Reuters reported that US President Joe Biden scored his first legislative win as the House of Representatives passed his 1.9 trillion USD coronavirus relief package early Saturday. The American Rescue Plan will pay for vaccines and medical supplies and send a new round of emergency financial aid to households, small businesses and state and local governments.

Warren Buffett’s Berkshire bought back its own stock worth 24.7 Billion USD. The company didn’t find any outside investing opportunities and thereby invested in its own company. That action increased Buffet’s ownership in all of Berkshire’s businesses by 5.2%.

The Week Ahead:

USD

On Friday, the Non-farm payroll (NFP) data will be released. The expected data is 148K. If the actual data is more than 148K, we expect the USD to appreciate.

EUR

On Tuesday, the Consumer Price Index (CPI) will be announced. The expected value is 1.1% and if the actual value is higher, we expect the EUR to appreciate.

AUD

On Tuesday morning the Reserve Bank of Australia (RBA) interest rate decision will be announced. The current interest rate is at 0.1% and surprises are not expected.

DOW JONES

The Dow Jones moved up by around 700 points earlier in the week then reversed. The price closed below the low of the previous week. If the price cannot hold the current 30950 level, chances are high that the Dow Jones could drop further till 29800.

GOLD & SILVER

Gold dropped by around 100 USD last week due to the sudden surge in the US dollar. We are more dovish on next week’s prices. If the price can’t hold the current 1734 level, chances are that the price could drop to1715 and 1687.

Setups for this Week:

EURUSD

Primary View:

  1. The immediate resistance is seen near 1.21812
  2. The immediate support is seen near 1.20297 and 1.19910
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 1.21900
  5. The targets could be 1.20297 and 1.19910

Alternative View:

  1. If the price moves above 1.21850, we may see further upside movement

EURGBP

Primary View:

  1. The immediate resistance is seen near 0.86858
  2. The immediate supports are 0.86175 and 0.85418
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 0.86858
  5. The targets could be 0.86175 and 0.85418

Alternative View:

  1. If the price moves above 0.86858, we may see further upside movement

USDCAD

Primary View:

  1. The immediate resistances are seen near 1.28151 and 1.29555
  2. The immediate support is at 1.25885
  3. The current price seems good for potential buyers
  4. Entry on pullback is also possible by keeping the stoploss below 1.25885
  5. The targets could be 1.28151 and 1.29555

Alternative View:

If the price moves below 1.25885, we may see further downside movement

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About Author

Mithun Girishan

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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