Last week, gold prices hit the peak of July 2016. In one of the previous reviews, we have already discussed reasons that caused that. Weakness of the American economy is an important lever that affects the value of gold, and at the moment we can see that the situation in the US is unenviable.
In addition, as we said before the uncertain situation with other assets positively affects gold, accordingly, with a high probability we can expect the continuation of the upward movement, despite the achievements of 1.5 year highs.
In the coming week we expect the release of data on US unemployment, and judging by the experts' forecasts, the data should be positive. A clearer picture of the upcoming one will be formed on Tuesday, during Trump's speech, but taking into account the eccentricity of this president, it can be assumed that this event will provide additional support to gold.
The beginning of the previous week was considered by many to be a continuation of the descending movement of the most popular crypto currency, but we can see that the rapid leaps observed in previous periods were not there.
Bitcoin spent the whole week trading in a rather narrow framework and on Friday we observed the formation of the so-called doji figure. This figure indicates the uncertainty of the market and is formed in the case when neither bulls, nor bears can take the upper hand in the market.
The main currency pair of the financial market continues to gain, and surprise market participants reaching new price highs. As already accepted in the market, any speech by the head of the ECB Draghi precedes a strong impulse. Waiting for new information about the QE program creates a certain excitement. Past performance of Mario Draghi wasn’t an exception.
After the breakdown of resistance of 1.23 we observed a strong growth to the level 1.25 with a strong glow of the market, the uptrend only strengthened. Proceeding from large volumes by the end of last week, many were fixed at 1.23250-1.23500 and today we expect correction to levels of 1.23-1.21 if they do not break through, then we expect the continuation of the up trend and a return to the level 1, 25 and even above to 1.27.
GBP / USD
Since January 11, we have seen pound’s confident growth, but the correction is still possible, so we expect the pullback to 1.40 level and possibly to 1.38, and if the volumes are large enough, the schedule can tickle the mark at 1.36.
In any case, at the moment we are waiting for the correction and see how the pound will go next, as soon as the pullback stops, we expect the continuation of the growth and the breaking to the levels at 1.43-1.45.
As part of the ascending channel, oil reached the level $65.50 twice, we have already observed the pullback from it.
Despite positive outlook, oil came to a fairly strong level, sellers are strong, buyers are waiting for the mark $65, to maintain the growing trend further.
Now, all attention is drawn to the OPEC’s decision by to increase production, and should also pay attention to US shale-miners, which recently are trying not to keep a large number of stocks, which gives additional hope to speculators on the rise in price of black gold.
The channel is fairly confident therefore we expect the price to go back to the above levels and the continuation of growth.