DAILY MARKET REVIEW — 21/11/2016

DAILY MARKET REVIEW — 21/11/2016

 

Political events will drive the financial markets today

 

Forex

EUR/USD

EURUSD

The pair continues its downtrend today. Germany’s PPI came out better than expected, which had an impact on the markets. But Eurozone’s trade balance provided some support for the EUR. However, Fed’s meeting minutes contributed to the pair’s subsequent fall. At the end of the day, Trump’s political intentions provided some support for the USD.

At the same time, the EUR is under pressure due to political events in Europe, such as the elections in France and the Italian referendum.

Resistance: 1.07072, 1.07852, 1.08632
Support: 1.05686, 1.05188, 1.04609

GBP/USD

GBPUSD

THE GBP fell against the USD last Friday. In addition, the pair declined before the US Federal Reserve meeting. At the moment, the probability of a rate hike is almost at 100%.

Today the economic calendar is empty, so the pair can only be influenced by technical factors.

Resistance: 1.23832, 1.24364, 1.24939
Support: 1.22801, 1.22063, 1.21419

 

Stock Market

Google (GOOG)

Google

The company announced its next smartphone Pixel this September. At the moment, official sales have started in the US and specialists have said that the new gadget is the best Android phone available now.

Resistance: 764.32, 769.51, 774.56
Support: 754.63, 750.28, 746.91

 

Commodities

GOLD

Gold

Gold fell by 0.5% last Friday and continued its two-week decline. This trend was caused by the positive US statistics and Fed representatives’ statements.

Recent statistics indicated that the U.S economy is strong and can sustain a Fed rate hike in December, which will surely cause a drop in gold’s price.

In the medium term, gold is likely to come under pressure due to the USD increasing.

Resistance: 1231.02, 1241.24, 1251.69
Support: 1205.48, 1199.02, 1188.94

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