Weekly Market Commentary | 05.08 - 11.08

Monday

• Digesting Last Week's Volatility: Traders are still reeling from the significant market shifts last week, preparing for the new week in a very different market landscape.

• ISM Services PMI from the US: Expected at 51.4, this key figure will provide insight into the health of the US service sector and potential economic direction.

Tuesday

• Interest Rate Decision from Australia: No changes are anticipated, but this decision will offer clues about future monetary policy and its impact on the Australian dollar.

• Construction PMIs: These will offer additional insights into the construction sector's performance, critical for economic projections.

Wednesday

• Job Data from New Zealand: With unemployment expected to rise to 4.7%, this data will be crucial for understanding the labor market and economic health.

• Ivey PMI from Canada: Expected at 60, this figure will indicate the economic activity in Canada's purchasing sector.

Thursday

• Inflation Expectations from Canada: Traders will watch this closely to gauge future inflation trends and potential impacts on the Canadian dollar.

• US Unemployment Claims: As usual, these figures will provide insight into the US labor market's health.

Friday

• Inflation Data from China: This will be a significant indicator of economic health and potential market movements.

• Job Data from Canada: Critical for assessing the labor market, this data will impact trading decisions regarding the Canadian dollar.

This week, the calendar focuses on commodity currencies: the Australian dollar, New Zealand dollar, and Canadian dollar. While the overall calendar may seem light, these releases will be crucial for these currencies. Traders will also continue to digest the significant bearish movements from last Friday and their ongoing effects.

Setups for This Week:

USD/CAD

Primary View:

• The price is currently forming a shooting star pattern on the daily chart at a key horizontal resistance.

• If the day closes this way, it signals a sell with a target on the blue dynamic support.

Alternative View:

• If the price closes above the orange area, it indicates a buy signal.

GBP/USD

Primary View:

• The price continues to decline within the flag formation marked in red.

• As long as this pattern persists, it indicates a sell signal.

Alternative View:

• If the price closes above the upper red line and the upper yellow horizontal resistance, it signals a buy.

EUR/GBP

Primary View:

• The price is breaking the long-term downtrend line marked in red after forming a double bottom pattern marked in orange.

• A daily close above the red line signals a buy.

Alternative View:

• If the price reverses and closes below the red resistance, it signals a sell