Look Forward to the Week’s Events

Tuesday

German consumer price index for August – expected to rise further from 7.5% to 7.8% yearly

US JOLTS job openings for July – seen slipping to 10.646 million

Wednesday

Chinese manufacturing and services PMIs for August – projected to decrease slightly

Eurozone’s HICP inflation – investors anticipate further rise to new records

US ADP employment report – likely shows 200,000 new jobs in August

Thursday

US manufacturing ISM index for the month of August – projected to slow from 52.8 to 52.0, with the employment subindex likely falling and prices paid gauge rising – a stagflation combination.

Friday

US labor market data – non-farm payrolls number expected at 285,000, down from 528,000 in July. The unemployment rate will probably stay at 3.5%.

Setups for This Week:

SP500

Primary View:

The end of last week was catastrophic for global indices.

The SP500 managed to create a Head and Shoulders pattern and on Friday, the price broke the neckline, triggering a proper sell signal.

The new week started with a really limited bounce. A further slide seems imminent.

Alternative View:

The price can rise returning to the neckline, but as for now, the mood is really negative.

AUDJPY

Primary View:

Last week, the price managed to escape to the upside from the large symmetric triangle pattern.

The new week started with a bounce of the upper line of the triangle.

As long as the price stays above the upper line, the sentiment seems positive.

Alternative View:

If the price returns inside the triangle, a major sell signal will be triggered based on the false breakout pattern.

EURJPY

Primary View:

The situation here is similar to AUDJPY but on a slightly smaller timeframe

The move to the upside is also stronger here as the price also broke a crucial horizontal resistance at 138.

Alternative View:

The price returning inside the triangle will bring a proper sell signal.