We’ve got consumer confidence and durable goods orders data coming in from the U.S. today!
Could these reports push this dollar pair around?
Before moving on, ICYMI, today’s Asia-London session watchlist looked at a neat trend pullback setup on AUD/JPY ahead of BOJ Governor Kuroda’s speech. Be sure to check that out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. to keep travel restrictions in place due to Delta variant
Bitcoin fell back below $40K after Amazon denied plans to accept BTC payments
Australia’s Victoria state to ease some lockdown measures
Sydney reports new record level of COVID-19 daily cases
South Korean economy grew by fastest pace in a decade at 0.7% in Q2
North Korea and South Korea to resume communication via military lines
Asian markets pulled lower by heavy selling of Chinese internet firms
Upcoming Potential Catalysts on the Economic Calendar:
U.S. headline and core durable goods orders at 12:30 pm GMT
RBA Deputy Governor Debelle’s speech at 12:35 pm GMT
U.S. CB consumer confidence index at 2:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: USD/CHF
This pair has been consolidating inside a descending triangle, and price is closing in on the floor around .9140.
Is USD/CHF a buy or a sell?
Upcoming mid-tier reports from the U.S. could spur either a bounce or a break, depending on their outcome.
Analysts are projecting mixed results from the durable goods orders report, with the headline reading slated to advance from 0.3% to 0.8% and the core figure to dip from 2.3% to 2.1% in June.
Later on, the July CB consumer confidence index might print a decline from 127.3 to 123.9 to reflect weaker optimism. Fears about the Delta variant likely contributed to a dip in confidence for this month.
Still, stronger than expected results might be enough to keep the Greenback afloat, allowing the triangle bottom on USD/CHF to hold. If that’s the case, the pair could recover to the triangle top near .9200.
A break lower, on the other hand, could be followed by a selloff that’s the same size as the triangle chart pattern or roughly 120 pips.
Stochastic is hinting at a bounce, but the moving averages seem to be prepping for a bearish crossover. Better keep your eyes peeled for any clues from the candlesticks!
