01 March 2017

Australian GDP data: Wednesday, 0:30. The Australian economy contracted 0.5% in the third quarter contrary to estimates for a 0.2% growth. This was the first negative reading in more than five years, following a 0.5% gain in the previous quarter. However, analysts expect the economy will rebound in the coming months due to the recent rally in commodity prices. Building activity contracted 3.6% for the quarter and was the largest contributor to the decline in GDP growth. Financial and insurance services, professional scientific and technical services, rental hiring and real estate services and administrative support services also registered lower than expected growth. However agriculture showed a 7.5% gain offsetting the overall growth slump. Economists expect the Australian economy will grow by 0.7% in the fourth quarter.

Canadian rate decision: Wednesday, 15:00. The Bank of Canada kept its overnight rate target at 0.5%, due to global uncertainty, particularly in the United States. Governor Stephen Poloz said the Central Bank was concerned about the U.S. trade policy and its effects on the Canadian economy. Uncertainty remains high making it difficult for the BoC to provide economic projections. The BoC upwardly revised its 2017 GDP outlook to 2.1%, despite the strong Canadian dollar weighing on exporters as well as concerns over US trading policy.

US ISM Manufacturing PMI: Wednesday, 15:00. Economic activity in the manufacturing sector accelerated in January, rising for the 92nd consecutive month to 56 points from 54.7 in the previous month. Analysts expected a reading of 55 points. The new orders index increased by 0.1% percentage points to 60.4, while the employment Index reached 56.1, an after climbing 3.3 percentage points from December. Manufacturing PMI is expected to rise to 56.1 this time.

US Crude Oil Inventories: Wednesday, 15:30. U.S. crude stocks increased 564,000 barrels in the week to Feb. 17 missing predictions for a 3.5 million barrel rise. Crude imports, however, declined 1.4 million barrels per day, while exports increased 185,000 bpd to a record high of 1.2 million bpd. Crude oil and gasoline inventories soared to record highs in the previous week as refineries cut output amid maintenance and gasoline demand softened. Gasoline demand weakened due to the weather conditions in the West Coast.

AUD
GDP q/q
USD

President Trump Speaks
ISM Manufacturing PMI
Crude Oil Inventories
GBP
Manufacturing PMI

  • EURUSD


The pair is traded above a strong support level around 1.0522 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.0670 during the day. On the other hand, breaching the level of 1.0522 during the day opens the door for the pair for further downward movement that it may reach the level of 1.0450.

Resistance levels: Support levels: Recommended:
▪ 1.0500
▪-1.0600
▪ —
▪ 1.0450
▪ 1.0350
▪ 1.0522
We remain bearish as long as the pair is traded below the level of 1.0730.
Your capital is at risk!
  • GBPUSD


The pair is traded above a strong support level around 1.2330 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.2450 during the day. If the pair breaks through the level of 1.2330 then the way would be open for the pair to reach the level of 1.2250.

Resistance levels: Support levels: Recommended:
▪ 1.2450
▪-1.2700
▪ —
▪ 1.2370
▪ 1.2700
▪ —
We remain bullish as long as the pair is traded above the level of 1.2330
  • GOLD


The Gold is traded above a strong support level around 1242 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1260 during the day. On the other hand, breaching the level of 1242 can open the door for the pair to reach the level of 1235 during the day.

Resistance levels: Support levels: Recommended:
▪ 1260
▪ 1280
▪ 1300
▪ 1244
▪ 1242
▪ 1235
We remain bullish as long as the pair is traded above the level of $1242
  • AUDUSD


As could be seen on the chart that we still have the pair traded below the level of 0.7730 (that is a strong resistance level) so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 0.7600 during the day.

Resistance levels: Support levels: Recommended:
▪ 0.7700
▪0.7730
▪–
▪ 0.7600
▪0.7530
▪ —
We remain bearish as long as the pair is traded below the level of 0.7730
  • GBPJPY


The pair is traded below a strong resistance level around 140.50 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 139 followed by 138.60 during the day. On the other hand, breaching the level of 140.50 opens the door for the pair to reach the level of 142

Resistance levels: Support levels: Recommended:
▪ 140.50
▪ 141
▪ —
▪ 139
▪ 138.60
▪ —
We remain bearish as long as the pair is traded below the level of 140.50