Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Wall Street ended on a positive note on Monday ahead of the midterm elections in the United States, the elections will determine who gets to control the House. People in the United States head to the polls which are scheduled for November 8, all 435 seats in the House of Representatives are up for election, along with 35 Senate seats and 36 state governors. Meanwhile, more than 43 million ballots have already been cast ahead of Election Day. Currently, the Democrats control the House of Representatives but only by a small margin. 51 seats are required for a political party to have control in the Senate, while 218 are needed to achieve a majority in the House.

EQUITIES

European shares and US futures trades flat on Tuesday Morning as investors cautiously awaited the results of the US midterm elections Shares of the ride-hailing company Lyft (NASDAQ: LYFT) plunged more than 12% in after-hours trading after the company failed to impress investors with the third-quarter earnings results.

OIL

Crude oil futures slightly reversed from the previous session's gains after China reaffirmed its commitment to the zero-Covid policy on Monday, as investors were worried that the country’s widening Covid-19 curbs will hurt demand.

CURRENCIES

In the currency market, the U.S. Dollar Index measures the performance of the dollar against a basket of currencies that slightly recovered from the early lows. On the other hand, the NZDUSD retreats from the fresh weekly highs but remains the strongest currency pair of the week.

GOLD

The safe-haven metal reversed from the highs as investors are treading cautiously ahead of Thursday's release of the consumer price index reading for October, which will provide hints to the Federal Reserve`s plans for future monetary tightening. As of this writing, the metal trades below $1670

Economic Outlook

On the data front, German industrial production rose surprisingly in September, official figures published on Monday showed. Industrial production in Germany in September increased by 0.6 percent month-on-month, the Federal Statistical Office said on Monday.

Coronavirus update:

Worldwide, more than 632 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 97.7 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: Technically the current price action signals suggest that a short-term bullish trend remains intact. If the bullish momentum continues, then the next upside level is to watch at 1.0050 and 1.0090. On the downside, any meaningful pullback now seems to find some support near the 0.9950 zones, below which the slide could further get extended towards the 0.9930 and 0.9900 regions.



The important levels to watch for today: Support- 0.9950 and 0.9930 Resistance- 1.0050 and 1.0090.

GOLD: In the short-term perceptive, the immediate bias will remain bullish as long as prices are held above $1660. On the flip side, any break below $1660 then the next support near the $1652 followed by $1638 level.



The important levels to watch for today: Support- 1660 and 1652 Resistance- 1675 and 1682.

Quote of the day - “The individual investor should act consistently as an investor and not as a speculator.” – Ben Graham.

Read more - https://gulfbrokers.com/en/daily-market-report-575

 

[syamfx2020]

Global stocks and precious metals ended last week on a positive note. The investors were in a buying mood after the most awaited US inflation number unexpectedly dropped to 7.7% in October, below the 8% priced in, and its lowest level since January and the market participants expect the Federal Reserve to revert back to a 50bp rate hike at the bank’s December FED meeting.

This week is inactive in terms of monetary policy, with no significant central banks due to meet. The main attraction for this week is the retail sales figures from the US, China and UK. On the other hand, Investors should continue to monitor the series of inflation data from the UK, Canada, and Japan scheduled across the week.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Walmart, Nvidia, Target and GAP.

GOLD

The precious metal registered strong gains for the week after the US Treasury yields fell sharply in response to the lower-than-expected CPI readings, which also spurred an intense rally in precious metals. The metal started the new week flat but trades steady above $1760, supported by a continued decline in USD. A few of the key factors the gold traders should monitor this week is the US housing data and the trend of the dollar index.



The technical scenario is absolutely bullish after the last two weeks bullish sentiment. While considering the recently bullish momentum the metal may find strong resistance this week above 1790. On the downside, any meaningful pullback now seems to find some support near the 1755 zones, below which the slide could further get extended towards the 1746/40 regions.

DOLLAR INDEX

The U.S. dollar index which measures the greenback against major peers collapsed more than 2% last week against its major peers after October's US inflation data falls well short of market expectations. However, the greenback slightly recovered on Monday morning from the previous week's sell-off while the overall momentum remains bearish. The main attraction for the Dollar this week is the US retail sales, Housing data and PPI numbers.



Technically the overall trend looks bearish after last week's heavy selling pressure and the medium-term support is still around 106. If the index pair breaks and closes below this level the next important support is at 105.60. However, if the pair find some support above 106.80 again we may see a short-term retracement to 107.30/40.

EURUSD

EURUSD hit a fresh 3-month high of 1.0350 as the Euro traders took advantage of the weaker US dollar. This week, Euro traders will now look to the Eurozone inflation data due on Thursday for more clues on the future path of European central bank monetary policy. During the last week, Germany released the latest inflation data. The data showed, in October German inflation climbed to 10.4%, its highest in about seven decades.



EURO ended on Friday near the short-term resistance zone of 1.0370/80. In case the pair manages to settle above this area, it will gain upside momentum and head towards the next resistance level at 1.0400 and 1.0450. On the downside, in the short-term the first immediate support at 1.0300 followed by 1.0260.

DOW JONES

Dow Jones and other US indices ended last week firmly in positive territory following the US inflation report offered hope that the Federal Reserve will ease the pace of its interest-rate increases. The indices received additional buying pressure after China eased some Covid restrictions sparking gains for US-listed Chinese stocks. This week, the Dow traders will now turn their attention to the Q3 big retail earnings results from Walmart, Target, Macy’s, and Kohl’s.



This week, the first resistance is located around 34,000, a break above this level will confirm a possible move to 34,300/500. On the downside, any meaningful pullback now seems to find some support near the 33,300 zones, below which the slide could further get extended towards the 33,000 and 32,600 regions.

Read the detailed report with the chart here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-55

 

[syamfx2020]

Shares of the largest residential solar and battery storage provider in the U.S. Sunrun (NASDAQ: RUN) stock soars more than 35% in the last 3 weeks. While on Monday, the stock dropped almost 7% from the previous week's highs. As of this writing, the stock trades at around $28.80.

Sunrun is a provider of residential solar panels and home batteries in America. They currently provide over half a million homes with clean energy and allow homeowners to pay for the power, not the panels.

Sunrun Q3 earnings review

Shares of the clean energy company breaks above $30 last week. The strong upside momentum was boosted by better-than-expected third-quarter financial results. The company reported quarterly earnings of $0.96 per share and revenue of $631.9M in the last quarter, up 44% from $438.8m for the same period in 2021. During the third quarter, Sunrun Installed 255.8 Megawatts of Solar Energy Capacity and added 35,760 customers.

"Sunrun continues to become faster, better, and stronger, delivering a quarter that demonstrates the financial value we can create for our customers and shareholders, leading the market and now serving over 760,000 customers” – Sunrun CEO Mary Powell said.

$RUN Technical outlook

The stock traded with a bid tone for the entire last week, with some weakness seen only on Friday. The technical picture looks solid after the stock found strong buyers again below $20. In the short-term, if the upside momentum continues the next immediate resistance area near $32/34.40. For the long-term, $34.50/35 remains the key resistance to watch, the bullish breakout of $35 is likely to push the $RUN into a new trading zone, which may offer further buying opportunities until $40 then $44. On the downside, $26.40 is the immediate support level, followed by $25. If the stock breaks below $25, the slump will quickly extend toward the $23.20/21 mark.

Read more - https://gulfbrokers.com/en/sunrun-snaps-3-week-winning-streak-can-the-stock-continue-its-run

 

[syamfx2020]

Dow Jones and other key US indices made a strong rebound in the last couple of weeks. The recent bullish sentiment was boosted by after the US consumer price index came in at 7.7 per cent in October, the smallest 12-month increase since January and down from an annual rate of 8.2 per cent in September. The CPI data was fueled by speculation that the Federal Reserve would slow the pace of interest rate tightening from December.

4 reasons behind superb recovery for US stock indices

• Strong rebound in U.S. gross domestic product (GDP) in the third quarter.
• Dovish comments from the FED policymakers.
• Cooler than expected US inflation data.
• Robust earnings from the banking and airline giants have also lifted market sentiment.

Dow Jones reached a fresh monthly high near $34,000 this week. While considering the strong momentum the index has not been able to attract new buyers so far this week. On Tuesday, the index initially rose after the US reported cooler-than-expected PPI data and better-than-expected Q3 earnings results from the retail giant Walmart. While the Dow retreats from the highs later due to fresh geopolitical tensions amid unconfirmed reports that Russian rockets had crossed into NATO-member Poland.

Many market participants are trying to discern whether this recovery is the start of a year-end rally or merely a temporary respite. Moving ahead, the Dow traders should continue to focus on the Q3 earnings results and the economic releases which include the US retail sales and housing data. On the other hand, traders should also likely keep a look at rising covid cases in China and many other parts of the world.

DOW JONES Technical outlook

From a technical perspective, the overall momentum remains bullish. However, the price is struggling to get above the resistance at 34,000 and has already rejected the level on lower timeframes. In the short term, If the bullish momentum continues the first key resistance remains near 34,000, a break and close above this level will confirm a possible move to 34,300/400. On the downside, the 33,500/400 area aligns as key support, and a daily close below that level could open the door to the next support level which is located near 33,200 and 33,000. The $33,000 mark is a major support level, failure to defend the mentioned support level has the potential to drag the pair further towards the 32,400/200-support zone.

Check out the detailed analysis with chart here - https://gulfbrokers.com/en/dow-jones-struggles-to-break-above-34000

 

[syamfx2020]

The semiconductor giant NVIDIA Corporation (NASDAQ: NVDA) is scheduled to report its third-quarter earnings results on Wednesday, November 16 after the market closes. The company is expected to post quarterly earnings of $0.71 per share and revenues are expected to be $5.8 billion.

$NVDA bounced almost $60 after the stock reached a new 52-week low of $108.13 in October. It will be interesting to see whether the stock will continue the upside momentum or not after the company announce the third-quarter results.

$NVDA key technical levels to watch today:

Support: $160 and $156

Resistance: $183 and $192

EQUITIES

European shares and US futures trades slightly lower on Wednesday morning after a Russian-made missile hit Polish territory and killed two civilians. Meanwhile, US President Joe Biden said it was “unlikely” to have been fired from Russia.

On the earnings front, Walmart stock closed almost 7% higher on Tuesday after the company beats expectations for Q3 earnings and revenue. The better-than-expected results were driven by strength in Walmart’s food business, underpinned by strong consumer demand for lower-priced groceries.

OIL

Crude oil futures rebound from previous declines amid geopolitical tensions and a large draw in crude inventories. The latest API inventory report showed the US crude inventories fell by 5.8 million barrels for the week ended Nov. 11.

CURRENCIES

In the currency market, The Euro's uptrend against the USD is losing momentum after the strong rally. On Tuesday, EURUSD breaks above 1.0400 of broad-based weakness in the dollar and hawkish comments from the ECB board member Francois Villeroy de Galhau. Villeroy said the central bank will probably keep raising interest rates beyond 2%. Meanwhile, the British pound remains volatile s following the release of hotter-than-expected UK inflation data.

GOLD

The safe-haven metal slightly retreats from the previous session highs. However, the overall momentum remains bullish supported by rising geopolitical tensions. On Tuesday, the metal hit a fresh monthly high of $1785 after the US Dollar comes under renewed selling pressure.

Economic Outlook

On the data front, the UK released the latest inflation data. The data showed the Consumer Prices Index hit 11.1 percent in October, reaching the highest level since 1981, the Office for National Statistics (ONS) said in a statement on Wednesday.

Moving ahead today, the important events to watch:

US – Retail sales: GMT – 13.30

US – EIA crude inventories: GMT – 15.30

Coronavirus update:

Worldwide, more than 636 million people have been confirmed infected and more than 6.60 million have died. The United States has confirmed over 97.7 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: The currency pair slightly retreats from the weekly highs. On the downside, the decline is more extensive, and it will be hard to rule out a retreat towards 1.0350 the 1.0270. On the upper side, 1.0500 is the key resistance zones to watch.



The important levels to watch for today: Support- 1.0370 and 1.0350 Resistance- 1.0430 and 1.0470.

GOLD: In the short-term perceptive, the current price action signals suggest that the bullish trend remains intact. If the bullish momentum continues the next upside level to watch is $1786/88 then $1792/93. On the downside, any meaningful pullback now seems to find some support near the $1775 zones, below which the slide could extend further towards the $1770/68 regions.



The important levels to watch for today: Support- 1775 and 1768 Resistance- 1786 and 1793.

Quote of the day - “Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.” — Benjamin Graham.

Read more - https://gulfbrokers.com/en/daily-market-report-576

 

[syamfx2020]

The pound held steady against the U.S. dollar on Thursday Morning as inventors anxiously waiting for the UK’s fiscal plan. UK Chancellor Jeremy Hunt will deliver the autumn statement in the House of Commons on Thursday. The statement is expected to include several tax rises and spending cuts, around 55% of the measures will be spending cuts and 45% will be tax rises. Jeremy Hunt has already hinted he could let local authorities increase council tax as he looks to fill a £60bn fiscal black hole.

Meanwhile, on Wednesday the currency pair ended flat after the latest UK consumer inflation report showed yet another increase in October. Inflation rose to 11.1 per cent in October – the highest in 41 years.

EQUITIES

US stock futures recovered from the early lows supported by stronger-than-expected US retail sales data. Meanwhile, the upside momentum is limited due to the release of disappointing earnings results from TARGET and mixed comments from the US Federal Reserve (Fed) policymakers. Fed President Esther George and Fed Governor Christopher Waller both advocated for modest future rate rises. Christopher Waller said he was becoming more comfortable with the next rate rise being 50 basis points rather than 75 points.

OIL

Crude oil prices remain under pressure despite the release of a large crude inventory build and a weaker dollar. The oil traders remain concerned over rising Covid-19 cases in China, which could dent demand for oil as travel is restricted. On the other hand, the EIA inventories report showed yesterday a decline in crude oil stocks of 5.4 million barrels.

CURRENCIES

In the currency market, AUDUSD rebounded back to above 0.6740 after October's robust jobs data. The October employment figures, Australia’s jobless rate has dropped back to 3.4 per cent after 32,200 jobs were added to the Australian economy and the participation rate remained at 66.5 per cent.

GOLD

The safe-haven metal slipped to a fresh weekly low on Thursday morning as concerns over geopolitical tensions eased. On Wednesday, NATO and Poland concluded a missile that crashed in Poland was probably a stray fired by Ukraine’s air defences.

Economic Outlook

On the data front, US retail sales rose at a stronger pace than expected in October, the US Census Bureau reported on Wednesday. Retail sales in the US surged 1.3% in October, beating market forecasts of a 1% gain.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 13.30

US – Philly FED manufacturing index: GMT – 13.30

Coronavirus update:

Worldwide, more than 636 million people have been confirmed infected and more than 6.60 million have died. The United States has confirmed over 97.7 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today, the key resistance is located for the pair around 1.0430, a break above this level will confirm a possible move to 1.0460/70. On the downside, any meaningful pullback now seems to find some support near the 1.0350 zones, below which the slide could further get extended towards the 1.0300 regions.



The important levels to watch for today: Support- 1.0350 and 1.0310 Resistance- 1.0430 and 1.0470.

GOLD: For today, $1760 remains the first immediate support level, followed by $1756. If the metal breaks below $1756, the slump will quickly extend toward the $1750/46 mark. On the flip side, the first resistance at $1774/75 any break above this level will open at $1780/83 minimum.



The important levels to watch for today: Support- 1760 and 1756 Resistance- 1774 and 1786.

Quote of the day - “Investors should always keep in mind that the most important metric is not the returns achieved but the returns weighed against the risks incurred. Ultimately, nothing should be more important to investors than the ability to sleep soundly at night.” — Seth Klarman.

Read more - https://gulfbrokers.com/en/daily-market-report-577

 

[syamfx2020]

Commodities, precious metals and US stock indexes ended mixed last week after several Federal Reserve officials flagged the likelihood of continued aggressive monetary tightening despite the soft inflation signals.

Moving ahead, this week the trading will be thinned out for the last two days and liquidity is expected to remain low as US financial markets are closed on Thursday and a half-day on Friday for the Thanksgiving holiday. The main event on the calendar for monetary policy this week is the meeting of the Reserve Bank of New Zealand on Wednesday. On the other hand, one of the other important events for this week will be the FOMC meeting minutes, which will be released on Wednesday and we could expect to hear comments from the FED policymakers throughout this week.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Dell, Zoom, Best Buy and Dollar Tree.

GOLD

The precious metal extends its decline on Monday morning and the overall sentiment lacked any clear direction since the mid of last week. However, the overall momentum remained bullish throughout this month after the latest data showed that US inflation cooled off a bit in October, lifting hopes that the Federal Reserve would adopt a less aggressive approach to rate hikes. This week, the main drivers for the precious metal remain the comments from the FED policymakers and the movement of the US dollar.



Technically the current price action signals suggest that a short-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1732 and $1726 if the bearish momentum continues. On the flip side, the metal needs to stay above $1760 to have a chance to develop upside momentum in the near term. If the metal breaks and closes above $1760, the next upside level to watch is $1774 then $1780.

DOLLAR INDEX

The greenback started the new week on a positive note supported by hawkish comments from Federal Reserve officials had fuelled bets that US central bank is still far from pausing its rate-hiking cycle. This week, traders and investors should pay attention to an important event for the USD this week, the FOMC meeting minutes on Wednesday.



For this week, 107 is the immediate support level, followed by 106.80. If the pair breaks below 106.80, the slump will quickly extend toward the 106.40/20 levels. On the upper side, USD is likely to find immediate resistance at 107.80, any break above the 107.80/90 level could lead the prices of the dollar towards the next resistance level of 108.50.

EURUSD

The currency pair started the week with considerable losses. A hotter-than-expected inflation report in the Eurozone brought pressure on the currency pair by the end of the week and ended slightly lower on Friday. For Euro, the main attraction for this week is the latest PMI data from the German and Eurozone.



Technically the overall momentum remained mixed for the pair after the bulls failed to extend the rally. For this week, 1.0200 is the immediate support level, followed by 1.0180. If the pair breaks below 1.0180, the slump will quickly extend toward the 1.0130/00 mark. On the upper side, in case the pair manages to settle above 1.0300, it will gain upside momentum and head towards the next resistance level at 1.0350 and 1.0400.

DOW JONES

Major stock indices and Dow jones struggled to regain momentum last week as the global trend as the risk-off mood dominates. Meanwhile, a busy Q3 earnings season is largely over while there are few earnings of broad significance due this week. This week, the FED minutes from its October meeting will likely have a significant effect on the Dow Jones and other US indices because the minutes will hold more clues on the pace and size of future rate hikes.



The technical picture looks weak after the index formed a double top near 34,000. For this week, 33,100/000 will act as an initial cushion, any break below this area will open doors to 32,600/400. On the flip side, the bullish breakout of 34,000 is likely to push the Dow into a new trading zone, which may offer further buying opportunities until 34,500/600.

Check out the detailed weekly analysis here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-56

 

[syamfx2020]

The dollar index, which tracks the currency against key rivals ended higher for the third consecutive day on Monday supported by upbeat US macroeconomic data and the greenback received additional buying pressure last week after the hawkish comments from the Fed policymakers. While today the index retreats back to below 107.50 after the pair failed to break above the key resistance of 108. On the downside, if it continues the bearish momentum, the slump will quickly extend toward the 107 and 106.80.60 marks. On the flip side, the resistance for the USD appears to be around 108. If the price break and closes above this area, the next upside level to watch is 108.40/50.

EQUITIES

US stock futures notched up small gains on Tuesday Morning, but the upside pressure clearly weakened amid a solid ceiling in place. Moving ahead, one of the key factors the investors and traders should monitor this week is the October FED meeting minutes and US durable goods orders data on Wednesday.

On the earnings front, Best Buy and Dollar Tree are amongst those reporting the last quarter's financial results today.

OIL

Crude oil prices regained momentum after a steep drop in a volatile previous session. The oil prices plunged on Monday following a report that OPEC+ was considering an output increase next month. While Saudi Arabia denied the recent reports about discussions being held with regard to oil output increase.

CURRENCIES

In the currency market, the New Zealand dollar remains one of the strongest currency pairs this month, focus shifts to Wednesday’s RBNZ meeting. On the other hand, the EURUSD recovered from the previous session's lows. Technically, the short-term trend remains supportive while If the US dollar regains further upside strength this week, we could see an extension to the weakness in the euro.

GOLD

The safe-haven metal struggling to regain upside momentum. The recent strong bearish sentiment fueled by comments of several FED policymakers encouraged dollar bulls and pressured metal prices lower. Moving ahead to the North American session, the gold traders should continue to monitor the comments of FED policymakers George and Bullard.

Economic Outlook

On the data front, Germany released the latest Producer price index data on Monday. The data showed German PPI saw its biggest drop of 4.2% in October. the first month-on-month drop since May 2020 and the biggest monthly drop in PPI history.

Coronavirus update:

Worldwide, more than 638 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 98 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today the immediate support for the Euro stands near the level of 1.0240. On the flip side, the first resistance is at 1.0300 any break above this level will open at 1.0340/50 minimum.



The important levels to watch for today: Support- 1.0240 and 1.0200 Resistance- 1.0300 and 1.0340.

GOLD: Today as long as the metal trades above 1740 levels, the short-term uptrend will remain in place. On the upper side, the first resistance is located around 1758/60, a break above this level will confirm a possible move to 1770/72. On the downside, 1740 is the immediate support level, followed by 1732. Further selling pressure will intensify only if the metal break below 1730 levels.



The important levels to watch for today: Support- 1740 and 1735 Resistance- 1752 and 1758.

Quote of the day - “Your success in investing will depend in part on your character and guts and in part on your ability to realize, at the height of ebullience and the depth of despair alike, that this too, shall pass.” Jack Bogle.

Read more here - https://gulfbrokers.com/en/daily-market-report-578

 

[syamfx2020]

The volatility is expected to pick up later today. The key focus will turn to the minutes from the latest Federal Reserve meeting as the investors look for clues on future rate hikes by the central bank. During the last meeting, United States Federal Reserve officials delivered their fourth straight 75 basis-point interest rate increase. Meanwhile, the central bank suggested that it might soon shift to a more deliberate pace of rate increases.

On Tuesday, we received the latest comments from San Francisco Fed President Mary Daly and her Cleveland counterpart Loretta Mester, both of them signaling support for a smaller 50 bps hike in December.

EQUITIES

European shares traded flat on Wednesday Morning following the release of the latest PMI data while the UK shares extend the gains. On the other hand, Wall Street ended higher on Tuesday after several FED policymakers voiced support for a slower pace of interest rate hikes if warranted.

OIL

Crude oil futures hold gains on Wednesday supported by a weakening dollar and bullish data from the American Petroleum Institute showing a larger-than-expected draw in crude oil inventories. The API data showed that US crude inventories dropped by 4.2 million barrels last week, much higher than forecasts for a 2.2-million-barrel draw.

CURRENCIES

In the currency market, the EURUSD rebounded back to above 1.1330 on Wednesday as the US Dollar consolidated against its rivals after climbing to a weekly high early this week. However, the currency pair slightly reversed from the early gains despite the release of better-than-expected manufacturing PMI numbers.

GOLD

The safe-haven metal remains under pressure weighed down by the mixed comments from the FED policymakers dented the appeal of bullion. The key data for gold for today will once again be the FOMC as we get the latest minutes from their most recent meeting.

Economic Outlook

On the data front, the Reserve Bank of New Zealand (RBNZ) increased its official cash rate by 75 basis points (bp) to 4.25%. "The OCR needs to reach a higher level, and sooner than previously indicated, to ensure inflation returns to within its target range over the medium term," the RBNZ said.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 13.30

US – FOMC minutes: GMT – 19.00

Coronavirus update:

Worldwide, more than 638 million people have been confirmed infected and more than 6.6 million have died. The United States has confirmed over 98 million cases and has had more than 1.07 million deaths from COVID-19, the highest total in the world.

Technical Outlook and Review

EURUSD: For today the key resistance for the euro is located above 1.0350, a break above this level will confirm a possible move to 1.0370/90. On the downside, any meaningful pullback now seems to find some support near the 1.0300 and then 1.0270 zones.

The important levels to watch for today: Support- 1.0300 and 1.0270 Resistance- 1.0350 and 1.0390.

GOLD: For today, 1732 is the immediate support level, followed by 1728. If the metal breaks below 1728, the slump will quickly extend toward the 1720/18 zone. On the flip side, the first resistance is at 1750 any break above this level will open at 1758/60 minimum.



The important levels to watch for today: Support- 1732 and 1728 Resistance- 1750 and 1758.

Quote of the day - I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have - Paul Tudor Jones.

Read more here - https://gulfbrokers.com/en/daily-market-report-579

 

[syamfx2020]

Global stocks and commodities started the new on a bearish note due to rising COVID-19 cases and newly recorded deaths in China fuelled concerns over the global economic outlook. China, the world's second-largest economy reported another record high COVID-19 infections on Monday. China posted close to 40,000 coronavirus cases on Monday and for the 5th consecutive day, China reported close to 4,000 cases in the capital city of Beijing.

Moving ahead to the last week of this month investors remained cautious over China's COVID situation. This week, traders and investors should also pay attention that the November U.S. unemployment report is due Friday. The NFP expectations are for 200k jobs to have been added to the US economy in November.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Crowdstrike, Salesforce, Snowflake and Xpeng.

GOLD

The precious metal managed to regain early-week losses and closed above $1750 on Friday. Looking to the rising coronavirus cases, geopolitical tensions and rising global inflation could continue to keep precious metals volatile. For this week, the main drivers for the precious metal remain the movement of the US dollar, the US employment report and ongoing China’s Covid-19 outbreak.



This week, $1,745 is the immediate support level, followed by $1,730. If the metal breaks below the $1,730, the slump will quickly extend toward the $1,720/18 mark. On the upper side, gold is likely to find immediate resistance at $1,762, any break above the $1,762 level could lead the prices of the precious metal towards the next resistance levels of $1,772 and $1,780.

DOLLAR INDEX

The Greenback, in terms of the US Dollar Index (DXY), regained momentum on Monday morning as investors turn to its safe-haven appeal amid escalating fears about the latest spike in coronavirus cases and deaths in China. During the previous week, the dollar ended in negative territory driven by dovish FOMC meeting minutes. The latest minutes from the Federal Reserve's latest meeting suggested there will be a slower pace of interest rate hikes in the coming months. Moving ahead, the US dollar is likely to see high volatility this week as US GDP and NFP numbers will be posted.



On the weekly time frame, the DXY is currently supported at 105.60 and the resistance is around 106.50. If the greenback continues to fall this week, the key support level is 105.60 and 105.30/10. On the upper side, in case the metal manages to settle above 106.80, it will gain upside momentum and head towards the next resistance level at 107.30.

EURUSD

The currency pair rebounded and continued to shine last week supported by the weak dollar and better-than-expected German GDP data. The key data for Euro for this week will once again be the inflation data from Eurozone and Germany. However, the US dollar movement will continue to play a vital role in this currency pair's future direction.



This week, the first resistance is located above the monthly high‘s 1.0470, a break above this level will confirm a possible move to 1.0510/50. On the downside, the euro is supported at the 1.0310 level, any break below this level will open the doors to 1.0270/50.

DOW JONES

Major stock indices and Dow jones started the new week on a mixed due to by surging Covid cases in China and discussions around the price cap on Russian crude. During the previous week, Dow Jones and other US indices rose modestly as investors reacted to the latest minutes by the Federal Reserve. Investors will shift their attention this week, to coronavirus-related headlines and corporate earnings with some of the biggest U.S. companies reporting their earnings later in the week.



This week, If the bullish momentum continues then the next upside level is to watch 34,400 and 34,600. On the flip side, the first support for the Dow appears to be around 34,000, in the short-term any break below 34,000 is the next downside level to watch is 33,650/500.

Check out the detailed analysis with charts here- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-57