Technical Tuesday

Gold analysis: After the big sell-off on Monday, I will try to examine what this means for gold in terms of direction in the near-term outlook, purely from a technical point of view.

As well as disappointment regarding China’s stimulus, we haven’t seen any major escalations in the Middle East conflict, while the US dollar and bond yields also remain well supported. On top of this, technical indications suggest gold prices remain significantly overbought. All this means the scope for a decent downward move is there, if the bears dare try to step in against what has been one of the strongest bullish trends in gold and ahead of US presidential election.

EURUSD Forecast: In addition to the strength of the dollar between haven factors and moderated expectations of monetary easing, dovish expectations surrounding the ECB’s upcoming monetary policy decision are putting additional pressures on the Euro.

GBPUSD Forecast: The GBPUSD is currently hovering below the key 1.3430 resistance level, with Fed Chair Powell's recent speech introducing a hawkish tone to the rate cut expectations, reinforcing the strength of the DXY and limiting further weakness.

GBPUSD Outlook: GBPUSD is trading on bullish grounds ahead of the monetary policy decisions and outlooks of the Fed and Bank of England.

There is the potential for gold to move sharply in response to this week’s CPI inflation data from the US should we see a sharp deviation from expectations. We maintain a bullish gold forecast ahead of the CPI release.

Later in the week, we will have the release of global PMIs, US GDP and the Fed’s favourite inflation measure – core PCE price index – all of which having the potential to impact the short-term gold forecast.

Despite a stronger retail sales print, the tide may have turned on the US dollar following last week's recent data releases and raised expectations over the Fed cutting rates in September. Therefore, my GBP/USD forecast remains bullish, and I reckon the $1.30 handle could be taken out soon.

Welcome to another edition of Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this week’s report, we will get technical on precious metals.

Welcome to another edition of Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this week’s report, we will analysis the EUR/USD, FTSE and Ether following recent bullish price action in all these markets.

FTSE 100 attempts to join global rally, boosted by China's efforts to shore up its economy. China FTSE A50 analysis shows Chinese stocks are responding positively to needs China has set a 5% GDP target, which will needs policy support ‘from all fronts’

Given that the odds of rate cuts have been trimmed by hotter inflation data last week, this is increasing the opportunity cost of holding gold over bonds. Therefore, the short-term gains could evaporate soon. Gold is more likely to hit new records closer to time of rate cuts, though.

In this shortened edition of Technical Tuesday, we will get technical on the EUR/USD analysis as the pair continues to show bearish price characteristics, while the Dollar Index is continuing to push higher following robust data and hawkish Fed signals.

Crude oil is already supported on raised geopolitical risks but now we also have improved demand outlook, after the IMF raised its global GDP forecasts thanks to a resilient US economy and fiscal support from China.

WTI hits $75.00 resistance again, as geopolitics support oil on dips. But crude oil faces some key risks, including weaker demand outlook and strengthening US dollar

S&P 500 outlook: Hawkish repricing of rate cuts could undermine overstretched equities. Fed Governor Chris Waller says 3 rate cuts appropriate (not 6 the markets are after) which is potentially bearish news. S&P 500 technical analysis suggests index is near extremely over stretched levels.

EUR/USD technical analysis: rates contained inside 1.09 support and 1.10 resistance, with euro hurt by German factory data, as investors eagerly await key US CPI data on Thursday.