Market is standing at the resistance and support levels – waiting for reversal or breakout

Gold: US Domestic data disappointment

Gold has rebounded harder from the major support 1690. Now the gold price is near to the lower high level of a descending channel in the daily timeframe. The major support level for gold is 1690 to 1680 level which is really very hard to break at this time. However, trend reversal will happen if gold breaks this major support 1680, until that you can expect a ranging movement between the recent highs and lows.

Gold ismoving between the descending channel range

Gold Prices are rallied in the last 2 days of Last week as correction phases; the main reason behind this was US Domestic news of Michigan Consumer sentiment drops to 70.2 versus 81.2 expected on Friday.

Gold Prices are rallied in the last 2 days of Last week as correction phases

China retail sales data and industrial production were lowered readings versus higher number forecasted.

In China, the growth rate of Industrial Production came at 6.4% YoY in July versus 7.8% expected.

And Retail sales declined to 8.5% from 12.1% from last month. Both readings show a Dull number after Delta variant spreads and Flood in Henan Province impacts consumer spending and Production.

And slower China reflected the metal sector like Steel and Iron ore costs made lower.

US Dollar: Michigan Consumer sentiment

USDCAD moving in an uptrend range between the resistance and support.

USDCAD moving in an uptrend range between the resistance and support

USDJPY is falling down continously in a descending channel range.

USDJPY is falling down continously in a descending channel range

US Dollar came down from a higher high as 0.50% down from 93.200 level as US Consumer confidence data came lower than expected.

US Dollar came down from a higher high as 0.50 down from 93.200 level as US Consumer confidence data came lower than expected

And China domestic data like Retail sales and industrial production also came lower than expected.

After a long rally of US Dollar from 102-111, now corrected the market, expected to come at near support of 109 which was already tested support in last week.

Joe Biden package of infrastructure plan will be executed in few months as Senate Approved it last week.

And Delta variant small increase saw in the US, And Jobless data is essential for US Dollar.

EURO: The faster pace of Vaccination in Euro Zone

EURUSD is moving up slowly between this descending channel range.

EURUSD is moving up slowly between this descending channel range

EURUSD bounce back from the support of 1.17 level last Friday after US Consumer sentiment keeps lower reading.

Euro faster pace of Vaccination in Euro Zone

EU may not taper assets until 2024, and the Faster pace of Vaccinations are progressing in Euro Zone.

And Domestic data of German-made poor reading in last 6 months shows the weaker pace of Euro.

ECB and FED show similar exposures on the delay of tapering and hike rates. The economy is running in a good direction; ECB and FED may wait for more patience for rate hikes.

UK Pound: Slower the Delta variant in the UK

GBPUSD is moving in a descending channel range.

GBPUSD is moving in a descending channel range

UK Pound made ranging market as 1.37-1.39 level in last week as Covid-19 infections are slow down in the UK.

FED is delaying tapering assets, and Continuous printing money will devalue the currency of the US, and Lower inflation data will impact by Looser monetary policy settings.

And the post-Brexit issue on Northern Ireland Protocol was extended to the last date as September 30 until free meat transportation will be allowed to England.

Tuesday FED Powell speech will determine the Flow of US Currency directions, and the Bank of England also waiting for Tapering based on the FED decision.

Canadian Dollar: Canadian PM Elections

CADJPY hits the horizontal support.

CADJPY hits the horizontal support

CADCHF retraced down 61.8%.

CADCHF retraced down 61.8

Canadian Dollar makes lower as Oil Prices plunged as China Domestic data, not in good condition.

The Canadian Nation formed a general election commenced on September 20; Justin Trudeau is expected to come for a second time as investors’ expectations.

Majority is supported Justin Trudeau current PM

Polls said 170 seats of Majority is supported Justin Trudeau current PM because the Current PM has handled the Pandemic time of 2020 well and keeps the economy well.

The July month inflation data of Canada is scheduled this week and Bank of Canda tapering does not end and more tapering of Bonds is expected.

Japanese Yen: Q2 GDP data released

AUDJPY hits the support level now.

AUDJPY hits the support level now

Japanese Yen made higher after Second Quarter GDP shows 1.3% versus 0.7% forecasted.

Due to this, All-counter pairs against JPY got a free fall to 1% in the Market.

And US Dollar also got weak based on Friday. US Michigan consumer sentiment data came at lower numbers and Japanese Q2 GDP Data.

China Facing a Tough Delta variant in Many provinces and Expected GDP data may come lower.

State of emergency extended
Japan Scene around Nara Station during the declaration of a state of emergency Nara Japan

Japanese Government announced an extended national lockdown until mid of September due to the rapid spread of the Delta variant in Japan.

Now cases were highest to 1563 as 42 cases up from the previous day. Now extended emergency lockdown only solution to recover the nation from Spread.

By considering these situations, the Japanese Government announced this type of emergency lockdown.

Australian Dollar: Iron ore prices dropped as China domestic data underperformed

AUDNZD reached the support of the descending triangle exactly..

AUDNZD has reached the support of the descending triangle expecting rebound

Australian Dollar losses more as more delta variant issues in major cities happening in the current situation.

Australia Loading of iron ore on very big dump body truck

Only 16% of the current population of Australia is only fully vaccinated, and now vaccination progress gained speed to avoid spread.

And Iron ore prices keep a quick drop to 130/MT as 5 months low as China made poor domestic data.

This week RBA meeting minutes happening, and July month Jobs data to publish; any positive news on Jobs data will boost the views of RBA could taper the Bonds and Hike rates soon.

New Zealand Dollar: RBNZ meeting this week

NZDUSD fallen from the resistance zone, now going to break the minor symmetrical triangle pattern.

NZDUSD fallen from the resistance zone now going to break the minor symmetrical triangle pattern

New Zealand Dollar shows a range-bound market as the Reserve Bank New Zealand Policy meeting happened this week.

Rate Hikes are expected in this policy meeting, and labour data was well-performed last week.

Goals of Labor data and Inflation data may support New Zealand central bank to hike rates and more tapering in this meeting.

And Chinese data of Retail sales and industrial production are lower than expected reading printed on Monday, which shows fewer export revenues for New Zealand Country.

Swiss Franc: US FED Powell Speech on This week

USDCHF is at the retest area of the old broken descending channel.

USDCHF is at the retest area of the old broken descending channel

Swiss Franc realizes more gains against US Dollar and Other counter pairs on Friday due to slowdown Growth in China and the US.

Swiss Franc remains ultrasafe haven

Investors feel more fears on Spread of Delta variant on Global levels, Hence Parking of Funds to haven like Swiss Franc from US Dollar.

Now Tuesday made Powell Speech will give directions for US Dollar, and Any tapering solutions will be given then it will be positive for US Dollar.


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