WHAT TO EXPECT IN THE MARKET THIS WEEK?
Stocks, Currencies and Commodities climbed on Monday morning after the US president Donald Trump signed Covid-19 relief bill into law. The bill includes $2.3 Million aid for the Coronavirus relief which is going to help millions of jobless people in the US, boosting the economy.
US markets futures are trading up by 0.75% followed by a higher opening of major Asian indices. Also, Electric car market Tesla will be added to the S&P 500. For the year 2020, Tesla has registered an impressive growth of almost 792% (YoY). Technically, the S&P 500 is trading at a lifetime high level of above 3700. The next important resistance is at 3800, above that it may attempt to cross the benchmark level of 4000; while on the downside, major support is at the 3500 level.
Major indexes like Dowjones have been trading in a narrow range of 1000 points for more than a month now. Due to year end closing and the Christmas holiday, the market may continue to trade in a narrow trading range for the rest of the week. If the market continues to climb, it may attempt to cross 31000 while any correction might lead close to 29000 level.
COMMODITIES AND CURRENCIES
The Yellow Metal continues to climb, it has already gained more than 24% YoY due to the global pandemic and an uncertain economic outlook. However, the Covid-19 bill relief law is going to help Gold close the year on a higher level than present. Technically, on a weekly chart, 1900 is still a major resistance for Gold. Any sustained move above 1900, it might attempt to touch 1980 and above 2000 level. While on the downside 1800 is acting as a strong support.
Silver, another industrial metal is showing more volatility. Improved economic sentiment due to the Covid vaccine is helping the metal cost to rise. $28 is the first major resistance for Silver, any move above $28 and it could attempt for the target of $30. While on the downside, $25 is the major support.
While on the Currencies counter, the US Dollar continues to remain under pressure. It is trading near to $90 level- any break below $90 might give further correction up to $88 while on the higher side. $92 is the first resistance.
EUR/USD is trading at $1.22 level. Weak Dollar is helping the pair for its highest yearly close. The next important resistance for the EUR is at $1.24, while on the downside $1.18 and $1.15 are the major support level.
Another major pair GBP/USD is focusing on Post-Brexit rebalancing. The EU and UK have already announced the Brexit deal on Christmas evening with the transition period thought to take over 5 years.
The overall outlook for the pair remains Bullish; once it crosses the $1.36 level, it might attempt for the next important level of $1.40. On the downside, $1.32 will continue to act as a major support.
The contents of this article do not constitute trading advice and should be treated as general information only.
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