The US stock market outperformed the rest of the world’s stock markets all put together, by a whopping 10 % in July 2021. The institutional investors seem to have pumped in money to the US stock market, following the footsteps of retail investors. This is evident from the strengthening of the US dollar, relative to other major currencies of the world. Moreover, the IMF has predicted that the US economy will outperform the economies of other developed as well as developing countries in the post COVID / recovery phase. The spread of the delta variant being as it’s not limited to the US alone, doesn’t pose a threat specific to the recovery of the US economy.

The abrupt restrictions on profit of Chinese companies imposed by the Chinese government has sent shockwaves through the stock market in China. This makes the US market a safe bet for investment, in comparison to China.

Week ahead:

USD

On Friday, the NFP decision will be released. The expected value is 900K. If the actual value is more than 900K, we expect the USD to appreciate.

AUD

On Tuesday, the interest rate decision will be released. The expected rate is 0.1 %. If the actual value is more than 0.1 %, we expect the AUD to appreciate.

GBP

On Thursday, the interest rate data will be released. The expected value is 0.1 %. If the actual value is more than 0.1 %, we expect the GBP to appreciate.

US indices

DOW – Price has touched the all-time high of 35090 and reversed. The price can fall to 34634 soon, if the current bearish momentum continues.

Gold & silver:

It is possible that the price of gold could touch 1825 and 1835 soon.

Setups for this week:

GBPJPY

Primary View:

1. The immediate resistances is near 153.478

2. The immediate supports are near 150.827 and 151.524

3. The current price seems good for potential sellers

4. Entry on pullback is also possible by keeping the stoploss above 153.478

5. Targets could be 150.827 and 151.524

Alternative View:

If the price moves above 153.478, we may see a further upside

XAUUSD

Primary View:

1. The immediate resistances are near 1835.98 and 1825.03

2. The immediate supports are near 1809.38 and 1791.53

3. The current price seems good for potential buyers  

4. Entry on pullback is also possible by keeping the stoploss below 1809.38

5. Targets could be 1835.98 and 1825.03

Alternative View:

If the price moves below 1809, we may see a further downside

CADJPY

Primary View:

1. The immediate resistances are near 88.614 and 89.188

2. The immediate support is near 86.996

3. The current price seems good for potential buyers

4. Entry on pullback is also possible by keeping the stoploss below 86.996

5. Targets could be 88.614 and 89.188

Alternative View:

If the price moves below 86.996, we may see further downside

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About Author

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

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