China’s precision trade war confusion and fear tariff hits were clocked perfectly to make Trump seem bad before the G-7 and to steal some of the Jackson Hole thunder. Nevertheless, as usual, it was Trump’ twitter hurricane that stole the show.
The investors are accustomed to harsh assaults on Jay Powell, but similarly depicting President Xi an opponent of the U.S. with the same brushstroke transmitted shockwaves into global capital markets. It was Trump’s extreme invasion that sent the dollar plunging as it threw more fuel on the currency war debate.
With President Trump’s latest tweets articulating like situations are about to re-escalate significantly, no one wanted to be caught short USD, Fixed Income or Gold heading into a weekend fraught with the potential G-7 headline risk.
Economic Calendar – Core Durable Goods Orders & G7 In Focus
BTC/USD – Daily Forecast
BTC/USD – Daily Technical Levels
Pivot Point 10305.46
Technically, the BTC/USD is facing double bottom support around 9,780. BTC has already completed correction until 10,200, and now chances of a bullish breakout look dominant. Closing of more candles above 10,200, will trigger buying until 10,700. Closing of candles below 9,780 can lead BTC/USD towards 9,400.
EUR/USD – Sideways Channel Breakout
The EUR/USD ended the week up by 0.49% to $1.1144. Technically, long-standing weekly demand at 1.1119-1.1295 remains in a fragile state and signals downside risk over the coming weeks. The RSI and stochastics have crossed over 50 marks, displaying strong bullish interest. The major downside began as counterpart Sterling surged amid positive Brexit updates. Anyways, the economic calendar for Eurozone remained positive on the backdrop of upbeat economic data releases.
EUR/USD – Daily Technical Levels
Pivot Point 1.1116
EUR/USD – Daily Forecast
Today, if the EUR/USD prices manage to stay strong beyond 1.1177, 50% Fibonacci retracement of 1.1221 and August 06 high near 1.1251 will please buyers.
On the downside, 1.1113/10 including August 19-22 tops, holds the keys to pair’s further declines to last week’s low near 1.1050 and then to the monthly bottom surrounding 1.1027.
GBP/USD – U.S. China Trade War Shakes the Market
On Monday, the initial response to the US-China trade-war drove GBP/USD during the Asain session. Bulls seem to step back as the quote retraces to 1.2268 during the Asian session on Monday.
Having declared fresh tariffs on each others’ products, the US and China resumed concerns of global economic retardation due to the trade war between the world’s largest economies. As a result, the US Dollar (USD) collapsed across the board on Friday.
At the moment, the overbought Sterling is likely to retrace back up to 1.2250, the 38.2% Fibonacci retracement level. While a sustained rise beyond 1.2300 becomes necessary for buyers to target July 17 low of 1.2382, August 06 high near 1.2210 will act as immediate support.
GBP/USD – Daily Technical Levels
Pivot Point 1.2261
GBP/USD – Daily Forecast
I will be looking to stay bullish above 1.2261 with a target of 1.2335 and 1.2365 on the upper side.
All the best!