Yesterday was a news-drenched day. Unemployment in Australia and the United States and the CPI in Europe added volatility to the markets. Technically, the aussie is close to the support at 0.7770, where there is a 23.6% Fibo correction. It therefore makes sense to open or hold existing longs with stop orders a bit below that level. Technically, the 9-day EMA is also being tested, which once again confirms the logic of holding and, maybe, slightly increasing longs.
Strong news on initial jobless claims in the United States and the lack of a drastic change in the Eurozone’s CPI managed to prop up the US dollar today. And, besides, the published minutes of the ECB and the Fed’s FOMC somewhat disappointed bulls trading the EUR/USD pair. On the one hand, the concerns of a number of ECB members over the strong single currency and, on the other, the desire of part of the US Open Market Committee to raise the key rate. Technically, the EUR/USD situation did not change much over the day, but here one must also take into account pressure on the greenback from political factors. As we noted yesterday, it therefore makes sense for bulls to pull out the stops and for bears to wait a while. Today Baker Hughes data on the number of drilling rigs and the speech by FOMC member Robert Kaplan may influence traders’ mood.
Trading in oil was mixed yesterday. The asset is still hanging on above $50, but technically the black gold has passed both the 9-day and 21-day EMAs. A bullish harami has formed on the candlesticks, but this indicates a possible consolidation rather than a reversal. Noteworthy among the important news that might affect the cost of oil (if, of course, we exclude the escalation of tensions over North Korea) is OPEC’s monthly petroleum market report which comes out fairly soon on September 12, 2017. We advise those who trust graphic analysis to also take a look at the long-term monthly charts. The situation resembles a bullish head and shoulders, but we would not rush things just yet.
As we already noted, on Friday the focus will be on the Canadian dollar. We are optimistic about the future of the loonie and, quite likely, the “faith in the FOMC” factor continues to play a role here. Time will tell. For now, Canada’s July inflation is predicted to be zero and 1.2% in annual terms.
Nikolay Dudchenko, exclusively for Olymp Trade
Strong news on initial jobless claims in the United States and the lack of a drastic change in the Eurozone’s CPI managed to prop up the US dollar today. And, besides, the published minutes of the ECB and the Fed’s FOMC somewhat disappointed bulls trading the EUR/USD pair. On the one hand, the concerns of a number of ECB members over the strong single currency and, on the other, the desire of part of the US Open Market Committee to raise the key rate. Technically, the EUR/USD situation did not change much over the day, but here one must also take into account pressure on the greenback from political factors. As we noted yesterday, it therefore makes sense for bulls to pull out the stops and for bears to wait a while. Today Baker Hughes data on the number of drilling rigs and the speech by FOMC member Robert Kaplan may influence traders’ mood.
Trading in oil was mixed yesterday. The asset is still hanging on above $50, but technically the black gold has passed both the 9-day and 21-day EMAs. A bullish harami has formed on the candlesticks, but this indicates a possible consolidation rather than a reversal. Noteworthy among the important news that might affect the cost of oil (if, of course, we exclude the escalation of tensions over North Korea) is OPEC’s monthly petroleum market report which comes out fairly soon on September 12, 2017. We advise those who trust graphic analysis to also take a look at the long-term monthly charts. The situation resembles a bullish head and shoulders, but we would not rush things just yet.
As we already noted, on Friday the focus will be on the Canadian dollar. We are optimistic about the future of the loonie and, quite likely, the “faith in the FOMC” factor continues to play a role here. Time will tell. For now, Canada’s July inflation is predicted to be zero and 1.2% in annual terms.
Nikolay Dudchenko, exclusively for Olymp Trade