Chinese markets were closed for most of last week and is set to return to business on Monday. Investors will be cautious with the main question being if the Shanghai Composite will stabilize from its recent sell offs, or the volatility bearish declines would resume. The Euro closed the week on a bearish note as the ECB's monetary policy last week showed a downward revision to Eurozone GDP and inflation forecasts. The single currency took a hit as ECB President; Mario Draghi commented that the European Central Bank would keep its options open for extending its QE program beyond September of 2016. On the weekly charts, EURUSD is consolidating within an ascending triangle, a technical pattern that often precedes a volatile break out, usually to the upside. Resistance for the ascending triangle sits at 1.1485. A break above this resistance could see a measured targeted move to as high as 1.2097 in the medium - long term. To the downside, in the event that the rising trend line is broken, EURUSD could test the support at 1.0829. We could expect to see EURUSD consolidate for the most part until the FOMC meeting due on 17th of September.
September Rate Hikes Back on the Table
Weekly Report - 06/09/2015