23 August 2019

Jerome Powell speaks Friday, 14:00. While the FOMC minutes may be dismissed by some as stale, the all-important speech by the Fed Chair is certainly up-to-date. Powell talks at Jackson Hole, Wyoming, at an annual event that has yielded substantial market movements in past editions. The most important question on investors minds is: will the Fed cut interest rates in September? In July’s decision, Powell reiterated that the rate reduction is only an “insurance cut” and not the beginning of a cycle. However, global markets have struggled since then, the yield curve has shown signs of a recession, and other countries reported economic weakness. The US dollar may suffer if he hints of a rate cut on September 18th and will rise if he dismisses such an option. Powell is unlikely to be explicit, but markets will examine every word and create an instant narrative.

 

 

USD
Jerome Powell speaks

  • EURUSD

The daily timeframe shows that the pair is about to reach a strong support level that is 1.1030. We are looking forward to going long just in case the pair shows up some bullish evidence above this level then we can go long targeting the level 1.12

 

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

Update: The pair started going upwards. The chart above shows that the pair is traded above a strong support level that is 1.2010. So, we are bullish as long as the pair is traded above it. Our first target us 1.24.

 

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

Update: Still waiting for the pair to reach the support level. The gold is facing a strong support level that could be found at 1478. We will be waiting for the pair to reach that level then we can go long targeting the level of 1530. This is conditioned by the continuation of trading above the level of 1478.

 

Resistance levels: Support levels: Recommended:
▪ 1520
▪ 1510
▪ 1474
▪ 1260
▪ 1265
Waiting for the pair to reach the support level of 1474.
  • AUDUSD

Update: We remain the same. As could be on the daily timeframe 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

Update: No changes. The chart above shows that the pair is traded above a strong support level that is 126.65. But we will be waiting for a retest for this level so we can go long. Let us wait for the pair to reach it again.

 

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

 

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