Weekly Market Commentary | 07.07 – 13.08

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:

• Australia and Canada have holidays, resulting in potentially lower market activity.
• Switzerland will release its foreign currency reserves data.
• FOMC member Harker is scheduled to give a speech during the European session.

Tuesday:

• NAB Business Confidence from Australia will be the key data release of the day.

Wednesday:

• China’s inflation figures will be released, with a decrease of 0.5% expected.
• New Zealand’s inflation expectations will also be announced.

Thursday:

• The US will announce its inflation data, with an annual rise to 3.3% expected, up from the previous 3%.
• The weekly US Unemployment Claims report is expected to show 231,000 new claims.

Friday:

• Japan’s markets will be closed.
• The UK is expected to announce GDP figures, with a growth of 0.2% predicted.
• The US PPI report is expected to show a modest increase of 0.2%.
• The Prelim University of Michigan Consumer Sentiment index from the US is expected to come in at 71.7.

Setups for This Week:

Dow Jones

Primary view:

• • Last week’s bearish correction likely to continue.
  • Key horizontal support at 33,500 points serves as the correction target.

Alternative view:

• Limited chance for a rebound with continued bearish activity more probable.

EURGBP

Primary view:

• • Completion of inverse head and shoulders pattern.
  • Currently testing the neckline (yellow) and the long-term downtrend line (red).
  • Break above these resistance lines would offer a long-term buying opportunity.

Alternative view:

• Possibility of price bouncing off resistance, leading to a downward swing.

USDCAD

Primary view:

• • Completion of a double bottom pattern (yellow).
  • At a horizontal resistance level (blue) and below the lower line of the symmetric triangle.
  • Breakout above these two lines would suggest a strong long-term buying signal.

Alternative view:

• Potential for a selling opportunity if price bounces off these two resistances with the long-term green uptrend line as the target.

Source: https://www.axiory.com/analytics/weekly-market-commentary/weekly-market-commentary-07-07-13-08