also grappled with the deteriorating ceasefire between the USA and Iran, which affected crude oil prices. Looking ahead, the week of July 13-17, 2026, is relatively light in terms of economic data releases, but it includes significant data points such as US CPI, US PPI, Fed Chair Warsh's testimony, Bank of Canada policy meeting, and UK GDP. The US Dollar Index, USD/JPY, EUR/USD, S&P 500 Index, Gold, and WTI Oil Futures are the key pairs and indices that will be in focus. The US Dollar Index, after printing an inside doji candlestick, is poised to break above the key resistance level at 101.39, signaling a bullish trend. The USD/JPY, despite reaching a new 39-year high, is now in a bearish phase due to higher volatility. The EUR/USD, after a brief bearish breakdown, has recovered and is now in a short position, but I'm not very hopeful about this trade. The S&P 500 Index, on the other hand, is showing bullish signs, with a strong candlestick and a meaningful lower wick. Gold, after a bearish candlestick, is showing initial signs of a potential change in trend, but a decisive break of the descending trend line is needed before entering a new long position. WTI Oil Futures, after reaching key support at $67.11, are poised to trade higher due to the deteriorating ceasefire between the USA and Iran. In conclusion, the week of July 12-17, 2026, is set to be a volatile one, with key levels and market sentiment playing pivotal roles. As an expert analyst, I've offered a unique perspective on the key pairs and indices that are set to dominate the market, and I'm confident that the best trades for the week will be long of the USD/JPY and short of the EUR/USD. However, it's important to note that the market is dynamic, and traders should always conduct their own research and analysis before making any trading decisions.
