Gold Rate and GBP/USD Face Key Resistance Levels

Gold Rate and GBP/USD Face Key Resistance Levels

Stock markets returned to upbeat mode as the US legislators near closing a deal this week, while EUR/USD traders’ eyes will be focused on the Fed meeting updates.

A promising Invitation

Stock markets closed in the green on Tuesday on optimism over a possible approval of the long-waited stimulus package. The US house speaker Nancy Pelosi invited top republicans to meet on Tuesday to close a water-downed deal of $748 billion and pass it this week. On the other hand, the Republican Majority leader in the Senate Mitch McConnell said he would keep the senators in Washington until passing the deal.

McConnell congratulated for the first-time recognized Joe Biden as President-elect in a blow to President Trump’s desperate effort to flip the election’s results, providing more certainty to the market about the US political stability.

Stock Market

Change %

S&P 500

+1.0%

Dow Jones

+0.8%

NASDQ

+0.9%

Japan 225

+0.6%

DAX 30

+1.4%

FTSE 100

+0.3%

CAC 40

+0.6%

Table source: CAPEX WebTrader


EUR/USD and Main FX Markets

The EUR/USD traders monitor the FOMC meeting on Wednesday to find out whether the central bank will modify its monetary policy. The Fed may retain a dovish tone and emphasize the need for ongoing fiscal aid, and with near-zero interest rates and loose financial conditions, there is little more the central bank can do.

Technically, the Relative Strength Index (RSI) on the daily chart remained flat above 60 highlighting a stalled bullish momentum. The price develops a possible double top pattern and a break below the neckline at 1.2057 could send the price even lower towards 1.1940

Optimism for a trade deal on Brexit boosted the GBP/USD and led the pair towards the high end of the current trading zone 1.3185 – 1.3460 a daily close above that level may cause a rally towards the monthly resistance at 1.3710 (Feb 2018 low).

Gold and Oil

The oil price was boosted on Tuesday by the US fiscal deal optimism yet worries of a surprise rise in the US oil stockpiles slowed down the price rally on Wednesday. The price/RSI negative divergence on the Brent Crude signals a possible reversal of the current bullish momentum therefore, a close below the low end of the current trading zone $50.50 - $54.28 could send the price even lower towards the weekly support level at $46.51 (the August 2020 high).

The Gold price U-turned and rallied on Tuesday eyeing a test of the high end of the current trading zone $1,796 - $1,861. A close above that level could extend the rally towards the weekly resistance level at $1,921 (October 6 high).

Looking Ahead

On the economic calendar, markets expect the Eurozone composite PMI flash number of December at 10:00 AM (GMT), the UK composite flash number of December at 10:30 AM, the Canadian inflation numbers of November with the US retail sales of November at 2:30 PM, the US Manufacturing PMI flash numbers of December at 3:45 PM, the US Fed rate decision at 8:00 PM and the Fed president press conference at 8:30 PM.

Sources: Bloomberg, Reuters, CNN

Maklumat/penyelidikan ini disediakan oleh Mahmoud Alkudsi dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.