Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Market updates on August 21
Key events ahead:
Canadian CPI – 15:30 MT (12:30 GMT) time;
Crude oil inventories – 17:30 MT (14:30 GMT) time;
FOMC meeting minutes – 21:00 MT (18:00 GMT) time.
- USD/CAD has been moving down. The first support for the pair will lie at 1.33. If the Canadian dollar is supported by the higher-than-expected CPI data, the chance of the fall towards the 50-period SMA at 1.3276 on H4 will increase. In case of a weaker figures of CPI, the pair may reverse towards the resistance at 1.3338.
- On the H4, we can see that EUR/USD has been consolidating after the rise above the 1.1088 level. If the FOMC minutes are more dovish than the market expects, the pair will rise higher to the 1.1106-1.1114 levels. In case of a strong US dollar, the pair will fall to the support at 1.1088. The next support will lie at 1.1075.
- The crude oil’s prices are awaiting the time when the level of oil inventories will be published. The price of WTI is currently trading near the 200-period SMA at $56.45 on the 4-hour chart. If this level is broken, the next resistance will lie at $56.72. After that, pay attention to the $56.94 level. If the number of barrels is bigger, that the expectations, the price of WTI will fall towards the support at $55.9. The next support will lie at $55.2 (100-period SMA).
- Brent is testing the highs above the 100-period SMA at $60.4 on the 4-hour chart. If the current resistance is broken, the next key level in bull’s focus will lie at $61.41. From the downside, keep an eye on the support level at $59.53. After the breakout, the further fall will be limited by the 68.91 level.
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.