The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
Market updates on August 19
There were no major moves during the Asian trading session, however, we have some events today, which may affect the sentiment in the market. Of course, we are talking about the US-China trade dispute. During the New York trading session, the US trade representatives will decide on whether to continue to allow Huawei Technologies to buy supplies from American companies. After US President Donald Trump called Huawei a “national security threat”, it increased concerns that the license of the Chinese company won’t be extended. If these concerns are confirmed, the market will be hit by the risk aversion.
- AUD/USD has been consolidating above the 50-period SMA on H4. During the European trading session, the price inched lower to the support at 0.6766. In case of the risk-off sentiment, the pair will break the 0.6766 level and target the next support at 0.6752. If bears manage to break this level, the further fall will be limited by the 0.6735 level. Alternatively, if the risk environment in the market is positive, the aussie will rise to the resistance level at 0.6783-0.6787. After the breakout of this zone, pay attention to the 0.6795 level. The next resistance will lie at 0.6804.
- USD/JPY has tested the resistance at 106.62 on H4. If this level is broken, the next resistance level will lie at 106.74. After the breakout of that level, pay attention to the 106.95-107.05. From the downside, the level at 106.29 will be in focus if the risk sentiment goes down. The next support will be placed at the 50-period SMA (105.96). RSI is moving close to the overbought zone. If it leaves this zone, it may signal a reversal.
- Gold is testing lower levels. At the moment it is moving towards the support at $1,495. In case of a breakout, pay attention to the next support at $1,473. From the upside, the first resistance will lie at $1,526. After that, reaching the $1,544 level will be possible.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!