Canadian inflation: Friday, 12:30. The Bank of Canada intends to raise rates in October, assuming a successful NAFTA deal is struck. But Stephen Poloz and his colleagues will need data to support such a move. Headline inflation rose by 0.5% in July while Core CPI lagged behind with a more modest 0.2%. Significant inflation is needed to justify a move. Retail sales for July are published at the same time. Both headline and core sales dropped in June.
CAD
Canadian inflation
- EURUSD
Update: The breakout is confirmed. As we mentioned last week that the pair formed a head and shoulders pattern. The second was perfectly formed. We will wait for the pair to break the neck-line of the pattern. It will be confirmed with a daily close above the neck-line. In case the neck-line is broken, it is expected that the pair might continue going up to reach the level of 1.1850.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.21 ▪ 1.1850 ▪ 1.1780 |
▪ 1.15 ▪ 1.1450 ▪ 1.14 |
Waiting for the pair to break the neck-line of the head and shoulders pattern. |
- GBPUSD
Update: The pair started going down. The pair broke the resistance level of 1.32. But still traded below the level of 1.3310 which is a strong Fibonacci level (0.386). The daily chart shows that the pair is traded below a strong resistance that is 1.32. In case the pair shows up some bearish evidence below it, we can go short targeting the level of 1.28 during the week. This is conditioned by the continuation of trading below the level of 1.32.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.36 ▪ 1.32 ▪ 1.31 |
▪ ▪ 1.2650 ▪ 1.2550 |
Looking for some new evidence. |
- GOLD
Update: The pair started going down as expected. As we mentioned last week that the pair has been traded below a strong resistance level that is 1218 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1190 during the week. This is conditioned by the continuation of trading below the level of 1220.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1330 ▪ 1320 ▪ 1220 |
▪ 1200 ▪ 1190 ▪ 1180 |
We are bearish as long as the pair is traded below the level of 1220. |
- AUDUSD
Update: Waiting for bearish evidence below the downtrend line. As could be seen on the four hours chart that the pair is on its way to reach the down trendline shown on the chart in blue. If the pair reaches the downtrend line and shows up some bearish evidence, we can go short targeting the level of 0.71. In case the downtrend line is broken, then there will be another scenario
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7550 ▪ 0.7600 ▪ 0.7260 |
▪ 0.7160 ▪ 0.71 ▪ |
Waiting for the pair to reach the downtrend line. |
- GBPJPY
Update: Waiting for the pair to break the resistance level of 149.50. As could be seen on the daily chart that the pair managed to break the upside of the descending channel shown on the chart. Therefore, we are bullish as long as the pair is traded above the broken upside along with the support level of 146. First target is 149. Conditioned by the continuation of trading above the level of 146.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 156 ▪ 155 ▪ 149 |
▪ — ▪ 145 ▪ 140 |
We are bullish as long as the pair is traded above the upside of the pattern. |
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