In this article, we have covered the highlights of global market news about the S&P 500, Nasdaq 100, Dow Jones, AUD/USD, Gold Price and British pound.
S&P 500, Nasdaq 100, and Dow Jones Prediction for the Upcoming Week
The 200-day moving average and a trendline of the highs, which are nearly exactly in confluence, are targets for the S&P 500 as it surges upward. A less significant horizontal level from late April to early May, about the 4300 level, is close by.
The Nasdaq 100 is trading in open space as it has broken out above trend-line resistance. Keep a watch on how the market responds around 14055, which is where the 200-day moving average is located, should we approach it this week.
Regardless of the cause, a run-in with confluent resistance slightly over 4300 has a strong potential of causing volatility. It may also represent the climax of a bear market rebound amid a larger bear market. Watch for any indications of response off resistance over 4300 for the time being.
The 200-day moving average is barely out of reach for the Dow Jones. Similar to the S&P, it has a line of confluence, which contributes to the region around 33900’s status as a significant one. A change in momentum might open up the market’s short side.
The Australian Dollar’s Future Is Influenced by the US Dollar
The AUD/USD exchange rate increased over the last week as the US Dollar suffered from inflation numbers that were not as strong as expected. A three-week range’s topside has been breached.
With the noteworthy exception of gold, commodity prices increased as a result of the USD’s decline. The precious metal looked to be undermined by a rising US real yield.
The price of agricultural commodities increased more than that of industrial metals as a result of drought circumstances affecting pricing in North America and Europe. This might increase the effect of the Ukraine conflict on the world food supply.
There wasn’t much Australian data this week; instead, attention was focused on the inflation rates in China and the US.
Chinese CPI for the year as of the end of July came in at 2.7% as opposed to the projected 2.9% and 2.5%. Similar results were seen for PPI over the same period, printing at 4.2% as opposed to the expected 4.9% and 6.1%.
Price pressures may have decreased as a result of rolling Covid-19 lockdowns in major commercial areas and a troubled real estate market.
Gold Price Technical Prediction: Gold and Silver at Resistance, Time to Decide
Gold prices have increased by more than 7.5% from their annual lows, and XAU/USD is now trying to record its fourth straight weekly gain. We’re watching for a pivot in this area in the next few days for direction as the recovery from downtrend support is now challenging downtrend resistance. Similar to gold, silver is challenging a crucial resistance zone as the week’s first trading day approaches.
Gold’s recovery from downtrend support is now attempting to overcome downtrend resistance; it is seeking a response or upward price inflection in the next few days. If the price is truly going upward during this stretch, from a trading perspective, a breach or closure above the 52-week moving average is required to signal a more important bottom for gold is in place. Losses should be kept to a maximum of 1727.
British pound (GBP) Forecast: Double-digit inflation is possible in the UK
A weak British pound and a strong US dollar are conspiring to put Cable on the back foot as the week comes to a close. Cable is poised to breach again below 1.2100. The current upward trend from the low of 1.1740 on July 14 seems to have ended as the dollar strengthens ahead of the weekend. Earlier today, the most recent UK GDP statistics revealed that the country’s economy shrank in June every month while the initial estimate of Q2 GDP revealed a 0.1% decline. Although both numbers exceeded experts’ dismal predictions, the government and Bank of England will have taken notice of the UK economy’s decline.
Next week’s publication of the most recent data on employment, salaries, retail sales, and inflation makes it doubtful that the economic picture will improve. While the employment market is now strong, there is a potential that headline UK inflation may reach double digits the next week. The Bank of England has already issued a warning that this year’s inflation might reach 13% as the economy experiences a five-quarter slump. The UK is experiencing drought-inducing heatwaves, sky-high energy costs, and a political vacuum at No. 10, so any more bad economic news will enrage the already irate populace.
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