German manufacturing production data as of 4:30 am ET. The euro will be affected this Monday by the production data from Germany, a drop in production is estimated with 65.1 points from 65.9. Euro has been under selling pressure since last August 17. The dollar did not cooperate in the rise of the cross thanks to strengthening in this last week. Forecasts remain at a drop to 1.1620 for next week. Tomorrow’s German data does not promise an increase although it could come with surprises. The projections of the euro could be passed to the buyer above 1.1750.
On Thursday, the high-impact information for the week would be completed with the US GDP data, an increase of 1% in the preliminary US GDP data is estimated. Once again the data could not cooperate with the projections thus favoring the EURUSD cross this Thursday. Finally, the annual symposium of the FED in Jackson Hole is added on Thursday. This event will capture the full attention of the market. This encounter has had an impact in the past. Decisions to accelerate the withdrawal of economic stimulus or not could be the main catalyst on the projection of the dollar this week.
Market projections for the week 23 to 27 August
USDJPY buyer. Above 109.50 buy preference up to 110.0. Above 110.0 the buy pressure will remain until 110.20 and 110.50
EURUSD seller. Below 1.1720 and 1.1740 we expect sell. We could have buy pressure on Monday’s open due to the German data. It will work considering only maximums in the area below 1.1750. Buyers are not considered unless we have major changes over the high impact events of the week.
GBPUSD below 1.37 the price remains in the sell zone. The strategy expect sell below the highs of 1.37 and 1.3660.
AUDUSD seller. This cross is maintained with sell strategies. Below the 0.71 lows we are sell to 0.7070 and 0.7050.
XAUUSD sellers. The preference is sell below 1800. However, the consolidation zone remains above 1780. This coming week the market will be defined if it will begin to hold above 1800.0 the zone or we will continue to sell. Silver will stick to gold movements. Below 24.0 the preference continues to be sell.