Daily FX Analysis, Aug 19 –Major Trade Setups & EU CPI In The Limelight!

The summer calm will extend into this week as economic events will remain sparse. Nevertheless, meeting minutes from the central bank and the annual conference of central bankers at the Jackson Hole Economic Symposium should produce loads of headlines ahead of proposed policy easings in September. Besides, the trade and geopolitical tensions will also come to the fore as world leaders attend a G7 summit in France. Bitcoin (BTC/USD) has restored the psychologically level $10,000 whole figure level (as part of its ongoing 2-month consolidation) after some profit-taking during the previous week. Whereas the buyers see BTC/USD recapitulating an up channel. Bulls are also suggested to closely monitor Ripple (XRP/USD) and Ethereum (ETH/USD) as these seem to reclaim (after breaking last week) major prior support at 0.3 and 200 respectively. Economic Calendar – Eurozone’s Inflation Report In Focus   EUR/USD – Inflation Figures Set to Drive Price Action One of the most important fundamental today is the Eurozone’s July inflation figures which are due to kick the week off. Excluding any deviation from prelim numbers, the focus will be on the headline CPI figure. Later, the investors focus will shift to August prelim private sector PMI numbers due out on Thursday. Expect the German manufacturing PMI and the Eurozone’s composite PMI to be the key drivers. Moreover, the Eurozone’s service sector activity will need to extend support, though. Moderate growth in services and anticipate risk aversion to impact. The single currency hasn’t moved much as the EUR/USD pair continues to trade

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Daily FX Analysis, Aug 16 – Major Trade Setups & Economic Events!

On Friday, the U.S. dollar index experienced gains following a surge in U.S. retail sales eased concerns about the world’s top economy. Previously, the greenback was on track for a weekly gain versus safe-haven currencies such as the Japanese yen and the Swiss franc, pointing to some respite for frayed nerves following fears of recession and rallies in Hong Kong rattling financial markets. With that, one this is clear; the market is trading risk-off sentiment and investors are looking to park their investments into the non-risky or safe-haven assets such as gold, silver, and Japanese yen while sell-off is experienced in stock markets. Bitcoin, on the other hand, traded yesterday upwards and moved to $10,407, representing a 0.82% price increase on the day. Bitcoin has consolidated from just under $10,000 to over $12,000 this month and had most recently been on a downward streak. BTCUSD continues to hold below the strong resistance level of 10,400, currently dropping to near $10,000. Yesterday’s move looks like a lower’s high. Therefore the next target can be a lower low around 9,682. However, a bullish breakout of 10,420 can lead BTC towards 10,600 and 10,900. Economic Calendar – U.S Building Permits & Consumer Confidence!     EUR/USD – Slips Lower Amid Descending Triangle Breakout The EUR/USD pair declined to a new 2-week low of 1.1091, as US economic figures shocked to the upside, while ECB’s Rehn discoursed about “significant” stimulus required. US Retail Sales increased by 0.7% in July, more than doubling the 0.3% boost expected.

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Daily FX Analysis, Aug 15 – Major Trade Setups & Economic Events!

On Thursday, the U.S. dollar index continues to trade choppy due to lack of market-moving fundamentals. The market is currently trading the Risk-off theme which is driven by global slowdown across the board, for instance, a day before we saw weakening German data as well as a big miss on China data. As per Reuters poll of foreign exchange strategists, the Chinese yuan is likely to decline further beyond the current 7 per dollar rate across the upcoming year as Beijing steps back from managing the currency amid tariff threats from Washington. Bitcoin also remained in highlights, especially after BTC/USD found itself trading around $9,700, down a jaw-dropping 8% in the past 24 hours. This move surprised many traders as the drop came after Goldman Sachs analyst recently claimed that Bitcoin could soon hit $14,000, adding that BTC’s medium-term prospects are looking surprisingly bullish. Economic Calendar – U.S & U.K’s Retail Sales In Play! Retail Sales m/m – 8:30 GMT The UK retail sales, listed to be published later this session at 8:30 GMT, is expected to sink -0.3% m/m in May, following a 1.0% figure seen in June. Indeed, no-Brexit sentiments and ongoing geopolitical tensions between the U.S. and China is making consumers frightened which is causing a drop in retail sales. Worse than expected figures may put extra weight on Sterling today. US Retail Sales – 12:30 GMT The US economy is focused on consumption and inflation figures as this has been an opulent cause of the growth of late.

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