Daily market review for August 25, 2017

EUR/USD continues to consolidate in the narrow range around the 1.1800 mark in anticipation of the ECB and the FED heads' speeches. The GBP/USD pair strengthened yesterday to 1.2836, later resuming the downtrend and returning to 1.2800 support. AUD/USD declined to 0.7865 twice, both times returning to an important resistance level of 0.7900. The USD/JPY pair continued to strengthen, reaching the level of 109.77 and is currently trading around the level of 109.60. Inflationary pressure in Japan is still low, which will result in the Japanese yen weakening further. The USD/CHF currency pair continues trading near the 0.9650 mark with minimal fluctuations. Gold declined slightly and is trading around $1,287 an ounce, maintaining an upward trend.

Expected news

The annual symposium in Jackson Hole with the participation of leading economists and heads of central banks remains today's main event. The markets are an anticipation of speeches by Mario Draghi and Janet Yellen. In the eurozone, GDP data for the second quarter and the German economic sentiment index will be published. In the US, durable goods orders July will be released at 15-30 MSK. In the UK, Switzerland, Japan and Australia no important macroeconomic news are expected today.

Trading ideas

EUR/USD is trading near the strong level of 1.1800 maintaining an upward momentum. The closest local resistance level is at the 1.1820 mark, while the support level is at 1.1785. You can consider buying put options from 1.1820 and buying call options from 1.1785.

 

GBP/USD is being corrected upward, with the pair having reached the level of 1.2812. The closest important support levels for the GBP/USD pair are hugging 1.2800 and 1.2780. The local resistance level is at the 1.2830 mark. You can consider buying put options from the 1.2830 mark and call options from levels 1.2800 and 1.2780.

AUD/USD is trading near the key level of 0.7900 following two failed attempts to decline. The resistance level for AUD/USD is at 0.7915, while the support level is at 0.7885. You can consider buying put options from 0.7915 and call options from 0.7885.

 

USD/JPY corrected to the 109.60 level after strengthening to 109.77 and maintains an upward trend. The principal local resistance level for the pair is at the 109.80 level, while the nearest support level is at 109.45. You can consider purchasing put options from the level of 109.80 and call options from the level of 109.45.

 

USD/CHF is trading near the level of 0.9650, having returned to this mark after several minor attempts to decline. The nearest support level for USD/CHF is at the 0.9667 mark, while the pair's support is at 0.9620. It makes sense to consider buying put options from the 0.9667 mark and call options from the 0.9620 mark.

 

GOLD having slightly decreased, is trading around the level of 1,286 dollars per troy ounce. The nearest resistance for GOLD is at 1,289 dollars, while the nearest support is sticking to 1,283 dollars. You can consider purchasing put options from the 1,289 level and call options from 1,283.

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.