ad
Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Risk Appetite Improves Amid A Quiet Day

Aug 20 2019, 03:10 PM (BDT) | Orbex.com

The markets opened to a quiet trading day with no major fundamentals dictating the flows. Economic data was also limited to that from the eurozone. Meanwhile, the US administration was seen giving China’s Huawei a 90-day grace period, easing tensions. Traders remain cautious ahead of the key events this week which focus on monetary policy.

Euro Comes Under Pressure Due to Weak Inflation

The euro currency was seen trading weak on Monday. Economic data on the day covered the final inflation figures for July. Data showed that headline inflation rose just 1.0% on the year ending July 2019. This was slightly below the estimates of a 1.1% increase from flash estimates. Core CPI, however, was unchanged at 0.9% as per the flash estimates.

EURUSD Looks Bearish, with Further Declines Likely

Price action in EURUSD looks increasingly bearish. The bearish flag pattern that is currently forming gives impetus to the bearish view. The downside target is toward the previous lows of 1.1030 with the possibility of a decline towards the 1.10080 region. Any upside will see the resistance level of 1.1140 stalling the gains.

EURUSD

Sterling Maintains Upside Momentum

The pound sterling maintained modest gains on Monday. Lack of any new developments on the Brexit front helped traders to bid the currency higher. A UK spokesman said that preparations were underway for a no-deal Brexit. The details of the no-deal Brexit will be released in a few days time.

GBPUSD Remains Biased to the Upside for Now

The currency pair has been gradually drifting higher, following the upside breakout from the descending wedge pattern. With GBPUSD clearing the support/resistance area of 1.2082, we expect the upside to prevail. However, a lack of momentum could see this to be a potential bull trap. GBPUSD could retest the level of 1.2082 if the bullish momentum fades.

GBPUSD

Gold Extends Declines for the Second Day

The recovering market risk appetite saw gold prices posting declines for the second day. However, the pace of declines is somewhat smaller when comparing to previous gains. For the moment, investors are likely to remain on the sidelines ahead of the big-ticket events this week. These include the ECB and Fed meeting minutes and the Jackson Hole Symposium due later in the week.

Has Gold Formed a Top in the Rally?

The current pace of gains looks to have stalled for the moment. With gold prices forming a lower high, it is likely that the current retracement will see a retest of the breakout level. The support area near 1508 is likely to be tested. This is where resistance will be established in the near term. As long as this holds as resistance, we expect the downside to prevail. The next downside target is at 1485.

Gold

Orbex.com

At Orbex, the client is at the heart of everything we do and everything we do is designed to guarantee your satisfaction. Here’s how Forex Trading with Orbex will enhance your trading experience: Best-in-class customer service, including live chat and free webcall One-hour response time for sales and support requests Multiple asset trading and ECN accounts on MT4 0.9 pip fixed spread at ZERO commission Up to 1:500 leverage
ad