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 22
Key events ahead:
Speech by the BOJ Governor Haruhiko Kuroda – 18:00 MT time
- At the end of last week, the British tanker was seized by Iranian forces. It has pushed oil prices higher since the beginning of the trading session.
On H4, WTI oil gapped up to the 200-period SMA at $56.27. At the moment, the price for WTI crude is trying to break the $56.87 level. If this level is broken, the next resistance will lie at $57.28. In case of a reversal, pay attention to the support level at $56.11. To restore the downtrend, the price for WTI will need to break the $56.11 level and the next support level at $55.55. After that, WTI can retest the lows of July 19 at $55.
- The price for Brent has risen, too. During the early hours of the European trading session, it tested the $63.92 level above the 200-period SMA on the 4-hour chart. If the price for crude manages to break this level, it will signal the further rise towards the next resistance level at $64.45. In case of the breakout, pay attention to the $64.74 level. If bulls are unable to hold the pressure near the $63.92 level, the chance of the fall downwards to the $62.95 level will increase after the breakout of $63.76. The next key level will be placed at $62.42.
The news connected with the tensions in the Middle East will remain a hot topic for oil prices, so don’t miss the headlines.
Note, that you need to choose WTI-19U and BRN-19U to trade oil in MT4 trading system.
- In the UK, tomorrow the Conservative party will choose the next Prime Minister between Boris Johnson and Jeremy Hunt. Mr. Johnson remains a frontrunner, therefore his comments tend to affect the GBP the most. On Sunday, he said that the free trade deal could be possible to avoid the Northern Irish backstop, which is the most problematic part of the Theresa May's agreement. According to his words, the technology could solve this problem. The interview by Mr. Johnson was not that inspiring for the GBP bulls as the cable retested the support at 1.2480 after the start of the European trading session. After the break of this level, the next support levels will lie at 1.2449 and 1.2422. If the British pound is supported, GBP/USD will retest the resistance at 1.2504. The next resistance will lie at 1.2520. If the pair rises higher, the retest of the downtrend’s border at 1.2537 will be likely.
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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.