The US GDP data beat estimates giving boost to the US Dollar which has started to gain strength, rallying against most of its peers. The GBPUSD, EURUSD, NZDUSD have been flirting with 3 month lows riding on the Greenback’s strength. The EURUSD continues to move in a tight range between 1.3220 and 1.31565. The down gap that was formed last week is yet to be filled. With the lack of any major market moving events from the North American session, the EURUSD is expected to end the week within this range high and low.
As today marks the last trading day of the month, we can expect to see some wide ranging profit booking taking place across the majors.
Guest post by John Benjamin at Orbex
Fundamentals Recap – August 28th, 2014
- Second quarter preliminary GDP in the US expanded at 4.2%, above median consensus of 3.9% and up from 4%. Greenback continues to gain ground against most of its peers.
- Russia-Ukraine turmoil continues to dampen spirits as investors turn to safe haven currencies in a risk-off sentiment.
- Pending home sales data m/m expands 3.3%, above median estimates of 0.6%
Fundamentals – August 29th, 2014
- Japanese inflation unchanged at 2.7% while unemployment ticks higher to 3.8%
- Eurozone Flash CPI estimates y/y at 0.3% in line with median estimates and a decline from 0.4% previous reading
- Canadian GDP due to be released at 1530 (GMT+3) with median estimates calling for a decline in GDP to 0.2%, down from 0.4% the previous month
- US Chicago PMI to be released at 1645 (GMT+3) with median estimates calling for an increase to 58.6, up from 52.6 previously
EURUSD – Daily Pivots
We notice a strong confluence of the Daily Support 1 and the Monthly Support2 at 1.31531 and 1.31513. Any downside moves are likely to struggle at this level before we see any further breakdown.
EURUSD – Caught between the range for most of this week
EURUSD – Technical Signals (Daily)
|EMA (200)||Price Below EMA|
|EMA (100||Price Below EMA|
|EMA (200 – 100)||Bearish Crossover, with 100 EMA below 200 EMA|
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