Aussie Hangs Near 3-Week Highs
Matt Simpson | Aug 28, 2014 03:54AM ET
UP NEXT:
- EUR: With ECB now not expected to act next week with extra stimulus, EURUSD may continue to rebound from the lows. Considering this we could assume that even mediocre news from Europe could help EURUSD rebound from the lows with less effort.
- US: Core PCE is widely regarded as the 'real' inflation gauge used bythe FED so could end up being the headline figure if it comes in or above 2%. GDP has high expectation at 4% so any shortfall here could also help USD retrace further across the majors board. Employment and Housing is unlikely to be the main driver tonight, but if if we see it back up inflation and growth data we should be presented with cleaner trends.
TECHNICAL ANALYSIS:
AUD/USD: Hangs near 3-week highs
I suspect that US data will deliver tonight and to bring downwards pressure upon AUDUSD. However with Europe and London due to open we do run the risk of further highs, as they absorb good CAPEX data and buy before the US data dump tonight.
0.937 is the 3-week high with a break above here targeting 0.9380 and 0.9340. Positive data from US should see AUDUSD back below 0.937.
GBP/USD: Approaches potential sell-zone
Get The News You Want
Gold remains within a clearly bearish channel and there are obvious zones of resistance to sell into, should we be presented with signs of weakness around these levels.
Cable is currently enjoying a retracement from the lows, but whilst we remain within the bearish channel then bearish setups at resistance is preferred.
A break out of the bullish channel may provide near-term long positions, but there are plenty of levels of resistance which could be used as target, so try not to outstay your welcome trading against the trend.
Gold: $1292 is the line in the sand
$1292 is a pivotal S/R level which was also the high from the Shooting Star Reversal. Yesterday was an Inside Day to suggest a hesitation to retest these highs but at time of writing we are close to breaching the high from the Inside Day. What would be nice to see is for yesterday's high to hold - then we can assume the Shooting Star Reversal was a swing high, and to seek a short position down to $1274. A break below here opens up $1259.
The counter-analysis is to seek bullish setups above $1292 to target $1300-$1302.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.