Forex trading plan for Sept 1
We expect the US Dollar to strenghten this week ahead of the labor market data on Friday (forecasts are upbeat). Given this view, EUR/USD is a SELL these days with a target of 1.0950. Technical picture confirms the ideas as the pair pulled back from the 55-week MA, forming a long-legged red candle last week. Watch the unemployment rate in the euro area tomorrow.
GBP/USD also looks bearish this week, but the doji candle formed last Friday creates room for a bullish pullback. We recommend selling on rallies to 1.5480 (former trend support), targeting 1.5330. Watch the UK Manufacturing PMI tomorrow.
As for AUD/USD, the pair is trading in the red ahead of the RBA meeting on Tuesday. No rate cut is expected, so the pair could get temporary support from this side. This would become a good point to sell on rallies. Don't miss China's PMI indices on Tuesday - data could become a negative surprise for the commodity currencies.