Forex Signals Brief for Aug 29: Risk Sentiment Still off – Trade War in Play
Arslan Butt • 2 min read
Despite lack of economic events from the United States, the US dollar traded bullishly. However, the strength of the greenback has long been a thorn in President Donald Trump’s side. His utmost intentions are to make it weaker. But the current situation has put the almost unthinkable scenario of currency intervention up for debate in global foreign exchange circles.
The greenback climbed 0.2%, making gold more costly for owners of other currencies, while US stock markets climbed into positive territory.
On Wednesday, the yellow metal gold eased to trade sideways as the US dollar climbed and as traders secured profits following a more than 1% rise in the last session. But risk over the U.S.-China trade conflict and the global economy kept the safe-haven bullion near a multi-year high.
Today, the calendar is fully loaded with high impact economic events, where the Eurozone manufacturing and services PMI figures and the US GDP data are on top of the list.
Forex Signal Update
GOLD – XAU/USD – Signal
The risk-on sentiment is still on amid the trade war between the US and China. With that, gold continues to stay supported over the boosted safe-haven appeal. Gold seems bullish above 1537 as it’s been holding above this level since US session. At the same time, 14 periods EMA is signaling a bullish trend, while supporting gold around 1537. Immediate resistance is at 1544 and closing above this level is likely to bring more buyers until 1554.
So we are staying bullish above 1543 today and so far the market is in our favor.
GBP/USD – Pending Signal
GBP/USD has continued to push higher in recent days, lifted by some positive Brexit talk. It is now getting to the point where there is speculation in the WSJ that shorts are looking to cover. So this will be a trade to watch going forward.
GBP/USD – 240min.
AUD/USD – Pending Signal
The Aussie continues to drop further over poor construction data, stronger trade war sentiments and a weaker private capital expenditure which slipped from 0.4% to -0.5%, adding more bearish pressure on Aussie. We will be looking to take a sell position somewhere around 0.67500.
AUD/USD – 240min.
BTC/USD was facing solid support around 9,790 which has now been violated amid massive sell-off. For now, BTC/USD has an open room for 9,476 and 9,300. Let’s keep an eye on 9,790 as it can stay bearish below this level today.
BTC – 240min.