Bill Dudley talks: Wednesday, 12:00. Dudley is, in effect, No. 2 in the Fed, as Vice Chair Stanley Fischer is stepping down. He has been quite upbeat about the economy, contrary to his previous dovish stance. Like Yellen, he will have an opportunity to comment on the inflation data.
US housing data: Wednesday, 12:30. Building permits stood at an annualized level of 1.27 million in August while housing starts lagged behind with 1.18 million. If both figures go in the same direction, the dollar is set to move. However, the figures can also go in opposite directions, offsetting each other. Building permits are projected to tick down to 1.25 million while housing starts are forecast to remain unchanged.
USD
US housing data
- EURUSD
Update: Yesterday’s trading session was bearish. More bearishness is expected. The pair has been bullish for 10 days now that it reached the level of 1.1834 (a strong resistance level) before sliding 34 pips into today’s low. As we mentioned last week that the pair could be carving a head and shoulders pattern. It will take a daily close below the level of 1.1660 to confirm the breakout of the neckline of the formation.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2000 ▪ 1.2100 ▪ 1.1840 |
▪ 1.1700 ▪-1.1650 ▪ 1.1600 |
Waiting for the pair to confirm the head and shoulders formation. |
- GBPUSD
Update: On its way to the uptrend line. The bulls have been in control for 10 days now. As we stated last week that the pair found a strong bullish base where it started its bullish rally. As for this week we believe that the pair is rangebound so there is nowhere to enter the market now. The pair may find a good entry at the resistance level of 1.3450 (this is where we can go short targeting the level of 1.3200 during the week). On the other hand, we would recommend going long in case the pair reaches the level of 1.2990 along with the uptrend line shown on red on the chart (see the chart above).
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3700 ▪ 1.3650 |
▪ 1.2990 ▪ 1.2900 ▪ 1.2800 |
Waiting for the pair to reach one the levels mentioned in the report. |
- GOLD
Update: On its way to the level of 1267. The pair was not able to hold above the level of 1300 and it went down so we expect the as long as the pair is traded below the level of 1305 we may go short targeting the level of 1267 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1305 ▪ 1300 |
▪ 1267 ▪ 1260 |
We remain bullish as long as the pair is traded above the level of 1267. |
- AUDUSD
Update: Still traded above the level of 0.7800. A daily close back above the level of 0.7800 has opened the door for the pair for further upward movement that it may reach the level of 0.7940 during the week. This is conditioned by the continuation of trading above the level of 0.7800.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.8100 ▪ 0.8060 ▪ 0.7940 |
▪ 0.7600 ▪ 0.7500 |
We remain bearish as long as the pair is traded below the level of 0.7800. |
- GBPJPY
Update: Still traded above the uptrend line. As we mentioned last week that the pair may reach the short-term uptrend line shown on the chart above. Early this week the pair could reach the uptrend line. So, will it be able to establish a base where we can go long? We will be waiting for some signals to show up above the uptrend line.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 152 ▪ 151 ▪ 155 |
▪ 148 ▪ 147 |
Expected to show more bearish pressures. |
