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The FxPro Analyst Team

Weak ISM Drove Dollar Down

The US ISM Non-Manufacturing PMI for August, released yesterday, plunged to 51.4, the lowest level since Jan 2010, resulted in the sharp falling of the dollar. The dollar weakened across the board.

The ISM Manufacturing PMI released on 1st September fell below 50. The subsequent Non-Farm Payroll released last Friday was weak. The ISM Non-Manufacturing PMI underperformed again.
We can say that the chance for a Fed rate hike in September has almost gone.

DXY

After the weak US ISM figure was released yesterday, DXY plunged and the uptrend line support was broken; the intra-day fall was 1.15%. the index has turned bearish.
The newly formed resistance is at 95.00, followed by 95.20 and 95.40.

The support line is at 94.73, followed by 94.55 and 94.35.
The 4 hourly Stochastic Oscillator is around 10, suggesting a rebound.

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Gold

As the US ISM Non-Manufacturing PMI underperformed, Gold rallied yesterday and broke the major uptrend line resistance. This morning it further tested the next major downtrend line resistance and retraced.

In the near term, it will likely oscillate in the consolidation range.

The 4 hourly and daily Stochastic Oscillator and CCI indicators are at a high level, suggesting a pullback.

The resistance level is at 1350, followed by 1358 and 1365.
The support line is at 1345, followed by 1340 and 1335.

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EURUSD

After the weak US ISM figure was released yesterday, EURUSD rallied and hit one-week high of 1.1264, broke the downtrend line resistance and the resistance level at 1.1240 with strong bullish momentum. It oscillates in the range between 1.1270 and 1.1240.

Keep an eye on the ECB interest rate decision and monetary policy statement, will be released tomorrow as it may influence the strength of the Euro.

The resistance level is at 1.1270, followed by 1.1300 and 1.1320.
The support line is at 1.1240, followed by 1.1215 and 1.1200.

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USDJPY

After the weak US ISM Non-Manufacturing figure was released yesterday, USDJPY turned bearish and broke the significant 103.00 and 102.00 support lines, fell back into the downtrend channel.
It rebounded before touching the next significant support level at 101.00 as the 4 hourly Stochastic Oscillator is below 20.

The resistance level is at 102.00, followed by 102.40 and 102.70.
The support line is at 101.30, followed by 101.00 and 100.60.

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USDCAD

The Bank of Canada will announce the interest rate decision today at 14:00 GMT. The market expectation is that rates will remain steady at 0.5%.

USDCAD has retraced since 1st September after testing the major resistance uptrend line, as the recent US economic figures underperformed.

Ye the level at 1.2800 is a significant support line. Besides, the 4 hourly and daily time frame Stochastic Oscillator is below 20, suggesting a rebound.

The resistance level is at 1.2850, followed by 1.2910, 1.2950 and 1.3000.
The support line is at 1.2800, followed by 1.2750 and 1.2700.

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NZDUSD

As the US ISM Non-Manufacturing PMI underperformed, NZDUSD rallied yesterday and broke the major resistance level at 0.7380.

The price is moving along the upper band of the Bollinger band indicator, suggesting the bullish momentum has been strengthening. It will likely test the next significant resistance level at 0.7500. Yet the 4 hourly Stochastic Oscillator is above 90, suggesting a retracement prior to the next rally.

The resistance level is at 0.7500, followed by 0.7600.
The support line is at 0.7380, followed by 0.7320 and 0.7250.

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