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Durablegoods

EURUSD has more downside room unless hitting 0.9700EURUSD dropped to the lowest since late 2002 during the four-day downtrend. The oversold RSI, however, tested the bears afterward around 0.9900. It’s worth noting that the consolidation remains elusive until the quote stays beyond the previous monthly low near 0.9950. Even so, the parity level and a six-week-old horizontal resistance area around 1.0090 could challenge the upside momentum before directing the buyers towards the 1.0255-60 resistance confluence including the 50-DMA and upper line of the bearish channel established on May 12. Alternatively, the 61.8% Fibonacci Expansion (FE) of late May to early August downside, close to 0.9850, appears immediate support to watch during the EURUSD pair’s further weakness. It’s worth noting, however, that a joint of the 78.6% FE and lower line of the aforementioned channel, near 0.9700 at the latest, appears a tough nut to crack for the bears afterward. In a case where the quote remains weak past 0.9710, lows marked during late 2002 and a high of early 2001, between 0.9610 and 0.9590, will be in focus. Overall, EURUSD remains on the bear’s radar but 0.9700 becomes strong support as traders await the key US data/events.
Short
by MTradingGlobal
EURUSD hints at corrective pullback during the big weekDespite a refreshing two-year low, EURUSD prices remain above a five-month-old downward sloping support line. Adding strength to the recovery hope is Emmanuel Macro’s victory in French Presidential Elections and nearly oversold RSI. That being said, the 10-DMA level surrounding 1.0810 challenges the corrective pullback before directing buyers towards the monthly horizontal resistance near 1.0940. It’s worth noting, however, that the 50-DMA and a descending trend line from early February, respectively around 1.1000 and 1.1030, will be tough nuts to crack for the pair bulls afterward. Meanwhile, the aforementioned support line from late 2021, near 1.0690 by the press time, restricts the immediate downside of EURUSD prices ahead of Tuesday’s Durable Goods Orders. Also important for the week are the Preliminary readings of Q1 2022 GDP figures for the US and Eurozone, up for publishing on Thursday and Friday in that order. Even if the quote drops below 1.0690, the year 2020 lows around 1.0635 and the 1.0600 threshold may entertain bears ahead of highlighting the late 2015 bottom of 1.0515.
by MTradingGlobal
Gold bears flex muscles on a big dayBe it the March PMIs or US Durable Goods Orders, not to forget the key NATO meeting, Thursday has it all to trigger market volatility. Gold has already printed a bear cross but the 200-SMA has been defending bulls so far, suggesting a tough fight between the buyers and sellers. However, lower-high formation since the early days of March, as well as sluggish MACD and gradually picking up RSI, keeps sellers hopeful of witnessing a break of the 200-SMA support, around $1,910. Following that, the monthly low and late February’s bottom, respectively around $1,895 and $1,878, will act as validation points for the bear’s entry. On the contrary, a clear upside break of the 100-SMA level surrounding $1,955 will escalate the gold prices towards the previous month’s peak near $1,975. Though, the $2,000 threshold and 23.6% Fibonacci retracement of January-March upside around $2,002 will challenge the metal buyers. In a case where the bullion prices remain firm past $2,002, the quote can confront the $2,040 hurdle with hopes of challenging the monthly peak of $2,071. To sum up, gold sellers slowly grip the prices ahead of the key data/events but it all depends more on fundamentals, making it necessary for traders to remain cautious.
OANDA:XAUUSD
by MTradingGlobal
EURUSD stays inside falling wedge, US Durable Goods Orders eyedEURUSD bears take a breather around weekly low, after a two-day downtrend, during early Wednesday. Although risk-on mood helps the EURUSD to consolidate weekly losses, the likely firmer US Durable Goods Orders print keeps the bears hopeful. Additionally, the quote’s sustained trading inside a broad falling wedge since early June and a recent drop below 10-DMA joins bearish MACD signals to add technical assent to the bearish expectations. That said, the yearly low surrounding 1.1520 is on the cards ahead of the stated wedge’s support line near 1.1475. During the fall, March 2020 peak close to the 1.1490 may offer an intermediate halt. On the contrary, an upside clearance of the 10-DMA, around 1.1620, may direct short-term buyers towards the monthly peak of 1.1668. However, bulls are less likely to take the risk of entries until witnessing a successful break of 1.1725, comprising the wedge’s resistance line. Following that, hopes of the trend reversal can’t be ruled out. It should be noted that the corrective bounce following the US Durable Goods Orders should be taken with a pinch of salt as the key data/event is Thursday’s US Q3 GDP and the European Central Bank (ECB) meeting.
Short
by MTradingGlobal
1
USDCAD rebounds from 20-DMA amid risk-off marketsRisk appetite sours during early Wednesday, underpinning the US dollar’s safe-haven demand ahead of the key US Durable Goods Orders. The greenback rebound triggers the USDCAD pair’s U-turn from 20-DMA. Given the firmer RSI and sustained trading beyond 200-DMA, not to forget the latest bounce off the immediate moving average, the Loonie pair is up for further advances towards July’s top surrounding 0.2810. However, 1.2670 and 1.2750 may challenge the bulls on the way to 1.2810. In a case where the pair buyers remain dominant past 1.2810, the monthly top near 1.2950 and the 1.3000 psychological magnet will be in focus. Meanwhile, a daily closing below 20-DMA level of 1.2575 will have a bumpy road as 200-DMA and an ascending support line from June 23, respectively around 1.2550 and 1.2530, will challenge the USDCAD sellers afterward. If at all the pair bears conquer the 1.2530 trend line support level, June’s high of 1.2485 and July’s low near 1.2420 will be in focus. It should be noted that the cautious sentiment ahead of this week’s Jackson Hole Symposium and virus-led pessimism favor USDCAD bulls.
Long
by MTradingGlobal