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Please be aware that our views may change throughout the course of the week, and we do not publish updates of such changes.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 – 7916 (+192 or +2.49%)
AU200 surged to 7916 from 7724 last week, indicating a strong bullish trend with a significant upward movement.
VOLATILITY ALERTS:
Tue 09:00 – AUD Bank Manufacturing PMI
Tue 11:30 – AUD RBA Meeting Minutes
For a move to the upside, we must now see this market close above 8107. Should this occur, we will look for a move into 8326, and if the upside momentum is strong, we could see a move higher into 8546 and potentially 9069.
If we cannot close above 7730, we could see a move back to test 7552 before a pause to the downside. A break below this level may result in a sharp move lower into 7374, and any further breaks to the downside may see a bigger move into 6919.
EUROPE
DAX (30) – 18561 (+728 or +4.08%)
DAX surged from 17833 to 18561 this week, indicating a strong bullish trend with a significant upward movement.
VOLATILITY ALERTS:
Tue 19:00 – EUR Manufacturing PMI
Wed 20:00 – EUR Unemployment Rate
Wed 20:00 – EUR CPI
Wed 20:00 – EUR Inflation Rate
Fri 20:00 – EUR Retail Sales
For a move to the upside, we must now see this market close above 19002. Should this occur, we will look for a move into 19584, and if the upside momentum is strong, we could see a move higher into 20165 and potentially 23206.
If we cannot close above 18611, we could see a move back to test 18029 before a pause to the downside. A break below this level may result in a sharp move lower into 17448, and any further breaks to the downside may see a bigger move into 16209.
US
S&P 500 – 5242 (+106 or +2.06%)
US500 surged from 5136 to 5242 this week, indicating a robust bullish trend with a significant upward movement.
VOLATILITY ALERTS:
Tue 01:00 – USD Manufacturing PMI
Thur 03:00 – USD FED Powell Speech
Thur 23:30 – USD Jobless Claim
For a move to the upside, we must now see this market close above 5355. Should this occur, we will look for a move into 5469, and if the upside momentum is strong, we could see a move higher into 5583 and potentially 5828.
If we cannot close above 5128, we could see a move back to test 5014 before a pause to the downside. A break below this level may result in a sharp move lower into 4899, and any further breaks to the downside may see a bigger move into 4639.
FOREX
AUD/USD – 0.6490 (-121 or -1.83%)
AUDUSD dropped from 0.6611 to 0.6490 this week, indicating a considerable bearish trend with a notable downward movement.
VOLATILITY ALERTS:
Tue 09:00 – AUD Bank Manufacturing PMI
Tue 11:30 – AUD RBA Meeting Minutes
Tue 01:00 – USD Manufacturing PMI
Thur 03:00 – USD FED Powell Speech
Thur 23:30 – USD Jobless Claim
For a move to the upside, we must now see this market close above 0.6507. Should this occur, we will look for a move into 0.6529, and if the upside momentum is strong, we could see a move higher into 0.6552 and potentially 0.6612.
If we cannot close above 0.6474, we could see a move back to test 0.6442 before a pause to the downside. A break below this level may result in a sharp move lower into 0.6408, and any further breaks to the downside may see a bigger move into 0.6353.
EUR/USD – 1.0741 (-188 or -1.72%)
EURUSD declined from 1.0929 to 1.0741 this week, indicating a significant bearish trend with a notable downward movement.
VOLATILITY ALERTS:
Tue 19:00 – EUR Manufacturing PMI
Wed 20:00 – EUR Unemployment Rate
Wed 20:00 – EUR CPI
Wed 20:00 – EUR Inflation Rate
Fri 20:00 – EUR Retail Sales
Tue 01:00 – USD Manufacturing PMI
Thur 03:00 – USD FED Powell Speech
Thur 23:30 – USD Jobless Claim
For a move to the upside, we must now see this market close above 1.0767. Should this occur, we will look for a move into 1.0794, and if the upside momentum is strong, we could see a move higher into 1.0821 and potentially 1.0870.
If we cannot close above 1.0714, we could see a move back to test 1.0687 before a pause to the downside. A break below this level may result in a sharp move lower into 1.0659, and any further breaks to the downside may see a bigger move into 1.0620.
GBP/USD – 1.2548 (-268 or -2.09%)
GBPUSD plummeted from 1.2816 to 1.2548 this week, indicating a substantial bearish trend with a significant downward movement.
VOLATILITY ALERTS:
Tue 01:00 – USD Manufacturing PMI
Thur 03:00 – USD FED Powell Speech
Thur 23:30 – USD Jobless Claim
For a move to the upside, we must now see this market close above 1.2578. Should this occur, we will look for a move into 1.2624, and if the upside momentum is strong, we could see a move higher into 1.2671 and potentially 1.2773.
If we cannot close above 1.2522, we could see a move back to test 1.2480 before a pause to the downside. A break below this level may result in a sharp move lower into 1.2443, and any further breaks to the downside may see a bigger move into 1.2372.
USD/JPY – 151.61 (+486 or +3.31%)
USDJPY surged from 146.75 to 151.61 this week, indicating a robust bullish trend with a substantial upward movement.
VOLATILITY ALERTS:
Tue 01:00 – USD Manufacturing PMI
Thur 03:00 – USD FED Powell Speech
Thur 23:30 – USD Jobless Claim
For a move to the upside, we must now see this market close above 155.97. Should this occur, we will look for a move into 158.78, and if the upside momentum is strong, we could see a move higher into 161.59 and potentially 167.03.
If we cannot close above 147.15, we could see a move back to test 144.34 before a pause to the downside. A break below this level may result in a sharp move lower into 141.53, and any further breaks to the downside may see a bigger move into 136.09.
COMMODITIES
GOLD – 2253 (+71 or +3.25%)
GOLD surged from 2182 to 2253 this week, indicating a robust bullish trend with a significant upward movement.
For a move to the upside, we must now see this market close above 2308. Should this occur, we will look for a move into 2363, and if the upside momentum is strong, we could see a move higher into 2418 and potentially 2560.
If we cannot close above 2200, we could see a move back to test 2145 before a pause to the downside. A break below this level may result in a sharp move lower into 2089, and any further breaks to the downside may see a bigger move into 1938.
CRYPTOS
BITCOIN – 69705 (-2450 or -3.4%)
Bitcoin dipped from 72155 to 69705 this week, indicating a notable bearish trend with a significant downward movement.
For a move to the upside, we must now see this market close above 71342. Should this occur, we will look for a move into 72639, and if the upside momentum is strong, we could see a move higher into 73936 and potentially 86812.
If we cannot close above 68068, we could see a move back to test 66771 before a pause to the downside. A break below this level may result in a sharp move lower into 65474, and any further breaks to the downside may see a bigger move into 62018.
