Trading plan for 27/08/2018
At the very start of the trading, the dollar deepened the Friday decreases resulting from the lack of hawkish mentions in Powell’s Jackson Hole. EUR / USD violated 1.1650 and USD / JPY began testing 111.00. Over time, the dollar has regained some of the field in a sleepy atmosphere that will probably continue due to a holiday and a day off work in London.EUR / PLN will start the day from around 4.2750. The Asian stock markets have clearly positive sentiment. Nikkei 225 grows about 1 percent, but about 2.0% are growing Shangahi Composite and Hang Seng. Futures on SP500 after Friday, around 0.5% up already and is rising by a further 0.25 percent up to 2883 points The one-ounce gold week starts at $ 1207. WTI crude oil is priced at USD 68.75 per barrel.
The new week in the markets should start sluggishly due to a bank holiday in the United Kingdom on Monday. In Europe, the mood of German entrepreneurs (Ifo) and preliminary inflation estimates will be under the microscope. The market participants expect Ifo Business Climate Index to increase from 101.7 to 101.9, Ifo Current Assessment to remain unchanged at 105.3 and IFO – Expectations to increase from 98.2 to 98.4.
There are other important events this week. In the US, it will be interesting whether consumer optimism continues to record high. In addition, PMI from China and GDP from Canada can attract attention.
EUR/USD analysis for 27/08/2018:
Let’s take a look at the EUR/USD technical picture at the H4 time frame. The market has made a new local high at the level of 1.1655 and is still moving inside of the upsloping channel. The nearest technical support is seen at the level of 1.1529 and 1.1506. Please notice, the clear bearish divergence between the price and the market momentum, that suggest an incoming corrective pull-back. On the larger time -frame charts the main trend is still bearish.