Weekly Market Commentary | 17.07 – 23.07

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:

• China’s GDP comes in lower than expected at 6.3% against 7.1%
• Retail sales in China, too, read lower than expected at 3.1%, as opposed to the anticipated 3.4%
• Industrial production in China rises by 4.4%, beating 2.5% increase expectations
• US Empire State Manufacturing Index to be announced, expected at -3.5%

Tuesday:

• Australia’s Monetary Policy Meeting Minutes release
• Canadian inflation data expected to come in at 0.3%
• US retail sales anticipated to rise by 0.5%

Wednesday:

• New Zealand’s inflation data expected to drop to 0.9%
• UK inflation forecast to plummet to 8.2%

Thursday:

• Australia to release job data
• US Unemployment Claims data set to be announced

Friday:

• UK retail sales expected to rise by 0.2%
• Canadian retail sales with a 0.5% anticipated increase

Setups for This Week:

NZDUSD

Primary View:

• Last week, the price managed to escape a flag pattern, which triggered a buy signal.
• The price is positioned above the significant up-trend line (green in the chart), endorsing a positive sentiment for this pair.

Alternative View:

• If the price retreats back within the flag pattern, it shall signal a sell scenario.

Gold

Primary View:

• Gold experienced a substantial rise last week due to the inverse head-and-shoulder formation and a bounce off the 38.2% Fibonacci level.
• Despite the week concluding with a minor correction, the buy signal on gold remains on.

Alternative View:

• Should the price dip below the 38.2% Fibonacci level, it will act as a strong signal to go short.

USDCAD

Primary View:

• The previous week culminated in a significant bounce off the long-term up-trend line (green). Despite the prevailing strong downtrend, this presents a compelling opportunity to go long.

Alternative View:

• A price breach of the green line would suggest an opportunity to go short in the long term.