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Gold Hits Key Resistance Level; Silver Stabilises at Fibonacci Support.

As gold challenges the $2,500 resistance following recent volatility, will it break through or face setbacks? Meanwhile, silver looks to stabilise at a critical Fibonacci level, can it reverse its downtrend and build momentum?

Read below what our desk thinks, and the important levels to watch this week.

This market brief is an overview of the week ahead and some of the events we see as being important to the markets.

Please be aware that our views may change throughout the course of the week, and we do not publish updates of such changes. For up-to-the-minute market analysis see our live trading room.

INDICES

AUSTRALASIA

ASX – 7970 (+119 or +1.52%)

The AU200 shows a strong upward trend this week, gaining 119 points with notable bullish momentum.

VOLATILITY ALERTS:

Tue 11:30 – AUD RBA Meeting Minutes

Thu 09:00 – AUD Judo Bank Services PMI (Aug)

Thu 09:00 – AUD Judo Bank Manufacturing PMI (Aug)

For a move to the upside, we must now see this market close above 7990. Should this occur, we will look for a move into 8010, and if the upside momentum is strong, we could see a move higher into 8030 and potentially 8070.

If we cannot close above 7950, we could see a move back to test 7930 before a pause to the downside. A break below this level may result in a sharp move lower into 7910, and any further breaks to the downside may see a bigger move into 7870.

EUROPE

DAX (30) – 18337 (+571 or +3.21%)

The DAX30 shows a strong bullish move, surging by 571 points this week, indicating solid upward momentum.

VOLATILITY ALERTS:

Tue 19:00 – EUR CPI (Jul)

Thu 17:15 – EUR HCOB Services PMI (Aug)

Thu 17:15 – EUR HCOB Manufacturing PMI (Aug)

For a move to the upside, we must now see this market close above 18383. Should this occur, we will look for a move into 18428, and if the upside momentum is strong, we could see a move higher into 18474 and potentially 18566.

If we cannot close above 18292, we could see a move back to test 18247 before a pause to the downside. A break below this level may result in a sharp move lower into 18201, and any further breaks to the downside may see a bigger move into 18110.

US

S&P 500 – 5565 (+217 or +4.06%)

The US500 shows a strong bullish trend, jumping 217 points this week, indicating robust upward momentum and optimism.

VOLATILITY ALERTS:

Thu 04:00 – USD FOMC Minutes

Thu 22:30 – USD Initial Jobless Claims (Aug/17)

Fri 00:00 – USD Existing Home Sales (Jul)

For a move to the upside, we must now see this market close above 5579. Should this occur, we will look for a move into 5593, and if the upside momentum is strong, we could see a move higher into 5607 and potentially 5634.

If we cannot close above 5551, we could see a move back to test 5537 before a pause to the downside. A break below this level may result in a sharp move lower into 5523, and any further breaks to the downside may see a bigger move into 5496.

FOREX

AUD/USD – 0.6672 (+105 or +1.6%)

The AUDUSD shows a moderate bullish trend, gaining 105 pips this week, signaling steady upward momentum.

VOLATILITY ALERTS:

Tue 11:30 – AUD RBA Meeting Minutes

Thu 09:00 – AUD Judo Bank Services PMI (Aug)

Thu 09:00 – AUD Judo Bank Manufacturing PMI (Aug)

Thu 04:00 – USD FOMC Minutes

Thu 22:30 – USD Initial Jobless Claims (Aug/17)

Fri 00:00 – USD Existing Home Sales (Jul)

For a move to the upside, we must now see this market close above 0.6689. Should this occur, we will look for a move into 0.6705, and if the upside momentum is strong, we could see a move higher into 0.6722 and potentially 0.6755.

If we cannot close above 0.6655, we could see a move back to test 0.6638 before a pause to the downside. A break below this level may result in a sharp move lower into 0.6622, and any further breaks to the downside may see a bigger move into 0.6589.

EUR/USD – 1.1024 (+111 or +1.02%)

The EUR/USD is showing a solid upward trend this week with a notable rise, indicating a strong bullish move.

VOLATILITY ALERTS:

Tue 19:00 – EUR CPI (Jul)

Thu 17:15 – EUR HCOB Services PMI (Aug)

Thu 17:15 – EUR HCOB Manufacturing PMI (Aug)

Thu 04:00 – USD FOMC Minutes

Thu 22:30 – USD Initial Jobless Claims (Aug/17)

Fri 00:00 – USD Existing Home Sales (Jul)

For a move to the upside, we must now see this market close above 1.1051. Should this occur, we will look for a move into 1.1076, and if the upside momentum is strong, we could see a move higher into 1.1102 and potentially 1.1149.

If we cannot close above 1.0997, we could see a move back to test 1.0972 before a pause to the downside. A break below this level may result in a sharp move lower into 1.0947, and any further breaks to the downside may see a bigger move into 1.0899.

GBP/USD – 1.2945 (+195 or +1.53%)

The GBP/USD is trending strongly upward, surging by 195 pips this week, indicating robust bullish momentum.

VOLATILITY ALERTS:

Thu 18:30 – GBP S&P Global Services PMI (Aug)

Thu 18:30 – GBP S&P Global Manufacturing PMI (Aug)

Thu 04:00 – USD FOMC Minutes

Thu 22:30 – USD Initial Jobless Claims (Aug/17)

Fri 00:00 – USD Existing Home Sales (Jul)

For a move to the upside, we must now see this market close above 1.2973. Should this occur, we will look for a move into 1.2997, and if the upside momentum is strong, we could see a move higher into 1.3021 and potentially 1.3069.

If we cannot close above 1.2919, we could see a move back to test 1.2895 before a pause to the downside. A break below this level may result in a sharp move lower into 1.2871, and any further breaks to the downside may see a bigger move into 1.2819.

USD/JPY – 147.92 (+94 or +0.64%)

The USD/JPY is on a strong bullish trend, rising 94 pips this week, showcasing significant upward momentum.

VOLATILITY ALERTS:

Wed 09:50 – JPY Balance of Trade (Jul)

Fri 09:30 – JPY Inflation Rate YoY (Jul)

Thu 04:00 – USD FOMC Minutes

Thu 22:30 – USD Initial Jobless Claims (Aug/17)

Fri 00:00 – USD Existing Home Sales (Jul)

For a move to the upside, we must now see this market close above 148.30. Should this occur, we will look for a move into 148.73, and if the upside momentum is strong, we could see a move higher into 149.16 and potentially 150.42.

If we cannot close above 147.54, we could see a move back to test 147.11 before a pause to the downside. A break below this level may result in a sharp move lower into 146.68, and any further breaks to the downside may see a bigger move into 145.42.

COMMODITIES

GOLD – 2506 (+78 or +3.21%)

Gold is soaring with a robust move up by 78 points this week, indicating strong bullish momentum.

For a move to the upside, we must now see this market close above 2513. Should this occur, we will look for a move into 2528, and if the upside momentum is strong, we could see a move higher into 2543 and potentially 2593.

If we cannot close above 2498, we could see a move back to test 2481 before a pause to the downside. A break below this level may result in a sharp move lower into 2466, and any further breaks to the downside may see a bigger move into 2451.

CRYPTOS

BITCOIN – 58380 (-357 or -0.61%)

Bitcoin is trending slightly lower this week, showing a modest bearish movement.

For a move to the upside, we must now see this market close above 58,596. Should this occur, we will look for a move into 59,129, and if the upside momentum is strong, we could see a move higher into 59,662 and potentially 60,072.

If we cannot close above 58,165, we could see a move back to test 57,632 before a pause to the downside. A break below this level may result in a sharp move lower into 57,099, and any further breaks to the downside may see a bigger move into 56,689.

DISCLAIMER

The views represented on this website do not contain (and should not be construed as containing) financial advice, recommendations, opinions in relation to acquiring, hold or disposing of a financial product of any kind, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Trade View accepts no responsibility for any use that may be made of these comments for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.