Trading plan for 25/08/2017:
It was a very peaceful Asian session. EUR/USD yesterday was closed in a narrow trading range, it should come as no surprise that at the Asian session on the day of Yellen and Draghi's speech, the volatility was limited to just a few pips around the level of 1.1800. The flat session of the Wall Street does not bother a clear, over 1.0% increases in the indices in Hong Kong and Shanghai. The Nikkei 225 goes up 0.6% so far.
On Friday 25th August, the event calendar is busy with important data release. Germany will issue GDP figures and Ifo Business Climate, Current Assesment and Expectations sentiment data. Then, during the US session, the US will post Durable Goods Orders data and Baker Hughes U.S. Rig Count data. At the afternoon there is an anticipated speech by FED Chairperson Jannet Yellen. Later, late in the evening, the ECB President Mario Draghi will give a speech as well.
EUR/USD analysis for 25/08/2017:
Waiting for critical appearances at Jackson Hole will also reveal important macro data from the Eurozone. The German Ifo index should stabilize at a very high level and forecast expectations should only slightly decrease (from 107.3 to 106.8 points) according to the median market forecasts. Such scenario would also be a peculiar result of disappointment with the value of the ZEW index and positively surprised by PMI values. The Ifo Business Climate data is set to decrease slightly from 116.0 to 115.5 points, together with Ifo Current Assessment, which is expected at the level of 125.0 points from 126.0 points a month ago. The German GDP for the second quarter was released at the level of 0.6%, as expected. Overall, after two-quarter, the German GDP is at the yearly level of 0.8%.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market is still trading inside of a narrow range between the levels of 1.1660 - 1.1845 as the market participants expect the Yellen and Draghi Jackson Hole speeches. So far the macroeconomic data did not influence the market much. The key technical levels are techcnial support at the level of 1.1660 and technical resistance at the level of 1.1845. Larger time frames outlook remains bullish.
Market Snapshot: USD/CAD in a falling wedge formation?
The price of USD/CAD is trading inside of a narrow range which looks like a falling wedge formation. The market conditions are oversold and there is a bullish divergence between the price and the momentum indicator. Both of this factors support the bullish bias. The next technical resistance is seen at the level of 1.2770.
Market Snapshot: DXY ready for a breakout?
The price of US Dollar Index is trading in a narrow range just before the key Jannet Yellen speech. The price got stuck below the golden trend line, in a range between the levels of 93.02 - 93.63. A clear breakout above the level of 93.63 will open the road towards the nearest technical resistance at the level of 94.11, which is a key level for bulls.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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