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AUDUSD - The trading instrument develops a "bearish" momentum​

Today, the Australian Bureau of Statistics reported an increase in retail sales index in monthly terms by 1.3% compared to 0.2% last month and experts' forecasts of 0.3%, while the dynamics in annual terms consolidated around 16.5%. Department store sales increased the most, adding 3.8% or 67.7M dollars, while analysts estimate that sales in clothing grew by 3.3%, food by 1.2%, and cafes and restaurants — by 1.8%. The only segment that showed negative dynamics was the sale of household goods, which decreased by 1.1% or 68.8M dollars. Building permit statistics are expected to be published tomorrow, and analysts suggest that the figure will fall by another 2.0% according to the global trend.

On the daily chart of the asset, the price is correcting, completing the formation of the head and shoulders reversal pattern. Technical indicators are preparing for a new reversal and have given a sell signal: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram forms downward bars in the sell zone.

Resistance levels: 0.6927, 0.705 | Support levels: 0.6806, 0.6681​

 

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Digital gold under pressure after Jerome Powell's speech​

The reason for the weakening of "digital gold" and, with it, the majority of alternative digital assets was the Friday comments of the head of the US Federal Reserve, Jerome Powell. At the Jackson Hole symposium, the official said the regulator would continue to adjust interest rates even as they put pressure on economic growth. At the same time, he noted that the increase cycle could not be stopped or slowed down, although inflation could already have reached its peak. After the indicator approaches the level necessary for a sustained downward movement in consumer prices, it will linger in this area for a while and not go down. Powell's position did not live up to the expectations of investors who were counting on the possibility of a slowdown in the pace of monetary tightening in the US after the July rollback of inflation from 9.1% to 8.5%. The US Federal Reserve will continue raising rates, and the US currency will continue to receive serious support, strengthening against its main competitors.

In general, the forecast of Galaxy Digital founder Mike Novogratz, who previously noted that the cryptocurrency market would remain under pressure for the entire period of tightening monetary policy in the United States, is justified.

Currently, the trading instrument is close to 19531 (Murrey [1/8]), a downward breakdown of which will give the prospect of further decline to 18750 (Murrey [0/8]) and 17800 (the area of June lows). Bollinger bands downward reversal and MACD histogram increase in the negative zone indicate the continuation of the short-term downward trend, while Stochastic reversal in the oversold zone does not rule out corrective growth to 21093 (Murrey [3/8]), although its potential is seen as limited.

Resistance levels: 20312, 21093, 21875 | Support levels: 19531, 18750, 17800​

 

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The shares of PayPal, the American debit payment system, are correcting around 92.

On the daily chart, the price is above the resistance line of a wide downwards channel with dynamic boundaries at 55 – 85, however, a trend change is unlikely since an attempt to overcome the local high at the beginning of the month at 102 was unsuccessful.

On the four-hour chart, it is clearly seen that also to the rebound of quotes from the local high, the formation of the reversal Head and shoulders pattern with the Neck line at 90 has almost completed, which significantly increases the prospects for decline.

Technical indicators have weakened the buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming downward bars in the buying zone.

 

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USDJPY - strong dollar keeps the pair from falling​

Since the beginning of the week, macroeconomic releases have not put pressure on the Japanese currency: the unemployment rate in July remained at June (2.6%), and the ratio of the number of vacancies and applicants improved to 1.29 from 1.27 a month earlier, although analysts did not expect changes. Among the negative aspects, it is worth highlighting another decrease in the index of leading indicators, which amounted to 100.9 points instead of 101.2 points earlier. Tomorrow, data on the volume of industrial production for July will be published: according to forecasts, the figure will fall by 0.5% after rising by 8.9% in June, which could become a serious factor in pressure on the yen.

The US dollar retreated from yesterday's highs and trades around 108.7 in the USD Index. Investors continue to evaluate the speech of US Federal Reserve Chairman Jerome Powell at the economic symposium in Jackson Hole. Still, this week will be filled with statements by the heads of regional federal reserve banks, who will share their views on the prospects for national monetary policy. The local dynamics of quotations can be seriously affected by today's data on the number of open vacancies in the labor market from JOLTS, which will be published in the evening: analysts suggest that in July, the figure will decrease to 10.475M from 10.698M, which is likely to hurt the national currency.

The trading instrument moves within the global uptrend, forming a Head and shoulders pattern. Technical indicators keep a buy signal: indicator Alligator's EMA oscillation range is directed upwards, and the histogram of the AO oscillator forms bars above the transition level.

Resistance levels: 139.3, 143 | Support levels: 136.7, 132.2​

 

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NZDUSD - Trades within the global downtrend​

The report of the Statistical Office of the country (Stats NZ) on job occupancy, published yesterday, reflects a stable situation in the national labor market: the number of workers in all sectors of the economy increased by 0.5% or 10.863K in July. The segment of technical services increased the most, adding 5.1%, followed by construction (4.8%), public administration (4.3%), retail (3.5%), and manufacturing (1.9%) sectors. The only area that showed negative dynamics was agriculture and the extraction of raw materials, where the number of workers decreased by 2.0% or 2.145K people.

The American currency consolidated just below 109 in the USD Index. Today, markets look forward to data on the number of open vacancies in the labor market from JOLTS. Analysts suggest that the value will decline to 10.475M from 10.698M a month earlier, which is an alarming signal, especially before tomorrow's report on employment in the non-farm sector, where experts are counting on an upward trend. Today, traders' attention will be focused on the Conference Board report on the index of consumer confidence, which, according to the forecast, may improve to 97.9 points from 95.7 points earlier.

The trading instrument is moving within the global downtrend, approaching the support line. Technical indicators maintain a sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars in the sell zone.

Resistance levels: 0.623, 0.645 | Support levels: 0.6097, 0.593​

 

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CAC 40 - French stock market is actively declining​

The stock index of France continued to decline this week after the financial authorities of the eurozone announced the continuation of aggressive monetary policy at the annual economic symposium in Jackson Hole. At the moment, CAC 40 quotes are correcting down, being at 6251. European Central Bank (ECB) Executive Board member Isabel Schnabel has warned that central banks must act decisively to fight inflation despite recession risks. In turn, the Governor of the Bank of France, François Villeroy de Galhau, said that he had no doubt that the European regulator would continue the policy of raising interest rates, bringing them to 1%-2% by the end of this year. The next meeting of the ECB will take place on September 8, and experts suggest that the value can be adjusted to 1.00% from 0.50%.

In the domestic bond market, the yield on the entire line of debt securities continues to rise, putting pressure on stock assets. The rate on popular 10-year government bonds is at 2.114%, up from 1.365% at the beginning of the month, and on long-term 20-year bonds it is 2.441%, up from 2.277%, which were demonstrated last week.

Quotes of the index reversed and began to show an active decline. At the same time, technical indicators have already given an updated signal for the start of sales: the fast Alligator indicator EMAs crossed the signal line from above, and the histogram of the AO oscillator moved to the sales area, forming descending bars.

Support levels: 6132, 5840 | Resistance levels: 6354, 6615​

 

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ETHUSD - Price increase may be temporary​

The ETHUSD pair started the current week with growth and regained some of the losses incurred after the statement of the head of the US Fed Jerome Powell on Friday. Against the background of confirmation of the regulator's determination to continue tightening monetary policy and keep interest rates high for a long time, the price of the cryptocurrency has adjusted to the area of 1423.2, but has now returned to the level of 1590.

The traditional support for the asset is provided by the expectation of the transition of the Ethereum network to the Proof-of-Stake (PoS) proof algorithm, which should significantly increase its throughput and create new opportunities for using smart contracts. According to the roadmap published by the Ethereum Foundation, the Bellatrix update is scheduled to be released on September 6 and will be the beginning of the process of merging the Ethereum and Ethereum 2.0 networks, which will be finally completed in the period from September 10 to September 20. Most experts are confident that switching to PoS will lead to an increase in the value of ETH, however, some believe that on the eve of this important event, the price will remain under pressure. For example, Bank of America analysts note that investors can switch to a wait-and-see position or temporarily start moving to other blockchains, such as BSC, Tron, Avalanche and Solana, in order to wait out technical instability, but so far this skepticism is not justified, and the price continues to rise.

Technically, a short-term downward trend remains in the ETHUSD pair, as evidenced by the downward reversal of the Bollinger Bands and the stabilization of the MACD histogram in the negative zone. The key for the "bulls" is the level of 1750 (Murray [6/8]), supported by the middle line of the Bollinger Bands, the breakout of which will give the prospect of continued growth to the levels of 1895 (Fibo retracement 38.2%, Murray [7/8]), 2030 (the area of August highs). With a breakdown of the level of 1500 (Fibo retracement 23.6%, Murray [4/8]), the decline will be able to resume to the levels of 1375 (Murray [3/8]), 1250 (Murray [2/8]), 1125 (Murray [1/8]).

Resistance levels: 1750, 1895., 2030 | Support levels: 1500, 1375, 1250, 1125​

 

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The shares of Bank of America, the largest financial conglomerate in the US, are moving within the corrective trend of around 34.

On the daily chart, the price has left the global downward channel with dynamic boundaries at 27 – 33 and is trying to stay within the corrective trend that began after overcoming the initial 23.6% Fibonacci correction at 34.7. On the four-hour chart, it is seen that the upward impulse has high prospects for implementation. However, they are relevant only after the quotes reconsolidation above 34.70.

Technical indicators keep a buy signal: indicator Alligator’s EMA oscillation range is directed upwards, although it is narrowing, and the histogram of the AO oscillator forms downward bars in the buying zone.​

 

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Crude Oil - decline after reports of continued supplies from Iraq

After a significant increase, quotes returned to levels below 100 and, according to leading experts, the downward dynamics are due to reports from the Iraqi State Oil Company (SOMO), which indicate the intention to continue continuous export of fuel, despite ongoing mass protests, which, in turn, weakened the fears of investors about the shortage of raw materials. European countries are currently called the key direction of supplies, and, according to SOMO, if buyers express interest, the company is ready to increase the volume of transportation of “black gold” to the region from 20% to 40%, for which the delegation has already gone to Germany for negotiations.

An additional pressure factor on the quotes was the statistics on stocks from the American Petroleum Institute (API), according to which the index rose by 0.593M barrels after falling by 5.632M a week earlier.

As for the demand for oil contracts from investors, last week, there were global changes: according to the US Commodity Futures Trading Commission (CFTC), the number of net speculative positions for the first time since the beginning of summer reached 246.2K, rising from 214.9K contracts a week earlier, which may be the primary sign of a change in the trend in the asset.

On the daily chart of the asset, the trading instrument has left the limits of the local downwards channel, having overcome the resistance line. Technical indicators reversed upwards: fast EMAs of the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram forms upward bars in the buying zone.

Resistance levels: 102.53, 111.97 | Support levels: 96.48, 91.16​

 

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Nasdaq 100 - the US stock market continues to decline​

The US stock market continues to correct downwards against the backdrop of negative news background and the US Federal Reserve's plans to continue aggressively raising interest rates. At the moment, Nasdaq 100 quotes are showing a downtrend, being at 12443.

In the corporate segment, another letter from the lawyers of Elon Musk to the management of Twitter came to the fore, providing a number of reasons why the CEO of Tesla has the right to refuse to purchase a social network. In turn, lawsuits against the leadership of some states, initiated by Tesla continue. According to the company's lawyers, the legislative framework introduced there does not allow selling electric cars without using the services of dealers, which hinders the development of trade: the automaker filed a lawsuit against the Louisiana state authorities, accusing them of creating artificial restrictions.

Meanwhile, the upward correction continues on the domestic bond market. The popular 10-year Treasury yield is 3.1%, up from 2.58% in the month, and the conservative 20-year bonds have a yield of 3.49%, well above the 3.21% seen in early August.

Quotes of the index continue to decline, approaching the recently passed resistance line of the descending channel. Technical indicators quickly reacted and reversed: the fast Alligator indicator EMAs crossed the signal line from above, expanding the range of fluctuations, and the histogram of the AO oscillator moved to the sales area.

Support levels: 12181, 11181 | Resistance levels: 12894, 13675​

 

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USDJPY - "bulls" are preparing to update the June high

Today, macroeconomic data that came out in Japan supported the quotes of the national currency. Industrial Production in July was 1.0%, exceeding the negative forecast of analysts at the level of -0.5%, while the volume of Retail Sales in annual terms for the same period was at the level of 2.4% against preliminary estimates of 1.9 %. Against this background, the USD/JPY pair fell to 138.30; however, the long-term trend remains upward.

Also today, Bank of Japan's board member Junko Nakagawa made a speech, based on whose statements it can be concluded that the regulator is still committed to maintaining the financial stimulus program to combat the consequences of the COVID-19 pandemic. According to the official, the regulator will be cautious in decisions on monetary policy, and its main task is not to interfere with the actively recovering economy.

Further dynamics of USDJPY will depend on macroeconomic statistics from the US coming this week. Market participants are waiting for the publication of data on Nonfarm Payrolls on Friday. Analysts suggest that the figure will add 300 thousand new jobs. If the actual value turns out to be close to the forecast or exceeds it, then the US dollar is waiting for further strengthening, and the USDJPY pair is likely to renew the June high around 139.2.

The long-term trend is upward. Yesterday, the instrument came as close as possible to the level of 139.2, in case of a breakout of which, the growth will continue with the targets of 141 and 142.5, and if it is held, a correction to the area of 136 – 135.3 will take place.

As part of the medium-term uptrend, the pair reached the target zone 2 (138.75–138.32). The "bulls" need to consolidate above this area, and then the next target of the upward movement will be the target zone 3 (143.11–142.67). The key trend support is shifting to the levels of 134.94–134.54. If it is tested as part of a correction, traders should consider new long positions in the asset.

Resistance levels: 139.2, 141, 142.55 | Support levels: 136, 135.3, 132.2​

 

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EURUSD - inflation in the EU has set another record

The European currency is resisting the growth of the dollar, trading around the 1.0014 mark after the publication of a block of macroeconomic data yesterday.

Thus, consumer prices in the EU in August added 0.5%, which led to an increase in the annual inflation rate to 9.1% from 8.9% (food and energy prices rose the most), while local inflation in countries bloc increased almost everywhere: in Italy, it reached 8.4% from 7.9% a month earlier, and in France, the figure fell to 5.8% instead of 6.1%. Rising consumer prices will require European Central Bank (ECB) officials to continue their "hawkish" policy, and already at the meeting on September 8, the interest rate could be raised immediately by 1.00%.

The American currency in yesterday's trading again renewed the annual maximum around 109.100 in the USD Index after the President of the Federal Reserve Bank of New York, John Williams, in his statement, clarified the "restrictive level of stability" of the interest rate announced by the head of the US Federal Reserve, Jerome Powell. That mark is in the 3.5% region, well above the current rate, Williams said, but experts are now evaluating the likelihood that the agency will want to reach that level in one step at its next meeting on September 21, putting significant pressure on the US economy, which and so is going through a recession.



The trading instrument is kept within the global downward channel, correcting towards the resistance line. Technical indicators maintain a stable sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms downward bars in the sell zone.

Resistance levels: 1.0095, 1.0321 | Support levels: 0.9940, 0.9753​

 

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XAUUSD - demand for gold is falling again​

Due to the strengthening of the USD Index to the high of the year at 109, the XAUUSD pair is correcting in a downtrend around 1705.

The reason for the positive dynamics of the US dollar was several factors, the key among which was the speech of the head of the US Federal Reserve, Jerome Powell, at the symposium in Jackson Hole. The official gave the markets a clear signal that the regulator will continue to raise interest rates until inflation is brought under control, after which the rate will be kept at a “stable level” for some time to consolidate the effect of the measures already taken. According to him, the restoration of price stability will require a decisive use of central bank instruments, so experts suggest that at the September meeting, the US Federal Reserve will raise interest rates by 75,0 basis points for the third time in a row. However, yesterday, the head of the Federal Reserve Bank of New York, John Williams, noted that the optimal level of the indicator is 3.5%, which hints at a possible adjustment immediately by 1.00%. A sharp rise in value is always a negative sign for gold.

Serious changes continue in demand for the metal from investors. According to the latest report from the US Commodity Futures Trading Commission (CFTC), last week, net speculative positions in the asset decreased to 125.8K from 141.2K contracts. If we pay attention to the activity of traders, then the sellers held the lead in cash-backed contracts, reducing them by 2,739K positions, while buyers liquidated only 99 contracts.

On the daily chart of the asset, the trading instrument stays within the global downwards channel with dynamic boundaries 1770.0–1630.0. Technical indicators strengthen the sell signal: fast EMAs on the Alligator indicator are kept well below the signal line, and the AO oscillator histogram continues to fall in the sell zone.

Resistance levels: 1721, 1770 | Support levels: 1696, 1650​

 

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DAX 30 - German stock market remains under pressure​

Frankfurt's leading index DAX 30 is correcting downward, trading at 12752. Quotes have changed their trend to a downtrend, and weak macroeconomic indicators and growth in the domestic bond market remain the key pressure factors. Experts' forecasts regarding the German economy are pessimistic. The key segment of the economy, the labor market, has been decelerating for the third month in a row: Unemployment Rate increased from 5.4% to 5.5% in August, and the Unemployment Change increased from 2.469 million to 2.497 million, adding 28.0 thousand over the reporting period.

The domestic bond market continues to grow rapidly, putting key pressure on the stock market. The yield on German 10-year government bonds rose to 1.5410% from 0.7610% in the month, 20-year bonds yield rose to 1.622% from 0.959% at the beginning of the month, and the yield on global 30-year bonds rose to 1.627%, which is much higher than 1.001% a month earlier.

On the daily chart of the asset, the price is trading within a Triangle pattern, approaching the support line. Technical indicators reversed towards decline: the fast Alligator indicator EMAs crossed the signal line from above, and the histogram of the AO oscillator moved to the sales area, forming descending bars.

Support levels: 12528, 11703 | Resistance levels: 12973, 13933​

 

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USDJPY - Growth is possible​

On the daily chart, the third wave of the higher level 3 develops, within which the third wave of the lower level iii of 3 formed, and a downward correction ended as the fourth wave iv of 3. Now, the fifth wave v of 3 is developing, within which the first wave of the lower level (i) of v has formed.

If the assumption is correct, after the end of the local correction (ii) of v, the USD/JPY pair will grow to the area of 145 – 150. In this scenario, critical stop loss level is 131.7.

 

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XAUUSD - The pair may grow.

On the daily chart, a downward correction ended as the fourth wave of the higher level (4), within which the wave C of (4) formed as a momentum and the fifth wave (5) started. Now, the first entry wave of the lower level i of 1 of (5) has formed, and the local correction has developed as the second wave ii of 1 of (5).

If the assumption is correct, the XAUUSD pair will grow within the wave iii of 1 to the area of 1857.25 – 1910.3. In this scenario, critical stop loss level is 1681.43.

 

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EURUSD - A fall is possible.​

On the daily chart, the downward wave of the higher level C of (B) develops, within which the fifth wave v of (C) forms. Now, the fifth wave of the lower level v of C is developing, within which the wave (v) of v of C is forming.

If the assumption is correct, the EURUSD pair will fall to the area of 0.98 – 0.97. In this scenario, critical stop loss level is 1.0082.

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GBPUSD - A fall is possible.​

On the daily chart, the fifth wave of the higher level V develops, within which the wave (1) of V forms. Now, the fifth wave of the lower level 5 of (1) is developing, within which the wave iii of 5 is forming.

If the assumption is correct, the GBPUSD pair will fall to the area of 1.13 – 1.105. In this scenario, critical stop loss level is 1.1887.

 

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USDCAD - Candlestick Analysis​

H4
On the 4-hour chart in the ascending trend channel below the level of 1.3207 there is a formation of a Hanging Man candlestick analysis pattern, signaling an impending price reversal, as well as two Shooting Star patterns, indicating weakening buyer activity. At the moment, above the level of 1.3089, a Three Black Crows figure has appeared, which similarly emphasizes the "bearish" sentiment for the instrument. The most likely is the decline of the asset to the zone of 1.2732–1.2454 after overcoming the lower boundary of the uptrend and the support level 1.3029. An alternative scenario is possible if the price consolidates above the resistance level of 1.3267 with the targets of 1.3425 – 1.3716.

D1
On the daily chart at the level of 1.3207 there is a Shooting Star pattern, which is a reversal pattern at the top, as well as the formation of a Hanging Man confirming pattern, which appears in the area of high prices and signals that the asset has reached a local top. In this case, a downward scenario from the support level of 1.3029 seems more likely, and consolidation of the price below it will allow the "bears" to head to the zone of 1.2732–1.2454.

Support levels: 1.3029, 1.2732, 1.2454 | Resistance levels: 1.3267, 1.3425, 1.3716​

 

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XAUUSD - demand for physical gold declined sharply​

According to the reports of the world's leading mints, primarily the US, August was the weakest month of this year in terms of sales of the precious metal: the US Mint sold 46,000K ounces of gold in the form of the American Eagle coin, which is 28% lower than in July and 66% down from August 2021 and American Buffalo coin sales were 17,500K ounces, down from 39,500K ounces in July.

Another worrying factor for the asset is the outflow of investors from ETFs. Thus, over the past week, metal stocks at the SPDR Gold Shares (GLD) trust decreased by 11 tons, demonstrating negative dynamics for the tenth consecutive week, while net capital outflow in August was recorded at 456.0M dollars. Data from trading floors also confirm these changes in investment demand: according to the latest report from the US Commodity Futures Trading Commission (CFTC), last week, the number of net speculative positions in gold decreased to 117.7K from 125.8K contracts. If you pay attention to the dynamics of trading, it is "bulls" that close more deals, which can serve as short-term support for quotes: last week, swap dealers liquidated sell positions by 5,296K, and buyers increased by 1,755K contracts.

On the daily chart of the asset, the price is moving within a downward channel and, after reaching the low of the year, is preparing for a local reversal. Technical indicators maintain a sell signal, ignoring a possible local correction: fast EMAs on the Alligator indicator are kept well below the signal line, and the AO oscillator histogram is decreasing in the sell zone.

Resistance levels: 1727, 1802 | Support levels: 1696, 1640​