Previous Week
US dollar was one of the best performers in the previous week on account of ongoing US-China trade war escalation. The US has imposed 15% tariffs on more than $125 bn of Chinese goods including footwear, smartwatches, etc which comes into effect from Sep 1st, 2019 and China retaliated by imposing additional tariffs on $75bn US.
DXY continues to trade higher for 2 nd consecutive week and jumped more than 150 pips from the previous week low 97.48 and is currently trading around 99.23.
The precious metal is consolidating after hitting a 6-year high. It has shown a minor decline due to profit booking. It hits low of $1517 and is currently trading around $1527.50.
US 10 year bond yield shown a minor recovery of more than 7% after hitting a 3-year high. It is currently trading at 1.51%. The yield curve between US 10 year and 2-year inversion got narrowed by 1 bps from 5 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.0930
Near term support- 1.0930/1.0850
Near term resistance – 1.100/1.1030
USDJPY:
Major trend reversal level- 106.70
Near term support- 104.60/103
Near term resistance – 106.70/107.50
USDCHF
Major trend reversal level- 0.9955
Near term support- 0.9850/0.9770
Near term resistance – 0.9955/1.000
USDCAD
Major trend reversal level- 1.336
Near term support- 1.32490/1.3180
Near term resistance – 1.3360/1.3435
Gold
Major trend reversal level- $1565
Near term support- $1517/$1490
Near term resistance – $1565/$1600
WTI Crude
Major trend reversal level- $50.50
Near term support- $52.95/$50.50
Near term resistance – $55.30/$57.20
Major Economic events for the week
US ISM Manufacturing m/m – Tuesday (2:00 PM GMT)
Canadian Trade balance - Wednesday (12:30 PM GMT)
BOC Rate statement - Wednesday (2:00 PM GMT)
US ADP Non-Farm employment - Thursday (12:15 PM GMT)
US Non-Farm employment change- Friday (12:30 PM GMT)
Canadian Employment change - Friday (12:30 PM GMT)
