The Previous Week

US stocks showed mixed movements last week, with the S&P 500 and Dow Jones finishing the week just shy of all-time weekly closing highs

In the meantime, the US reported the highest number of COVID-19 cases in a single day and the number has been rising.

The Week Ahead

USD

According to seasonal cycles, the US dollar usually appreciates close to the US election. If the trend continues this year, we could see US dollars appreciating against other currencies in the coming weeks as we approach the November 3 US election. Currently the US index is at 93.00.

EUR

Private sector PMIs from France, Germany, and the Eurozone will be the key drivers on Friday.

If the new COVID-19 cases in France, Germany and other parts of the EU increase, it can have implications in the Euro.

US Indices

After last week’s individual town hall sessions, the final live televised debate will take place this coming Wednesday.

It will be a chance for Trump to narrow the gap ahead of the election scheduled on 3rd November.

Most FAANG (Facebook, Amazon, Apple, Netflix, Google) stocks’ Q3 results are going to be published in the coming week. This could bring huge volatility to indices.

GBP

COVID-19 cases are increasing in the UK and a new round of lock down measures have been announced. This could negatively impact the pound.

On Friday, Boris Johnson announced that it was time to prepare for a no-trade deal Brexit unless the EU changed its stance. This could also bring some negative sentiments to the pound.

Gold & Silver

If the above-mentioned prediction about the US dollar indeed happen, it would be no surprise if metals remained consolidated or slightly bearish in the short term.

Setups for This Week

GOLD

Primary View:

  1. Resistance is seen near 1912.
  2. Support is seen near 1876.
  3. The current price seems to be a good entry point for potential sellers.
  4. A pullback in entry also possible with a stoploss above 1912.
  5. The target could be 1876.

Alternative View:

  1. If the price moves above 1912, we may see further upside movement.

GBPUSD

Primary View:

  1. Resistance is seen near 1.30000.
  2. Immediate support is seen near 1.27600.
  3. Entry at current price or on pullback seems good for potential sellers.
  4. Stoploss has to be above 1.30000.
  5. The target could be 1.27600.

Alternative View:

  1. If the price moves above 1.30000, we may see further upside movement.

DOW JONES

Primary View

  1. Immediate resistance is seen near 28744.
  2. Immediate supports are near 28100 and 27629.
  3. Entry at current price or on pullback seems good for potential sellers.
  4. Stoploss has to be above 28744.
  5. The target is near 28100.

Alternative View:

  1. If the price moves above 28744, we may see further upside 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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