We do see a reversal pattern for the current uptrend on the EURUSD. The pair made a double top near the resistance level 1.3400 before continuing to drop dropping 80 pips. On the HI chart we can safely say the uptrend ended as we trading is currently below the 55 period exponential moving average.
U.S. data due out this week include retail sales and housing starts for July. Also, Atlanta Federal Reserve Bank President Dennis Lockhart and St. Louis Fed President James Bullard are each scheduled to speak
Res: 1.3435, 1.3415, 1.3400, 1.3365
Sup: 1.3290, 1.3265, 1.3220, 1.3200
As the euro, we see a double top reversal pattern for the cable near the 1.5570 area and a subsequent drop of 80 pips. However itís preferable to wait for a candle close or two below 1.5480 supports to confirm the current uptrend reversal. The importance of 1.5480 is because we find a 8th of August low and the 55 exponential moving average at this level.
Among the important figures this week for the UK include Inflation data on Tuesday and unemployment data on Wednesday
Res: 1.5730, 1.5675, 1.5600, 1.5570
Sup: 1.5480, 1.5385, .1.5300, 1.5200
The previous low for the current downtrend is at 97.75, the fact that Yen failed to drop to the same level making a higher low at 95.90 is considered a bad sign for the downtrend. A rise above 97.00 would confirm a complete reversal which doesnít seem far off now as its currently trading close to that level
The U.S. dollar rise against the Japanese yen arrived after Japanese economic growth figures came in weaker than projected after Japanís Cabinet Office said the economy grew an annualized 2.6% in the April-June period, sharply slower than first-quarter expansion of 4.1%
Res: 98.55, 98.15, 97.80, 97.35
Sup: 95.75, 95.15, 94.70, 93.55
We also see the strength of the dollar against the Aussie. A double top near 0.9200 shows a pause in the current uptrend and we are monitoring if it will hold below 0.9170 support (previous low) which if it does would be another sign of a reversal as a lower low
Over the week the Aussie could see a run towards July highs above 0.9300, given the RBAís likely steady hand in Sep, rising commodity prices and stretched spec positioning
Res: 0.9316, 0.9300, 0.9240, 0.9200
Sup: 0.9100, 0.9050, 0.9000, 0.8971
Currently testing 1331 resistance, this could has been rising the past 4 sessions ever since hitting a low of 1270, with the sharpest gains during the 8th of August (25 dollar rise) and today (17 dollar rise so far).
The advance comes as heavyweight gold exchange-traded fund logged its first increase in holdings since June. Higher-than-expected import growth in China indicates a domestic-demand recovery, which will bode well for gold demand
Res: 1376, 1360, 1348, 1331
Sup: 1300, 1288, 1270, 1264