Buy EUR/USD – MT is Sideways Volatile.
Daily chart.Technical overview: Price has remained within the area of consolidation. We have seen the market attempt to break the secondary resistance level. As the overall market remains bullish, we will look for a clear break above 1.19 before continuing to go long on the EUR targeting 1.24.
Fundamental analysis: Strong Data coming out from the EU and the overall weakness from the dollar will contribute to the continuation of the overall bullish market type. A shift in the Fed’s policy would mean that rates will not rise for years to come. While there was not much chance of rates rising in the short-term, this is clearly dovish and may be a catalyst for the next leg down in the USD.
Wait USD/JPY – MT is Sideways Volatile.
Technical Overview: Price continues to trade within the range between 107.00 and 105.00. A bearish engulfing candle has formed signifying, strong bearish pressure and a continuation of the bigger picture bearish trend. As price is approaching a key support level, it may be best to wait for a break below 105 for a continuation down to 104.0.
Fundamental Overview: Main driver of the market was the weak data coming out from the US and the tone set by the Federal reserve during the Jackson Hole Symposium. Coming into the week ahead, we have the Non-Farm Payroll data coming out which will provide us with more conviction on the direction of the market. Any escalation in regards to the US-Sino trade will also weigh on the dollar.
Buy GBP/USD – MT is Bullish.
Daily chart.Technical Overview: There has been a strong bullish breakout through key resistance at 1.32. The pair is, however, approaching a key resistance level and therefore we should buy the Pound with caution. Will await a clear breakout of the key resistance level of 1.34027 to provide us with a good risk reward ratio targeting 1.38.
Fundamental Overview: The pound has taken advantage of the dovish tone set by the Federal reserve and pushed the price to the highest level for this year. Coming into the week ahead, we have the UK inflation Report followed by the bank of England speech. The UK economy has been robust enough and no cuts are required on the interest rates based on the current fundamental outlook. With that said, attention will be focused on Brexit negotiations and a deal between the EU and UK.
Buy AUD/USD. MT is Bullish.
Daily chart.Technical Overview: Price has continued to push higher after a series of higher highs and higher lows. However, as the price is approaching a Key resistance level of 0.74, buy with caution as the current price level may invite sellers into the market.
Fundamental Overview: The current bull run is supported by the overall weakness in the dollar. Attention will be on the Reserve bank of Australia coming into the week ahead. We can expect the RBA to keep the rates unchanged as data coming out from Australia has been consistently strong.