Other economic highlights for today (08/23/2018)

We get the European preliminary PMI’s and ECB is to publish the account of its last monetary policy meeting (European session).

From the US we get the preliminary PMI’s and the new home sales figure (American session). Also, we get Euro-zone’s preliminary consumer confidence indicator.

Australian political instability rises!

PM Malcolm Turnbull, faces the possibility of a second leadership vote within the Liberal party as three ministers deserted him so far. After a leadership vote, and after a calling for a second leadership vote, ministers deserted the PM. Currently parliament has been adjourned, if we see any further escalation we could see the Aussie weakening.

AUD/USD dropped steeply today, breaking the 0.7325 support line. We could see the pair stabilising today… We could see it breaking the 0.7325 resistance line. On the other side, we could see the pair breaking the 0.7265 support line and aim for the 0.7200 support area.

FED’s minutes – US dollar rallies

On the last Fed’s meeting minutes US dollar rallied. There are many headlines that continues to weigh on the US dollar. One of the headlines is connected to the guilty plea of Trump’s former lawyer Cohen weighs on the presidency, as he implicates president Trump in crime activities. Currently the president Trump lashed out on his former lawyer. Also, in future we could see the US dollar weakening.

EUR/USD dropped yesterday and today is breaking the upward trend-line (during Asian session), aiming for the 1.1537 support line. On one side, we could see its price action aiming for the 1.1623 resistance line. On the other side, we could see it breaking the 1.1537 support line and aim for the 1.1482 support barrier.