Soon Bullish Rally for Gold
The winter is coming, and risky markets expect a rally to come with it. Will this December be bullish for stocks, crypto, and gold? A pack of news will surely help you out.
What drives the market on September 7?
Fundamentals
The US dollar has started the week on the positive footing after the upbeat Friday’s NFP. The greenback had steadily risen after the report. However, later on, it lost some of its gains as the US stocks reversed from huge losses. Stocks started sharply dipping down on Thursday. It happened because of the investors’ concerns over the recent tech boom, which might be overvalued. According to Bloomberg, the tech stocks’ rally wasn’t supported by the widespread investor sentiment, in the opposite, it was caused by large options trades from one company. The Financial Times claimed that SoftBank bought billions of dollars in tech derivatives ahead of the fall of the stock market. Therefore, traders now try to find out the fair price for stocks.
S&P 500
Let’s have a look at the S&P 500 chart. It has steeply dropped after touching the all-time high at 3 575. The stock index has just broken the key support of 3 400 and keeps falling down. If it manages to break through the next support of 3 350, which it has touched a few times during August, the way to 3 330 will be open and then to 3 315. In the opposite scenario, the move above the high of August 25 at 3 445 will drive the price towards the next resistance of 3 480.
EUR/USD
Let’s move on to EUR/USD. The pair is dipping down amid the stronger USD and worries about the upcoming ECB meeting on Thursday, which is interested in the lower euro. The move below the significant support of 1.1800 will push the pair down to the next one at 1.1770. Otherwise, if it jumps above Friday’s high of 1.1860, the doors to 1.1900 will be open.
Gold
As for gold, the yellow metal has failed to break out the triangle so far. If it drops below the support of $1 925, it may fall even deeper to the low of August 26 at $1 910. In opposite, the move above $1 950 will be the pivotal point and will drive the pair to $1 970.
USD/JPY
Finally, let’s discuss USD/JPY. The pair is edging higher amid the stronger greenback. If it breaks through the high of August 26 at 106.50, it will surge to the next resistance of 106.70. Otherwise, the move below the support of 106.10 will drive the price to the key psychological mark of 106.00.
Similar
US Dollar Might Get Under Pressure After These Events
Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.
November 23: Heaven for Day Traders
This Wednesday will be heaven for day traders. A considerable number of events will make the market volatile. Don't miss it!
Latest news
Two Central Banks Will Grab Traders’ Attention
The central banks' meetings will highlight the week as well as the PPI release
Get Ready for the NFP Release
Good Friday, traders! The markets are frozen ahead of today's NFP release at 15:30 GMT+2…
US Dollar Index at a 3-month Low
The USD weakened after Fed Chair Powell hinted at a slowdown of rate hikes, and stocks strengthened. What else is moving the markets today?
