Forex Weekly Technical Outlook on 29 August – 2 September 2016
This Week’s Technical Pairs: EURUSD, GBPUSD, AUDUSD, NZDUSD, & USDJPY
EURUSD tried to constant higher and fairly collapsed in a late dollar rally. The twist of the month appears inflation and inflation data amid other numbers. Euro-zone PMIs came out somewhat under the line of expectations, and also the IFO survey cut down short of estimates. This was a bright drag on the euro. In the US, new home sales were supportive and also durable goods orders taken out the anticipations. On the other hand, GDP did not gives a surprise & fed chairman Yellen stayed cautious in Jackson Hole but her bolstering case for a rate hike and after hawkish description from Vice Chair Fischer surely gave the dollar a big boost, sending the pair under the level of 1.12 in the ending hours of the week.
Euro-dollar slipped from the last week highs of 1.1375 levels and extended its drops additional down. Still, following a brush with support, the pair led once again. As traders appear from the vacations, the ECB is on development to add more easing although the Fed is slightly less dovish than natural. This should force the pair much lower. EURUSD stands Bearish this week.
GBPUSD placed some gains for a 2nd week in a row, ending week at 1.3122 levels. This week’s significant news is Manufacturing & Construction PMI reports. In the US, new home sales taken out the anticipations & durable goods reports also wipe out their assessment. On the other hand, GDP matched the estimates and Janet Yellen stand cautious in Jackson Hole. Expectation is high before of a busy month that appears both the BoE & the Fed Reserve making demanding decisions.
GBPUSD unlocked the week at 1.3061 & rapidly reached a low of 1.3033 levels, testing the support levels at 1.3053. The pair was unfair until last week’s Friday, when the pound mounted to a high of 1.3279 levels, ahead twisting the directions and finishing the week at 1.3122 levels. The Fed stays divided over a rate rise, but a December move is usually on the table. British figures have been surprisingly solid since Brexit, but burden stands regarding the strength of the UK economy, and it’s arguable if Q3 data will sustain to look string. GBPUSD remains Neutral.
AUDUSD posted little bit losses for a 2nd week in a row, as the pair ended at 0.7542 levels. There are totally ten events this week. In the US, new home sales beat forecasts and durable goods reports also beat their estimations. On the second side, GDP matched the expectations and Janet Yellen stayed cautious in Jackson Hole. Expectation is high before of a busy month that features both central banks making demanding decisions.
AUDUSD unlocked the week at 0.7605 levels. The pair had an unfair week until last week Friday, when the pair mounted to a high of 0.7692 levels. AUDUSD after that twisted directions & fell sharply to a low of 0.7536 levels late in the week, as support held hard at 0.7513 levels. AUDUSD finished the week at 0.7542 levels. The Fed is somewhat less dovish than natural and a December rate hike is usually on the table. Weak Australian figures might raise speculation that the RBA will make once again rate cut, and such emotions might weigh on the Aussie. AUDUSD remains Bearish.
The kiwi dollars try to touch new highs and had an attempt, driving just a bit higher. The break is real or not? There are three events are on the scheduled this week. New Zealand saw a trade balance shortfall of 433 million, worse than forecast. This weighed on the New Zealand dollar. In the US, new home sales wipe out expectations. The different messages in Jackson Hole begin a wobble, but the kiwi dollar handled to force through and touch higher floor. Although there are some reasons to like the New Zealand economy, the pair tries to rise and might stay balanced once again. NZDUSD remains Neutral.
The Japanese yen reversed movements previous week, as USDJPY mounted 120 points. The pair ended at 101.78 levels. There are 9 events this week for this pair. In the US, new home sales beat forecasts and durable goods reports also taken out their expectations. Preliminary GDP matched the estimates although Janet Yellen stands cautious in Jackson Hole. In Japan, deflation sustains to hamper the economy, as Tokyo Core CPI posted an 8th straight loss.
Technically, USDJPY unlocked the week at 100.55levels & reached a low of 99.91 levels, testing the support levels at 99.98 mentioned earlier week. The pair posted solid gains, reaching a high of 101.94 levels. USDJPY finished the week at 101.78 levels. The Fed is reveling cautious, but a December rate hike stands a strong possibility. If the BoJ stays on the sidelines & themes from additional easing, the yen might post some gains & drives nearly to the round level of 100. USDJPY pair stays Neutral.