Daily market review for August 24 2017

EUR/USD is trading around the support level of 1.1800 maintaining an upward momentum. GBP/USD continues to decline, with the pair having overcome the support level of 1.2800 and reached 1.2780. USD/JPY partly compensated for the losses having crossed the resistance level of 109.00 and is trading in the narrow range around 109.20. USD/CHF experienced a mild recovery after yesterday's decline with the pair reaching 0.9660. AUD/USD has remained in the 0.7885 - 0.7912 range in recent days and is currently trading around the 0.7900 level.

Expected news

Today's main event will be the opening of the annual Jackson Hole symposium with the participation of leading economists and heads of central banks. In Switzerland, data on the level of industrial production for the second quarter of this year will be published at 10-15 MSK. The UK will present a second estimate of GDP growth over the past quarter as well as a number of other less significant economic indicators at 11-30 MSK. In the US, data on the number of primary and repeated applications for unemployment benefits will be published at 15-30 MSK. In the late night, at 2-30 Moscow time, Japan will present reference and primary indices of consumer prices for July. There will be no important publications in Australia and the eurozone.

Trading ideas

EUR/USD declined to an important support level of 1.1800, yet maintains an upward trend. We recommend buying call-options from the current level and with a slight decrease below this mark. The local resistance level is at 1.1825. You can consider buying put-options from the 1.1825 level.

 

GBP/USD continues to decline, having broken an important support level of 1.2800. Despite a range of technical indicators showing the pair was somewhat oversold, the fundamental factors remain sufficiently strong and will contribute to the downtrend. You can consider buying put-options from the 1.2800 level. In case the pair continues to decline, you can consider buying call-options from the resistance level of 1.2776.

AUD/USD has been trading in the 0.7885 - 0.7912 range in recent days, maintaining a global downward trend. You can consider buying put-options from the support level of 0.7885 as well as buying put-options from the resistance level of 0.7912.

 

USD/JPY declined to the 108.82 level, after which it significantly strengthened towards the 109.20 level and is consolidating around it. The current resistance level for the pair is at 109.40, while the key support level at 109.00. You can consider buying put-options from the support level of 109.00 as well as buying put-options from the 109.40 resistance level.

 

USD/CHF recovered after the plunge but keeps a downward dynamic, trading near the level of 0.9660. The current resistance level for the pair is at 0.9685, while the support level is at 0.9640. You can consider buying put-options from the 0.9640 level as well as buying put-options from the 0.9685 level.

 

GOLD strengthened to a resistance level of 1290 dollars per ounce and continues the upward trend. The level of resistance for GOLD is at 1293 dollars, so you can consider buying put-options from the level of 1293. The support level is 1287 dollars, so you can consider buying put-options from the level of 1287.

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions.