03 September 2019

UK parliament battles Brexit: From Tuesday. The House of Commons returns after the summer break to a shortened session after Johnson’s dramatic announcement of its suspension – or “prorogation” – from the second week of September until October 14. The opposition parties will try to bring forward legislation to block leaving the EU without a deal – and the government will fight back. Another option is to bring the government down via a vote of no confidence (VONC) – but the fractured opposition has yet to agree on who will lead a caretaker government. The battle will also rage outside parliament. Two UK courts will hear urgent appeals that will try to undo the suspension of parliament. Negotiations continue between EU and UK officials, with special British enjoy David Frost scheduled for more meetings. Brussels wants to hear fresh proposals from the UK about the controversial Irish backstop.

Australian rate decision: Tuesday, 4:30. The Reserve Bank of Australia has cut interest rates twice in recent months – after standing pat for over two years. The RBA is expected to leave the Cash Rate unchanged at 1% this time, keeping its powder dry as the domestic labor market is still doing well.

US ISM Manufacturing PMI: Tuesday, 14:00. This forward-looking survey of the US manufacturing sector has been showing signs of a slowdown – with a score of 51.2 points in July. The same score is expected now. The indicator also serves as a hint toward the all-important jobs report later in the week.

 

 

AUD
Australian rate decision

GBP
UK parliament battles Brexit

USD
US ISM Manufacturing PMI

  • EURUSD

The chart above shows that the pair is traded below a strong resistance level that is 1.1030. Therefore, we are bearish as long as the pair is traded below it. Our first target 1.0850.

 

Resistance levels: Support levels: Recommended:
▪ 1.1500
▪ 1.1450
▪ 1.12
▪ –
▪ –
▪ 1.1030
We are bearish as long as the pair is traded below the level of 1.1030.
  • GBPUSD

The chart above shows that the pair is traded above a strong support level that is 1.20. Therefore, we are bullish as long as the pair is traded above it. Our first target is 1.21. Conditioned by the continuation of trading above the level of 1.20.

 

Resistance levels: Support levels: Recommended:
▪ 1.36
▪ 1.3310
▪ 1.2550
▪ –
▪ –
▪ 1.20
We are bullish as long as the pair is traded above the level of 1.20.
  • GOLD

As could be seen on the chart above that the pair is on its way to reach a strong resistance area located between 1549 – 1554. So, we will be waiting for the pair to reach this area, then in case it shows up some bearish evidence, we can go long targeting the level of 1530.

 

Resistance levels: Support levels: Recommended:
▪ 1550
▪ 1540
▪ 1490
▪ 1260
▪ 1265
Waiting for the pair to reach the support level of 1555.
  • AUDUSD

As could be seen on the chart above that the pair is traded above a strong support level that is 0.6680. We also find a strong resistance level at 0.6827. If the pair managed to break through the resistance level, we can go long targeting the level of 0.70 during the week.

 

Resistance levels: Support levels: Recommended:
▪ 0.7550
▪ 0.7600
▪ 0.7000
▪ 0.6680
▪ 0.6650
▪ –
Waiting for the confirmation
  • GBPJPY

The chart above shows that the pair is traded above a strong support level that is 126.60. In case it shows up some bullish evidence, we can go long targeting the level of 130 during the week.

 

Resistance levels: Support levels: Recommended:
▪ 156
▪ 155
▪ 141
▪ 126.68
▪ 126.50
▪ 126
Waiting for some confirmations.

 

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