Weekly Technical Analysis For August 26th to 30th, 2019

All Eyes Will Be On US GDP And Eurozone CPI This Week


The US dollar dropped sharply last Friday after Federal Reserve Chairman Jerome Powell's speech at the Fed’s Jackson Hole summit.

Powell said the central bank would keep an eye on the economy and act as needed. Powell added that the central bank is at an unprecedented place as it tries to set monetary policy to help the economy overcome the tensions caused by the U.S.-China trade war. He seemed to push back against pressure to cut rates aggressively.

US President Trump has escalated the US-China trade war in a materially significant way. Trump announced an additional 5% duty on $550 billion in Chinese imports. The latest escalation in the trade war is likely to dominate in the upcoming week.

Keep your eye on US GDP Growth this week. The US second-quarter gross domestic product on Thursday, which is expected to see a growth of 2.0%, slowing from the previous estimate of 2.1%.

We will also get reports on Durable Goods Orders, Consumer Confidence, Pending Home Sales and the PCE Price Index in the upcoming week.

US Durable goods orders will be released on Monday. Excluding transportation in the meantime are expected to ease to 0.1% in July from 1.0% the previous month. A better than expected results will support DXY and bond yields in the US.

In the Eurozone, Focus on CPI inflation figures for August on Friday. The consensus forecast is that the report will show consumer prices stayed 1.0%, but remaining short of the European Central Bank's target of just below 2%.

The EURUSD pair jumped up above the 1.1103 daily level last Friday. As long as the price stays above 1.1103 on a daily basis, the upward momentum may continue and the daily resistance level can be found at 1.1219. On the other hand, if the price moves down 1.1103, we will see 1.0980 as the next daily support level.

Support : 1.1103 - 1.0980 - 1.0837

Resistance : 1.1219 - 1.1285 - 1.1355


The Sterling gained value versus the US Dollar last week. In the event that the upward movement continues, we will see 1.2395 as a key resistance level. On the other hand, if the selling pressure continues, we will follow 1.1979 as a daily support level.
Support: 1.1979
Resistance: 1.2395 - 1.2528 - 1.2607

The USDJPY pair found sellers from the daily resistance level and then dropped the main support level of 105.18 last Friday. In order for the downward movement to continue, it needs to break down and stay below 105.18 on a daily basis. Should this occur, we will see 103.08. Otherwise, if the pair moves up, the daily resistance level can be seen at 106.72.

Support : 105.18 - 103.08 - 100.96

Resistance : 106.72 - 107.70 - 108.49


The Gold Price closed last week just above the 1512 main level. As long as the yellow metal price stays above 1512 on a four hourly basis. the upward movement is most likely dominate. At this point, the key resistance level can be found at 1547. Otherwise, If the price breaks down below 1512, the daily support level will be at 1483.
Support : 1512 - 1483 - 1451
Resistance: 1547 - 1575

25 Aug 19 (Sun)

06:47 pm

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