Trading plan for August 27
Policy stimulus launched by the Bank of China on Tuesday failed to support the Shanghai Composite (-1.3% on Wednesday). However, the overall market sentiment improved with the Brent price pausing its losses.
US Dollar index is seen recovering for a second day in a row and won back the sharp “black Monday” losses. However, it still fails to close above the 95 points resistance. US releases strong durable goods data on Wednesday, but the market reaction was muted. The market is still cautious about buying the greenback.
On Thursday, don’t miss the US Q2 GDP second estimate (forecast - upbeat) and the unemployment claims figures. Jackson Hole symposium starts tomorrow – comments on the global economy will likely follow.
EUR/USD remains under bearish pressure. The pair will be driven by the risk sentiment these days. The pair pulled back from the 55-week MA and the weekly Ichimoku. Fix below 1.1500 will open the way for a rapid slide to 1.1200.
GBP/USD also gave up ground, falling below 1.5700. The pair is testing 38.2% Fibo at 1.5570 as we speak. Bearish target -1.5520 (trend support).
USD/JPY behaves a bit differently: it’s far from recovering to the Monday’s opening levels. Resistance lies at 120.00/30. Support – 118.50 and 116.00. According to the Japanese government, yen is far from being expensive these days.
Commodity currencies remain a sell. Tomorrow we’ll be watching Australia private capital expenditure (a decline is expected). Data could easily pull AUD/USD down below 0.7100.