Sample Category Title
Euro Reverses Its Gains In The Asian Session
For the 24 hours to 23:00 GMT, the EUR rose 0.20% against the USD and closed at 1.1597.
In the US, data showed that, US existing home sales unexpectedly slid 0.7% to a level of 5.34 million on monthly basis in July, declining for the fourth straight month and marking its weakest pace in two years. In the prior month, existing home sales had recorded a reading of 5.38 million, while market participants had envisaged for an advance to a level of 5.40 million. On the other hand, the nation’s mortgage applications rebounded 4.2% on a weekly basis in the week ended 17 August 2018, following a drop of 2.0% in the prior week.
Separately, the Federal Reserve’s latest monetary policy meeting minutes, indicated that further gradual increases in the target range for the federal funds rate would be consistent. The officials stated that the US GDP growth would slow in the second half of 2018 but remain above potential. Further, the members pointed that ongoing global trade tensions would be the biggest threat to otherwise strong US economic growth.
In the Asian session, at GMT0300, the pair is trading at 1.1553, with the EUR trading 0.38% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.1530, and a fall through could take it to the next support level of 1.1506. The pair is expected to find its first resistance at 1.1600, and a rise through could take it to the next resistance level of 1.1646.
Moving ahead, investors will await the Markit manufacturing and services PMI for August set to release across the euro bloc. Also, the Eurozone’s consumer confidence for August due to release later in the day, will garner significant amount for trader’s attention. Later in the day, the US house price index for June along with new home sales for July and the Markit services PMI for August, will keep investors on their toes. Additionally, the US initial jobless claims will be on investor’s radar.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
Sterling Trading Lower In The Morning Session
For the 24 hours to 23:00 GMT, the GBP rose 0.10% against the USD and closed at 1.2916.
In the Asian session, at GMT0300, the pair is trading at 1.2871, with the GBP trading 0.35% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2847, and a fall through could take it to the next support level of 1.2824. The pair is expected to find its first resistance at 1.2915, and a rise through could take it to the next resistance level of 1.2960.
Trading trend in the Pound today is expected to be determined by UK’s CBI reported sales for August, slated to release in a few hours.
The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.
USD/JPY Daily Outlook
Daily Pivots: (S1) 110.15; (P) 110.39; (R1) 110.79; More...
USD/JPY's rebound from 109.76 extends higher today but it's staying below 111.42 resistance. Intraday bias remains neutral first. Price actions from 113.17 are viewed as a correction. We'd continue to expect strong support around 38.2% retracement of 104.62 to 113.17 at 109.90 to bring rebound. On the upside, above 111.42 will turn bias back to the the upside for retesting 113.17 first. However, sustained break of 109.90 will put 109.36 key support level in focus. Break of 109.36 will carry larger bearish implications.
In the bigger picture, corrective fall from 118.65 (2016 high) should have completed with three waves down to 104.62. Decisive break of 114.73 resistance will likely resume whole rally from 98.97 (2016 low) to 100% projection of 98.97 to 118.65 from 104.62 at 124.30, which is reasonably close to 125.85 (2015 high). This will stay as the preferred case as long as 109.36 support holds. However, decisive break of 109.36 will mix up the outlook again. And deeper fall should be seen back to 61.8% retracement of 104.62 to 113.17 at 107.88 and below.
Japan’s Manufacturing PMI Expanded For The 24-Consecutive Month In August
For the 24 hours to 23:00 GMT, the USD rose 0.41% against the JPY and closed at 110.55.
On the data front, Japan's flash manufacturing PMI climbed to a level of 52.5 in August, expanding for the 24th consecutive month and supported by strong domestic demand. In the prior month, the PMI recorded a reading of 52.3.
In the Asian session, at GMT0300, the pair is trading at 110.87, with the USD trading 0.29% higher against the JPY from yesterday's close.
The pair is expected to find support at 110.40, and a fall through could take it to the next support level of 109.94. The pair is expected to find its first resistance at 111.11, and a rise through could take it to the next resistance level of 111.36.
Going forward, traders will keep an eye on Japan's final leading and coincident indices, both for June, scheduled to release in a while.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Swizz Franc Trading on a weaker footing in the Asian session
For the 24 hours to 23:00 GMT, the USD declined 0.18% against the CHF and closed at 0.9827.
In the Asian session, at GMT0300, the pair is trading at 0.9849, with the USD trading 0.22% higher against the CHF from yesterday’s close.
The pair is expected to find support at 0.9820, and a fall through could take it to the next support level of 0.9791. The pair is expected to find its first resistance at 0.9866, and a rise through could take it to the next resistance level of 0.9883.
Moving ahead, investor would focus on Switzerland’s industrial production data for 2Q, slated to release in a while.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
USD/CAD Daily Outlook
Daily Pivots: (S1) 1.2975; (P) 1.3011; (R1) 1.3035; More...
A temporary low is in place at 1.2986 and intraday bias in USD/CAD is turned neutral first. At this point, another fall is mildly in favor as long as 1.3091 minor resistance holds. Break of 1.2961, and the medium term channel support will resume fall from 1.3385 and carries larger bearish implications. On the upside, above 1.3091 minor resistance will turn bias back to the upside for 1.3173 resistance. Break there will indicate completion of fall from 1.3385 and turn outlook bullish again.
In the bigger picture, as long as channel support (now at 1.2978) holds, we're holding to the bullish view. That is, fall from 1.4689 (2015 high) has completed at 1.2061, ahead of 50% retracement of 0.9406 (2011 low) to 1.4689 (2015 high) at 1.2048. Further rally should be seen for 61.8% retracement of 1.4689 to 1.2061 at 1.3685 and above. However, sustained break of the channel support will argue that rise from 1.2061 has completed. Further decline should be seen to 38.2% retracement of 1.2061 to 1.3385 at 1.2879 first. Sustained break will pave the way to 61.8% retracement at 1.2567 and below.
Canada’s Retail Sales Declined In June, At Par With Market Expectations
For the 24 hours to 23:00 GMT, the USD declined 0.36% against the CAD and closed at 1.2994.
Macroeconomic news indicated that, Canada's retail sales eased 0.2% on a monthly basis in June, in line with market expectations and compared to a revised advance of 2.2% in the prior month.
In the Asian session, at GMT0300, the pair is trading at 1.3044, with the USD trading 0.38% higher against the CAD from yesterday's close.
The pair is expected to find support at 1.3005, and a fall through could take it to the next support level of 1.2967. The pair is expected to find its first resistance at 1.3064, and a rise through could take it to the next resistance level of 1.3085.
Amid lack of economic releases in Canada today, traders would focus on global macroeconomic events for further direction.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Aussie Extends It Losses In The Morning Session
For the 24 hours to 23:00 GMT, the AUD declined 0.11% against the USD and closed at 0.7350.
LME Copper prices declined 0.4% or $25.5/MT to $6000.0/MT. Aluminium prices declined 0.1% or $2.0/MT to $2038.5/MT.
In the Asian session, at GMT0300, the pair is trading at 0.7284, with the AUD trading 0.90% lower against the USD from yesterday’s close.
The pair is expected to find support at 0.7255, and a fall through could take it to the next support level of 0.7225. The pair is expected to find its first resistance at 0.7342, and a rise through could take it to the next resistance level of 0.7399.
In absence of key economic releases in Australia today, traders would keep an eye on global macroeconomic releases for further direction.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
Gold: Yellow Metal Trading Lower In The Morning Session
For the 24 hours to 23:00 GMT, Gold marginally rose against the USD and closed at USD1202.60 per ounce.
In the Asian session, at GMT0300, the pair is trading at 1197.70, with gold trading 0.41% lower against the USD from yesterday’s close.
The pair is expected to find support at 1193.60, and a fall through could take it to the next support level of 1189.50. The pair is expected to find its first resistance at 1205.10, and a rise through could take it to the next resistance level of 1212.50.
The yellow metal is trading below its 20 Hr and 50 Hr moving averages.
Silver: White Metal Trading On Negative Footing In The Asian Session
For the 24 hours to 23:00 GMT, Silver rose 0.54% against the USD and closed at USD14.84 per ounce.
In the Asian session, at GMT0300, the pair is trading at 14.70, with silver trading 0.91% lower against the USD from yesterday’s close.
The pair is expected to find support at 14.61, and a fall through could take it to the next support level of 14.51. The pair is expected to find its first resistance at 14.88, and a rise through could take it to the next resistance level of 15.06.
The white metal is trading below its 20 Hr and 50 Hr moving averages.
