Weekly Market Commentary | 07.07 – 13.08
07 August 2023
Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know.
Monday:
- Australia and Canada have holidays, resulting in potentially lower market activity.
- Switzerland will release its foreign currency reserves data.
- FOMC member Harker is scheduled to give a speech during the European session.
Tuesday:
- NAB Business Confidence from Australia will be the key data release of the day.
Wednesday:
- China's inflation figures will be released, with a decrease of 0.5% expected.
- New Zealand's inflation expectations will also be announced.
Thursday:
- The US will announce its inflation data, with an annual rise to 3.3% expected, up from the previous 3%.
- The weekly US Unemployment Claims report is expected to show 231,000 new claims.
Friday:
- Japan's markets will be closed.
- The UK is expected to announce GDP figures, with a growth of 0.2% predicted.
- The US PPI report is expected to show a modest increase of 0.2%.
- The Prelim University of Michigan Consumer Sentiment index from the US is expected to come in at 71.7.
Setups for This Week:
Dow Jones
Primary view:
- Last week's bearish correction likely to continue.
- Key horizontal support at 33,500 points serves as the correction target.
Alternative view:
- Limited chance for a rebound with continued bearish activity more probable.
EURGBP
Primary view:
- Completion of inverse head and shoulders pattern.
- Currently testing the neckline (yellow) and the long-term downtrend line (red).
- Break above these resistance lines would offer a long-term buying opportunity.
Alternative view:
- Possibility of price bouncing off resistance, leading to a downward swing.
USDCAD
Primary view:
- Completion of a double bottom pattern (yellow).
- At a horizontal resistance level (blue) and below the lower line of the symmetric triangle.
- Breakout above these two lines would suggest a strong long-term buying signal.
Alternative view:
- Potential for a selling opportunity if price bounces off these two resistances with the long-term green uptrend line as the target.
