Global Market Snapshot 16th June 2025

In the early hours of Friday, Israel launched airstrikes targeting multiple key military and nuclear sites within Iran, aiming to cripple the country’s senior military command. In swift retaliation, Iran unleashed a large-scale missile and drone attack on Israel, causing a dramatic escalation in tensions that sent shockwaves through global financial markets.

This new wave of conflict added to existing volatility fueled by the recent downgrade of U.S. credit ratings, growing concerns over economic slowdown, and intensifying global trade frictions. Looking ahead to this week, while the U.S. has not yet directly intervened, the fragile nature of the situation has raised the stakes significantly. If Iran expands its attacks to include U.S. military bases, America may be forced to respond, which could spiral the Middle East into broader chaos. This looming risk is likely to heighten global demand for safe-haven assets and increase market uncertainty in the near term.

Weekly Technical Forecast

EUR/USD
The euro reached a high of 1.1628 last week before pulling back.

• Trend Outlook: Neutral
  
• Upside: A break above 1.1628 would suggest a resumption of the uptrend from 1.0176, with a target near 1.1700.
  
• Downside: A drop below the key 1.1370 support level would confirm a near-term top and shift the trend bearish, signaling deeper correction risks.
  

USD/JPY
After a slight pullback, USD/JPY entered a consolidation phase with no strong directional bias.

• Trend Outlook: Neutral
  
• Downside: Key support lies at 141.95 — a break below could revive the downtrend from 148.64 and aim toward the 139.86 low.
  
• Upside: A move above 146.26 would confirm a bullish reversal.
  

GBP/USD
The British pound rose to 1.3632 before a swift pullback, remaining within a choppy trading range.

• Trend Outlook: Neutral
  
• Downside: Support is at 1.3413 — holding this level could preserve upward momentum. A break below would imply a short-term top, targeting 1.3249.
  
• Upside: A breakout above 1.3632 would resume the broader uptrend from 1.2098.

USD/CHF
The dollar extended its decline from 0.8475 but rebounded after hitting 0.8054.

• Trend Outlook: Neutral
  
• Upside: Resistance stands at 0.8248 — a break above would signal a potential trend reversal.
  
• Downside: A drop below 0.8054 would confirm continued downside momentum.
  

AUD/USD
AUD/USD experienced sharp volatility, rallying to 0.6545 before retreating to 0.6455 — suggesting a possible short-term top.

• Trend Outlook: Neutral
  
• Upside: A sustained break above 0.6545 would open the door to further gains toward 0.6685.
  
• Downside: A drop below 0.6455 would turn the trend bearish, with the next target at 0.6354.

USD/CAD
The pair extended its decline from the 1.4794 high and fell below the key 1.3633 support.

• Trend Outlook: Bearish
  
• Downside: Next support lies at 1.3410 — if breached, the downtrend could extend toward 1.3170.
  
• Upside: Resistance is at 1.3728 — a rebound above this level would suggest a shift to consolidation, easing short-term downside pressure.