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.
The euro in a double-top pattern
The euro is showing an interesting movement today. On the H1 chart of EUR/CHF, we see that yesterday the price fell from the resistance of 1.0975 to the support of 1.0958 (17 pips down). Today, it rose back to 1.0975, forming the second peak at the same resistance level. This observation allows us to interpret this movement as a double-top pattern. Based on this, if the bears pull the price down enough to break through the support level of 1.0963 and the neckline of 1.0958, the price will be likely to drop down by another 17 pips. Otherwise, if the market makes a reversal to the upward direction, the resistance level of 1.0975 would be a mark to confirm its bullish mood.
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.