Forex Daily Analysis – Last week, the main currency pairs showed mixed results. The dollar index (#DX) is keeping local minima. Additional pressure on the American currency is provided by the shutdown of the US government work. Washington said that in the near future the Senate would try to resume funding.
On Monday, the news feed will be fairly calm. We recommend paying attention to the meeting of the Eurogroup.
At 15:30 (GMT+2:00) the data on the volume of wholesale sales in Canada will occur.
On Tuesday, a key event will be the meeting of the Bank of Japan. The regulator will decide on the interest rate and report on further plans for monetary policy. It is expected that the Central Bank will keep the key interest rate at the previous level of -0.10%.
At 12:00 (GMT+2:00) we expect the economic sentiment indexes from ZEW in Germany and the Eurozone.
On Wednesday, the attention of financial market participants will be focused on the following economic reports:
– Data on the trade balance of Japan at 01:50 (GMT+2:00);
– Statistics on business activity in Germany and the Eurozone at 10:30 (GMT+2:00) and 11:00 (GMT+2:00), respectively;
– A report on the labor market in the UK at 11:30 (GMT+2:00);
– Sales in the secondary housing market in the US at 17:00 (GMT+2:00);
– Crude oil inventories in the US at 17:30 (GMT+2:00);
– The index of consumer prices of New Zealand at 23:45 (GMT+2:00).
The ECB meeting will be held on Thursday. Experts expect that the regulator will leave the key interest rates at the same level. We recommend you to pay attention to the comments and rhetoric of the representatives of the Central Bank.
Important economic reports:
– The number of initial jobless claims in the US at 15:30 (GMT+2:00).
– Statistics on retail sales in Canada at 15:30 (GMT+2:00);
– Sales of new houses in the US at 17:00 (GMT+2:00).
On Friday in the Asian trading session, we expect the Minutes of the monetary policy meeting of the Bank of Japan to appear at 01:50 (GMT+2:00).
We recommend you to pay attention to the following statistics:
– The UK GDP report at 11:30 (GMT+2:00);
– Data on durable goods orders in the US at 15:30 (GMT+2:00);
– The US GDP statistics at 15:30 (GMT+2:00);
– The inflation report in Canada at 15:30 (GMT+2:00).
Daily Pivot Point
EUR/USD Intraday: turning down.
Pivot: 1.2260
Our preference: short positions below 1.2260 with targets at 1.2195 & 1.2160 in extension.
Alternative scenario: above 1.2260 look for further upside with 1.2290 & 1.2305 as targets.
Comment: the RSI shows downside momentum.
Forex Daily Analysis
GBP/USD Intraday: the bias remains bullish.
Pivot: 1.3835
Our preference: long positions above 1.3835 with targets at 1.3915 & 1.3945 in extension.
Alternative scenario: below 1.3835 look for further downside with 1.3800 & 1.3775 as targets.
Comment: the RSI lacks downward momentum.
AUD/USD Intraday: intraday support around 0.7975.
Pivot: 0.7975
Our preference: long positions above 0.7975 with targets at 0.8020 & 0.8040 in extension.
Alternative scenario: below 0.7975 look for further downside with 0.7940 & 0.7920 as targets.
Comment: the RSI is mixed to bullish.
Gold spot Intraday: rebound expected.
Pivot: 1330.0000
Our preference: long positions above 1330.00 with targets at 1338.00 & 1340.50 in extension.
Alternative scenario: below 1330.00 look for further downside with 1325.00 & 1322.50 as targets.
Comment: a support base at 1330.00 has formed and has allowed for a temporary stabilisation.
Silver spot Intraday: limited upside.
Pivot: 16.8800
Our preference: long positions above 16.8800 with targets at 17.1300 & 17.2000 in extension.
Alternative scenario: below 16.8800 look for further downside with 16.7700 & 16.6800 as targets.
Comment: a support base at 16.8800 has formed and has allowed for a temporary stabilisation.
Crude Oil (WTI) (G18) Intraday: the downside prevails.
Pivot: 63.7500
Our preference: short positions below 63.75 with targets at 63.05 & 62.85 in extension.
Alternative scenario: above 63.75 look for further upside with 64.10 & 64.30 as targets.
Comment: as long as 63.75 is resistance, likely decline to 63.05. The prices remain capped by the falling trend line, and is likely to post new weaknesses.
Source: JustForex Broker
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Tags : ECB meeting UK GDP report
