Trading plan for 10/08/2017:
RBNZ left the monetary policy parameters unchanged, so the NZD is the biggest loser across the board. Another down session hit the Asian stock market: Hang Seng lost -1.0%, and Shanghai Composite and Nikkei 225 lost -0.8%. The precious metals are gaining on negative sentiment - Gold is up 0.12% at $1278, Silver is up 0.3% and Palladium is up 0.25%.
On Thursday 10th of August, the event calendar is quite busy with important economic releases. First, France will post Industrial Production data, then the UK will present Industrial Production, Manufacturing Production, and Visible Trade Balance data. During the US session, Canada will reveal New Housing Price Index and the US will post PPI and Core PPI, Unemployment Claims and Continuing Claims data.
GBP/USD analysis for 10.08/2017:
The Industrial and Manufacturing Production data are scheduled for release at 08:30 am GMT and the market participants expect Industrial Production to increase 0.1% on monthly basis after -0.1% dip last month. Manufacturing Production is expected to increase slightly as well, from -0.2% last month to 0.0% in July. On yearly basis, the Manufacturing Production is expected to increase from 0.4% to 0.7%. The recent set of data from the UK was not really particularly good and there are still some uncertainties regarding the result of the Brexit negotiations and post-Brexit economic performance. Moreover, the recent tensions between the US and North Korea might cause deeper risk-off sentiment and then the global investors will quickly buy reserve currency, the US Dollar, and abandon the British Pound. It is worth to have is in the back of the head these days.
Let's now take a look at the GBP/USD technical picture at the H4 timeframe. The market failed to break out above the technical resistance at the level of 1.3031 and now the price is moving lower towards the next technical support at the level of 1.2932. IF the data will be worse than expected, then this level will be tested and possibly violated with ease. The next technical support is seen at the level of 1.2811.
Market Snapshot: AUD/USD at the critical support
The price of AUD/USD is currently trading at the technical support at the level of 0.7874 as the bulls are still trying to push the prices higher. Nevertheless, the upside momentum is diminishing and it is possible the price will move down towards the next support at the level of 0.7838 despite the oversold market conditions.
Market Snapshot: Gold breaks above 78% Fibo
The price of Gold is gaining on the negative sentiment and it breaks above the 78%Fibo at the level of 1275 making the level of 1280 a new local high. The momentum indicator is still pointing to the upside, so if the bulls will keep pushing the price higher, then the recent swing high at the level of 1296 is next to be tested.
