The Reserve Bank of Australia Monetary Policy Meeting Minutes will be featured on Tuesday. Traders will be looking for clues that could help them determine the frequency of future rate cuts by policymakers.
Investing.com - This week all eyes will be on the Federal Reserve as investors wait for fresh insights on how it may respond to growing fears of a recession after the Treasury yield curve inverted. The Fed will hold its annual gathering in Jackson Hole later in the week, where Chairman Jerome Powell is to deliver what will be a closely watched speech Friday. It will publish the minutes of its July meeting on Wednesday.
Based on Friday’s price action and the close at $1523.60, the direction of the December Comex gold futures market on Monday is likely to be determined by trader reaction to the 50% level at $1517.50.
Based on Friday’s price action and the close at 1.1090, the direction of the EUR/USD on Monday is likely to be determined by trader reaction to the short-term Fibonacci level at 1.1112.
Based on last week’s price action and the close at 106.323, the direction of the USD/JPY on Monday is likely to be determined by trader reaction to the minor pivot at 106.013.
Based on last week’s price action and the close at .6425, the direction of the NZD/USD on Monday is likely to be determined by trader reaction to the pivot at .6483.
The minor range is .6677 to .6821. Its 50% level or pivot at .6749 is controlling the minor direction of the AUD/USD. Holding above this level is helping to generate a slight upside bias.
Based on the early price action and the current price at 1.1100, the direction of the EUR/USD into the close is likely to be determined by the short-term Fibonacci level at 1.1112.
In the USD Index, the bulls continued to take over the bears even today. Interim, rising odds for a no-deal Brexit was making the Cable traders upset.
Gold markets rallied again during the week, but quite frankly have underperformed later in the week. At this point, there is a bit of a shooting star for the week, and this suggests that perhaps a little bit of a pullback is coming. This however doesn’t mean that I’m looking to sell gold.
The US dollar has formed a positive candle for the week, but as you can see we have been all over the place. At this point in time I believe that the ¥107 level has proven itself to be massive resistance.
The British pound bounced during the week against the US dollar and what would have been a bit of a reprieve after a nasty selloff. That being said, there is a large, round, psychologically significant figure that has come into play as well.
The British pound rallied a bit during the week and reached towards the ¥130 level before rolling over slightly on Friday. Ultimately though, this is a market that is very negative and I think the sellers will continue to come back in.
The Euro initially tried to rally during the beginning of the week but we then broke down significantly to reach towards the 1.10 EUR level underneath. This is a very negative looking candle stick and it could lead to much more.
The Australian dollar has chop around during the week, showing signs of exhaustion, as the Australian dollar of course continues to suffer at the hands of the US/China trade war which seems to only be getting worse.
Gold markets pulled back slightly during the trading session on Friday as perhaps a bit of profit taking has come into the marketplace. Ultimately, the market is still bullish though, so I think it’s only a matter time before we rally.
The US dollar rallied during the trading session on Friday to show signs of life again against the Japanese yen in a bit of a “risk on” move, but ultimately there is a significant amount of resistance above that should continue to be an issue.
The British pound rallied significantly during the trading session on Friday, reaching into the previous consolidation area as we head towards the weekend.
The British pound rallied during the Friday session to reach towards a higher level. At this point, I believe that the market is simply doing a bit of short covering going into the weekend as we never know what the next announcement coming from China or the United States will be.
The Euro broke down significantly during the trading session on Friday, slicing through the 1.11 EUR level. This of course is a very negative turn of events as we start racing towards the 1.10 EUR level.
The Australian dollar tried to rally during the trading session on Friday again but continues to find sellers near the 0.68 handle. As we continue to consolidate, the market is trying to figure out whether or not we are going to be able to continue to see risk.