› Market review, November 20 - November 24, 2017

Market review, November 20 - November 24, 2017

EUR / USD

Last week EUR / USD kept showing an obvious uptrend. All of the market’s attention was focused on Mario Draghi, the head of the ECB, and on the plans for the QE program.
As the head of the ECB noted, the European economy continues to use the way of distributing "cheap loans", thereby letting the market understand that the program of buying bonds will continue for an indefinite period.
The regulator made a promise that the record low interest rates will remain at the same level, even once the quantitative easing program is folded.
If you take into account the technical analysis, then last week the asset closed below the key level of 1.1800, and now we expect a downward trend towards strengthening the American.


Market review, November 20 - November 24, 2017


GBP / USD

The economy of Britain is going through period. Exit from the EU is a difficult political and economic step, and no one thought that it would be easy.
The Prime Minister of Britain, Theresa May, faces the first serious difficulties after losing seats in the parliament after an unsuccessful castling in the parliamentary elections.
Part of the new parliament threatens to announce a mistrust to the prime minister, which seriously impacts the reputation and authority of both Theresa May and the desire of market participants to invest in the uncertainty of the British parliament.
If we take the economy as a whole, the indicators and various statistical indices show a stable result, which indicates further stability and strength of the British pound.
After a long decline, we expect a correction in the direction of strengthening of the royal currency.


Market review, November 20 - November 24, 2017


Gold

As we can see, last week gold could not reach $1295 per troy ounce. And in general, the price moved in a rather narrow channel of $1270 - $1289.
But, nevertheless, the price rose insignificantly, especially on Friday - amid a mixed situation with the tax reform in the US and the emergence of new rumors about the impeachment of Donald Trump.
The next week will not be saturated with news, and this can attract investors to trade on gold. In addition, according to many analysts, the current price of gold is quite low and we should now expect a good growth. But still, for this to happen, the yellow metal will first have to gain a foothold above the level of $1288 and $1295. There is a high probability that the aforementioned negative factors will stimulate further growth of gold and help it to reach the levels that we mentioned in previous forecasts - $ 1313 and $ 1,331.
Therefore, we suggest examining the current situation in the market for finding entry points for trading on long positions.


Market review, November 20 - November 24, 2017


Bitcoin

On Friday, October 17, Bitcoin was trading near its historic highs of $ 8,000.
In addition to the record price, this mark is an important psychological level for market participants. At the moment, Bitcoin's market capitalization has surpassed $121 billion, which is more than the market capitalization of Tesla (52.52 B), BMW (58.4 B), Deutsche Bank (39.42 B) and many other world-famous companies.
This indicates both interest and trust of investors in this asset.
In addition, let's not forget that in Japan and Germany it's an official form of payment.
Moreover, for people of some countries, this is almost the only tool for withdrawing their money abroad, as the blockchain system is not controlled by the government.
A vivid example is Venezuela and Zimbabwe, where Bitcoin is used instead of currency.
Bitcoin is so unique in the world economy that it is quite difficult to predict its movement based on standard tools.
Apparently there will be a slight pullback, and it seems that there will be further growth with the nearest target around $9010.


Market review, November 20 - November 24, 2017


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