Weekly Market Commentary | 06.02 – 12.02

Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates and trading setups that will keep you up-to-date and in the know.

Monday>

– The German factory orders data come better than expected with a 3.2% rise (vs 2.1% exp)

– We are still awaiting retail sales numbers from the Eurozone and the Ivey PMI from Canada

Tuesday>

– Tuesday morning should witness RBA raising the rates by 25bp to 3.35%

– We will also get speeches from two main central bankers in Northern America: FED’s Powell and BOC’s Macklem

Wednesday>

– Wednesday will be unusually quiet. The main headline is a speech by the FOMC Members Williams, Barr and Waller.

– Wednesday is also the day to typically report the crude oil inventories

Thursday>

– This week’s Thursday will be pretty calm, too. The Monetary Policy Report Hearings from the BOE seem to be the most important news of the day

Friday>

– Friday will be the only day this week with some juice in it. Early in the morning of the European session, we shall learn the report of the GDP in the UK that is expected to come at -0.3% m/m

– We will also receive job data from the Canadian market, where the rise of the unemployment rate is expected

– The week will finish with the Prelim UoM Consumer Sentiment who is expected to come at 65

Setups for This Week:

USDJPY

Primary View:

The pair finally ended the channel-down pattern with a breakout to the upside

Apart from breaking the upper line of this formation, we also broke the horizontal resistance on the 131

As long as we stay above it, the buy signal is on

Alternative View:

USDJPY falling back inside the channel down formation would completely end the buy signal here

Dow Jones

Primary View:

Most of the leading indices broke their resistance and are in a positive territory, but not Dow Jones

Here, the price is still inside the triangle formation (red) and awaiting the breakout

A breakout to the upside would be a proper, long-term buy signal

Alternative View:

Dow Jones breaking the lower line of the triangle would be a legitimate signal to sell

Gold

Primary View:

Thursday and Friday were terrible for gold

The price is back in the channel-up pattern but the outlook is pretty gloomy

Gold breaking the lower line of the channel-up pattern would be a sell signal with the target on the 38,2% Fibo

Alternative View:

Gold defending the 23.6% Fibonacci would restore the buy signal on this metal

Source: https://www.axiory.com/analytics/weekly-market-commentary/weekly-market-commentary-06-02-12-02