Home Daily Analysis Forex Market Overview Daily FX Brief, Aug 30 – Top Trade Setups In Forex, Eyes...

Daily FX Brief, Aug 30 – Top Trade Setups In Forex, Eyes on Canadian GDP Figures! 

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On Friday, the U.S. dollar was higher following the gains that came from the U.S. GDP figures, which slightly better than economists forecast. However, the U.S. economic growth, which slowed as expected and comments from China, helped ease trade war tensions.

Safe-haven appeal eased after the Chinese officials confirmed on Thursday that they are working with the U.S. to schedule talks in September. However, the remarks have disappointed to stop the latest series of U.S. tariffs on Chinese goods from being forced over the weekend.

Meanwhile, the U.S. GDP for the second-quarter was adjusted lower to 2%, as anticipated. The data validates that the U.S. economy remains stable even in the light of trade uncertainty. The Federal Reserve is anticipated to cut rates by 25 basis points in September to boost the economy and to fight trade risk.

Economic Events to Watch Today

Let’s took at these fundamentals…

 


EUR/USD – Daily Analysis

The EUR/USD currency pair flashing red and showing a 0.28% drop on the opening price of 1.1075 marked on 1 August. If the EUR/USD currency pair continues to touch the bearish track till today’s New York close, so then the pair will mark the 2nd straight monthly decline. Such as, the pair dropped by 2.58% in July.

Moreover, the German data is scheduled at 06:00 GMT is expected to represent the consumer spending, while represented by retail sales, dropped 1% month by month in July, having increased by 3.5% in the month of June.

An economic slowdown is already hurting at the German economy door, due to declines in the exports. These slowdown fears would be supported if the retail sales release below forecast.

Therefore, the EUR/USD pair could close up with a higher monthly loss that the 0.28% drop seen at press time.


On the other hand, the EUR currency could close on a flat-to-positive note if the German retail sales and the Eurozone consumer prices index for the August hit forecast.

Daily Support and Resistance

S3 1.0961

S2 1.1013

S1 1.1035

Pivot Point 1.1065

R1 1.1087

R2 1.1116

R3 1.1168

EUR/USD – Trading Tips

So far, the EUR/USD has traded precisely in line with our forecasts. A follow-through weakness below the 1.1075 horizontal support has extended the sell-off until our target level of 1.1040, and now, the market is likely to head for 1.1010. 

Therefore, consider staying bullish above 1.1065 to target 1.1110, whereas selling can be seen below 1.1065 until 1.1010. 


USD/CAD – Daily Analysis

USD/CAD exhibited slight movement last week, but the pair tested the 1.33 line. Last week was a bit busy for the Loonie. Manufacturing Sales decreased by 1.2% in May, the second decline in two months. On the inflation side, CPI bounced with an addition of 0.5% in July, handily surpassing the forecast of 0.1%. Core CPI, which eliminates the most active items, which include CPI, posted an accretion of 0.3%. 

Canadian GDP  

Canada announces its GDP numbers every month, but the forthcoming release for June concludes the second quarter and has greater weight than usual. It’s scheduled at 12:30 GMT today. 

The Canadian economy has beaten some of its peers in fresh months. Can this last? After undergoing a 0.2% expansion in May, a further moderate growth rate may be observed in June.

On the technical side, the USD/CAD has formed an ascending triangle pattern which is providing a solid resistance around 1.3336. Below this, we may see a sell-off in USD/CAD. But the bullish breakout can trigger sharp buying until 1.3399. 


On the lower side, support stays around 1.3280 and 1.3240. The EMA’s are a bit confusing now as the market is lacking a clear trend.

Daily Support and Resistance

R3: 1.3382

R2: 1.3337

R1: 1.3313

Pivot Point 1.3293

S1: 1.3269

S2: 1.3248

S3: 1.3204

USD/CAD – Trading Tips

Consider staying bullish above 1.3280 to target 1.3330, and in case of a bullish breakout, we can hold the position until 1.3370 at least.  


GBP/USD – Daily Analysis

Today in the early Asian market, the GBP/USD currency pair continues to hit the bearish track due to British political rage. The GBP/USD pair traders shrug-off the United Kingdom Prime ministers willingness to continue biweekly Brexit discussions with the European Union between broad political uncertainty at home.

Even if the United Kingdom PM Boris Johnsons Chief Brexit leaders failed to push the Brexit matter while turning back from the European Union. The tory leader vows two times in week meeting amid European Union and the United Kingdom policymakers to build a routine of discussions regarding Brexit. 

Though, the Cable traders mostly ignored the news and carry previous pessimism forward as more than 150 cross-party Members of the Parliaments (MPs) prepare to hold multiple meetings before the UK Houses resume working from next week.


On another side, the United States 2nd estimate of the 2nd quarter (Q2) 2019 Gross Domestic Product (GDP), Personal Consumer Expenditure Prices and Pending Home Sales data. The estimates suggest a soft 2.0% annualised GDP versus 2.1% with housing market data expected to flash no growth against 2.8% previous increase.

Daily Support and Resistance

R3: 1.2317

R2: 1.2256

R1: 1.222

Pivot Point 1.2196

S1: 1.2159

S2: 1.2136

S3: 1.2075

GBP/USD – Trading Tips

 Today the GBP/USD is mostly trading sideways but above the 1.21750 level. It’s a very crucial level as it can bring a bullish reversal in GBPUSD until 1.2240 and 1.2277. Whereas, a bearish breakout of this level can extend bearish rally until 1.2134.

Consider staying bullish above 1.21750 to target 1.222 and 1.2256. On the lower side, short selling can be done under 1.21750 until 1.209.

All the best!

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