Economic calendar

Event	Currency
ISM manufacturing PMI	USD
Canadian Bank holiday	CAD
EUR CPI Flash estimate	EUR

Forex

EURUSD

EURUSD Daily Chart

The pair traded lower before the London session begins. The red 50-day moving average acted as a decent resistance where the price did not manage to break past 3 days ago. We are just 100 pips away from the next major support level at 1.0350 while investors are waiting on the sidelines for the release of ISM Manufacturing PMI later tonight.

USDJPY

USDJPY H4 Chart

USDJPY has made a double top formation on the 4 hour chart and also closed below the 50 period moving average. 134.50 is the first line of support to keep the price near decades high. However, there might be a correction soon as the bullish momentum starts to fade (the slope of upward movement is getting less steep). From the chart, 136,56 seems like a strong resistance to keep the bulls in check.

Precious Metals

XAUUSD

XAUUSD H4 Chart

Gold declined by 1.7% or $31 since the beginning of the week. From a technical perspective, gold made consecutive lower highs and lower lows, which foreshadowed the continuation of a downward trend. The moving averages are also trailing gold prices nicely, and the next key area to watch out for is the recent swing low at $1788. We are currently less than $10 away from that area with PMI data coming out tonight. It is also worth mentioning that today is the first trading day of Q3 so we are expecting some higher volatility to end the week.

Energies

USOIL

USOIL H4 Chart

WTI crude climbed to as high as 114 earlier this week, but the heavy selling pressure came about when the price met the 200-period moving average on the 4-hour chart and turned the tables quickly. At the time of writing, WTI is down almost 2% for the week

The plunge in crude oil prices is said to be caused by the fears and concerns of a global economic slowdown due to widespread inflation and central banks fighting hard to contain them with contractionary policies.

Investors are currently eyeing the $102 key support area. If this breaks, we may see crude trades back to 2-digits. On the other hand, bulls will face significant resistance at the broken bullish trendline and the 200 period moving average.

Cryptocurrencies

BTCUSD

Bitcoin Daily Chart

The situation is looking dire for Bitcoin and Cryptocurrency in general. Bitcoin hasn’t traded past $23k for more than 2 weeks and if we look closer, you can notice the volatility started to die down shortly after the breakout from the blue consolidation zone. Trading at sub $20k, the next support is at the recent low of $17620. If it breaks, we have another support near $16220.

US Stocks

SP500

SP500 Daily Chart

The stock market hasn’t been great for the investors. Today may very well be the fifth consecutive losing day for SP500 should the bears continue to be in charge for the rest of today’s session.

The only mild support that SP500 is getting is from the $3750 area. The bearish channel formation remains solid and we need a break to the upside to signify any trend change.

Welf

Trader, Technical Analyst

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