30 August 2019

Euro-zone CPI: Friday, 9:00. The Consumer Price Index is going nowhere fast in the old continent. Subdued levels of inflation are behind the European Central Bank’s desire to reduce interest rates. Headline CPI rose by 1.1% in July and will likely remain around these levels in the preliminary read for August. Core CPI disappointed with 0.9% last month and a repeat of a sub-1% figure may weigh on the euro.

US Core PCE: Friday, 12:30. The Personal Consumption Expenditures is the Fed’s preferred measure of inflation and uses a different formula than the Consumer Price Index report (released earlier). After Core CPI surprised with 2.2% year on year in July, we may see Core PCE accelerating from 1.6% to 1.7%. The monthly figure has risen by 0.2% in the past three months.

Canadian GDP: Friday, 12:30. Canada publishes its GDP figures on a monthly basis but the upcoming release for June concludes the second quarter and has greater importance than usual. The Canadian economy has outperformed some of its peers in recent months. Can this continue? After experiencing a 0.2% expansion in May, a more moderate growth rate may be seen in June.

 

 

USD
US Core PCE

EUR
Euro-zone CPI

CAD
Canadian GDP

  • EURUSD

Update: Still waiting for some bullish evidence. As could be seen on the chart above that the pair is traded above a strong support level that is 1.1030. Therefore, we are bullish as long as the pair is traded above it. Our first target is 1.1170

 

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: We remain bullish. As could be seen on the chart above 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: A correction to the level of 1525 is expected. The chart above shows that the pair has made a new peak. This could mean that the pair is about to correct as a result of the new high. We can wait for the pair to reach the support level of 1490 then we can go long targeting the level of 1540 in case the pair shows up some bullish evidence above the support level mentioned before.

 

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

Update: We remain the same. The daily timeframe shows 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: We remain the same. As could be seen on the chart above that the pair should go down to reach the support level of 126.68. In case this happens, we will be waiting for some bullish evidence to show up then we can go long targeting the level of 131 during the week.

 

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

 

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