US Durable Goods Orders: Wednesday, 12:30. Sales of durable goods reflect investment and are eyed by the Fed for future growth. Headline orders dropped by a whopping 6.8% in July, but the numbers are skewed by aircraft sales. A rise of 1.1% is estimated. Core orders rose by 0.5% and gained more attention. A more modest rise of 0.2% is forecast.
New Zealand rate decision: Wednesday, 20:00. The Reserve Bank of New Zealand is expected to leave the interest rate at 1.75% once again. The RBNZ likes to complain about the strength of the currency, and this time, the elections will have a material effect on the exchange rate, thus determining the reaction from Graeme Wheeler and his colleagues. They usually “make the trend their friend”. So, a drop in the NZD could provide an opportunity to push it even lower, while a rise in the currency would be hard to mitigate.
USD
US Durable Goods Orders
NZD
New Zealand rate decision
- EURUSD
Update: the breakout for the level of 1.1840 is confirmed so the way is open for the pair to reach 1.1650.The pair managed to breakthrough a strong support level that could be found at 1.1840 so this may open the door for the pair for further downward movement during the week that it may reach the level of 1.1650. Also, we will be waiting for the pair to confirm the breakout of the level of 1.1840 by a daily close.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.2000 ▪ 1.2100 |
▪ 1.1900 ▪-1.1850 ▪ 1.1800 |
We remain bearish as long as the pair is traded below the level of 1.1840. |
- GBPUSD
Update: the breakout of the level of 1.3450 is confirmed. Therefore, we may go short targeting the level of 1.3300 followed by 1.3200. The pair was traded in a very narrow range between the support level of 1.3450 and the resistance level of 1.3600. Today, the pair managed to breach the support level of 1.3450 but it is not confirmed yet. We will need a confirmation of the breakout that is a daily close below the level of 1.3450
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.3700 ▪ 1.3650 |
▪ 1.3450 ▪ 1.2800 ▪ 1.2700 |
We remain bullish as long as the pair is traded above the level of 1.3450. |
- GOLD
Update: we remain the same. The pair managed successfully to rebound around the level of 1290 (a strong support level) this means that the pair may continue going up to reach at least the level of 1320 followed by 1350 during the week. This conditioned by the continuation of trading above the level of 1290
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1340 ▪ 1375 |
▪ 1300 ▪ 1295 ▪ 1200 |
We remain bullish as long as the pair is traded above the level of 1290. |
- AUDUSD
Update: the pair is on its way to reach the level of 0.7800 followed by 0.7750. As we mentioned last week that the pair is traded below a strong resistance level at 0.8100 so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 0.7650 during the week. This is conditioned by the continuation of trading below the level of 0.8100.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.8100 ▪ 0.8060 |
▪ 0.7600 ▪ 0.7500 |
Expected to show bullish pressures |
- GBPJPY
As could be seen on the weekly chart that the pair is traded above a strong support level that could be found at 150 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 154 followed by 155 during the week.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 152 ▪ 151 ▪ 155 |
▪ 148 ▪ 147 |
Expected to show more bearish pressures. |
