2021-08-20 • Updated
After an extremely volatile week in the markets, traders await the next steps of the USD and stocks. What drivers will move the assets next week? Lets’ find out!
The main intrigue of this week is connected with the further performance of the US dollar. The USD strengthened last week on the tapering hints by the Federal Reserve. According to the FOMC Meeting Minutes, the Fed will be ready for stimulus reduction before the end of this year. This week, we will see more volatility on the markets as the Jackson Hole Symposium is on the way! The event starts on Thursday, but traders will pay particular attention to Friday's session due to the Fed's Chair Powell speech. If you trade EUR/USD, bear in mind that the whole bunch of the European PMIs are coming out on Monday. If the indicators are stronger than expected, the euro will rise. The key resistance lies at 1.18. In case of more demand for the US dollar, the retest of last autumn’s low of 1.1620 will be inevitable. Also, pay attention to USD/CAD. The pair may reach the resistance of 1.3030 this week.
Investors will continue tracking the performance of indices. Last week, the stock indices dropped heavily with S&P500 (US500) sliding below 4400. The week was even more hurtful for the Asian stocks with Nikkei (JP225) falling below 27,000. The heartbreaking picture of the stock market is a result of the comments on tapering by the Federal Reserve, China’s targeted restrictions of the big tech, and a fresh wave of delta cases across the world. If the stock market remains pressed, JP225 will fall to the next low of 26,200. The resistance is located at 28,300. As for US500, the next support lies at 4320. In case of recovery, follow the resistance of 4430.
The oil prices kept moving within a downtrend last week. The price of XTI/USD inched lower to the support of $61.55. On the upside, the resistance to follow is placed at $64. The price of XBR/USD follows a similar scenario. After reaching $64.50, the next target for sellers may be placed at $61 (200-day SMA). Gold failed to reach the resistance of 1800 last week. Thus, this level remains the first target to follow if the USD weakens. On the contrary, the strength of the greenback will pull the price of the precious metal lower to $1750.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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