Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
Market updates on July 10
Key events ahead:
BOC rate statement – 17:00 MT
The bank won’t change its rate, that is why pay attention to its tone
Testimony by the Fed chair – 17:00 MT
More hints on the expected rate cut will weaken the USD
FOMC meeting minutes – 21:00 MT
Less dovish insights will bring positive momentum to the USD
· GBP/USD has continued to move within the downward trading channel on H4. If the British pound is supported today, the pair will break the 1.2459 level. After that, the rise above the 1.2476 level seems possible. The next key level for bulls will be placed at 1.2521. From the downside, the first support lies at 1.2439, the next one – at 1.2379.
· EUR/USD has been knocking the resistance at 1.1217 on H4. If this level is broken, the further rise will be limited by the 1.1232 level. The next resistance will lie at 1.1246. If the USD gets stronger today, the pair will fall below the 1.12 level which is correlated with the long-term trendline and target the next support at 1.1187. After that, the next key level in focus of bears will be placed at 1.1178.
· USD/CAD has been awaiting the central bank’s decision and testimony by the Fed chair. The pair has been trading within a narrow range on H4. Hawkish comments for the CAD will pull the pair below the 1.3119 level. The next support level will lie at 1.3104. After the breakout, the pair may fall below the 50-period SMA and target the 1.3084 level. On the other hand, strong USD will push the pair above the 1.3132 level. The next resistance levels will lie at 1.3146 and 1.3158. There is a possibility for the pair to complete the formation of the double bottom pattern if the pair manages to break the 1.3132 and 1.3146 levels.
· During the Asian trading session, the NZD/USD pair has tested the 0.6567 level. There was no clear reason behind this sellout. At the moment, the pair is trying to recover. On H4, it is moving towards the 50% Fibo above the 200-period SMA. If it manages to stick above this level, the rise will continue until the 0.6618 level will be reached. The support levels from the downside are 0.6581 (61.8% Fibo) and 0.6567.
· USD/JPY has been trading within the uptrend on H4. If the USD is supported today, the pair will break the resistance at 109. The next resistance will lie at 109.21. If the Fed chair provides dovish comments, the fall below the 108.71 level will be inevitable. The next support will lie at 108.51.
Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.