Last week gold and major Indices rallied together.

  • Stock markets rallied to all time high to the week
  • The DAX and Dow Jones hit new record highs
  • Gold extended its positive run, hitting a six-week high

The good news continues to flow on both the corporate and economic fronts, after a very good start reported by the banks over the past few days.

A six-week high for gold prices comes as treasury yields abate, or at least slow down for the time being. The past three weeks have seen the most sustained advance in gold this year, and while there is still a lot of ground to make up for, the overall outlook seems very promising for the metal.

Gold has broken the resistance at 1757 and moved up. As long as the 1757 level is respected, we expect the price to reach 1809 and 1847 in the near term

The Week Ahead

CAD

On Wednesday, the interest rate decision will be released. The data is expected to be at 0.25%. If the actual data is higher, we expect the CAD to appreciate.

EUR

On Thursday, the interest rate decision will be announced. The value is expected to be at 0%. If the actual value is higher, we expect the EUR to appreciate.

GBP

On Friday, the Purchasing Managers Index (PMI) data will be announced. The expected value is 56. If the actual value is higher, we expect the GBP to appreciate.

US Indices

The Dow Jones has reached an all-time high of 34249. Chances are that the price could move towards 35000 soon.

Gold & Silver

Gold has broken the resistance level of 1757 and moved up. As long as the 1757 level is respected, we expect the price to reach 1809 and 1847, in the near term.

Setups for this Week

EURGBP

Primary View:

  1. The immediate resistance is near 0.87190
  2. The immediate supports are seen near 0.86185 and 0.85685
  3. The current price seems good for potential sellers
  4. Entry on pullback is also possible by keeping the stoploss above 0.87190
  5. The targets could be 0.86185 and 0.85685

Alternative View:

  1. If the price moves above 0.87190, we may see further upside movement

CADCHF

Primary View:

  1. The immediate resistances are seen near 0.73924 and 0.74562
  2. The immediate support is seen near 0.73060
  3. The current price seems good for potential buyers
  4. Entry on pullback is also possible by keeping the stoploss below 0.73060
  5. The target could be 0.73924 and 0.74562

Alternative View:

  1. If the price moves below 0.73060, we may see further downside movement

GBPJPY

Primary View:

  1. The immediate resistances are seen near 151.283 and 152.328
  2. The immediate support is seen near 149.294
  3. The current price seems good for potential buyers
  4. Entry on pullback is also possible by keeping the stoploss below 149.294
  5. The targets are 151.283 and 152.328

Alternative View:

  1. If the price moves below 149.294, we may see further downside
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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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