Business

Spot Gold (XAU / USD), ECB & S & P 500 Index (SPX) – Notable FinTwit Trends

FINTWIT analysis

  • gold Fight basically and technically.
  • from now on ECB interest rates Next week’s decision.
  • SPX set a new record high.

Imminent Gold Breakout

Gold price Steadily increasing as a tug of war during the rise Global inflation Treasury yields continue to rise.Bullions are often seen as a hedge against rising inflation, but the rate of price increase is Cryptocurrency It has reached the highest level ever. It seems that market participants are exchanging gold for the crypto market as an alternative inflation hedge.

Focusing on gold for now, inflationary pressures may be above rising national treasury yields. The fear of COVID-19 has calmed down a little compared to the previous month, Safe shelter Appeal yellow metal.

Spot gold Daily chart

Created chart Warren Benketus, IG

Gold is compliant Symmetric triangle The formation (black) currently being tested with triangular resistors. If today’s daily candles exceed the resistance of the triangle, the card can have an upside-down breakout. That said, many analysts advise daily to check for a second candle that exceeds resistance before considering a long entry.

Major resistance levels:

Main support levels:

  • 1763.30
  • Triangle trendline support (black)

ECB remains regulatory as Hawkish pressure rises

NS European Central Bank (ECB) As confirmed by the Reuters poll in the figure below, we will announce interest rate decisions next week (see calendar below).

ECB Economic Calendar

sauce: DailyFX Economic Calendar

ECB now Dove As inflationary pressures increase, approaches can be threatened, but these days have been exacerbated by rising energy prices in Europe. This has already been clear for weeks, but the impact of the second round may still be announced in future data. ECB officials are currently split by strong headwinds facing the current policy outlook, which could lead to revisions to future rate hikes.This may have a bullish undertone EUR After a miserable year against U.S. dollar..

Reuters ECB rate voting

Source: Refinitiv

EUR / USD Daily chart

EUR / USD daily chart

Created chart Warren Benketus, IG

every day EUR / USD The chart above shows recent depreciation EUR Against the greenback.later Rectangular breakout (Blue), Euro found support at 1.1524 Recovers quickly towards 23.6% Fibonacci levels 1.1680.. A confirmation candle that closes beyond this Fibonacci resistance level, 1.1800.. Similarly, below 1.1602, it could fall further. 1.1524..

NS Relative strength index (RSI) At this point, we do not support a particular direction. It may be slightly up, but nothing is convincing. The potential key level breaks mentioned above are shown in the RSI, further demonstrating short-term momentum.

Major resistance levels:

  • 1.1900
  • 1.1800
  • 1.1680 – 23.6% Fibonacci

Main support levels:

EARNINGS SEASON BOLSTERS S & P 500 INDEX

U.S. stocks fend off previous concerns about inflation and supply chain stagnation after several major stocks surplus Revenue Estimate. Many companies have reported that they have succeeded in passing on additional costs to end consumers, boosting revenue. Today’s high consumer demand allows for the prosperity of this relationship, but sustained levels of inflationary pressure and reduced central bank support can have long-term adverse effects. SPX index And its components.

Yields on 10-year US Treasuries continue to rise, which traditionally does not support tech stocks. When earnings are consumed by the market (taking into account higher yields), higher yields adversely affect their valuation, which is a significant drop in tech stock prices.

Boost you Stock market knowledge in our article About the types of stocks available, the impact of stocks on the economy, and the start of stock trading.

SPX Daily Chart

SPX daily chart

Created chart Warren Benketus, IG

of Last week’s Fintwit articleEscaped from approaching EMA A bullish crossover (blue) that unfolded as expected. The index is currently trading above the long-term trendline support (black). I think there will be a further upside (albeit minimal), followed by a post-earning downside correction season that should overlap with the Fed’s gradual decline in assets.

Major resistance levels:

Main support levels:

— Written by Warren Venketas for DailyFX.com

Contact Warren on Twitter to follow us. @WVenketas



Spot Gold (XAU / USD), ECB & S & P 500 Index (SPX) – Notable FinTwit Trends

Source link Spot Gold (XAU / USD), ECB & S & P 500 Index (SPX) – Notable FinTwit Trends

Related Articles

Back to top button