Monday’s markets are steady. Investors are so encouraged by the economic recovery in Europe and China that even news of new coronovirus outbreaks were completely ignored.
As expected, due to good statistics, stock markets are actively gaining momentum. Donald Trump said he is ready to further support his country’s economy with additional financial incentives.
In the nearest future optimistic investors will try to launch a new rally in the markets. Almost everything is ready for it, both in fundamental and technical format. But it’s hard to say how strong it will be.
The S&P500 index adds more than 1.3% and tries to take the level of 3180, the DAX index at the close of trades rose perfectly by more than 1.6%, at 12733.
On Monday, the pair EUR/USD showed excellent dynamics and reached the level of 1.1345, which is the maximum value since June 24.
The main driver is the weakening of the US dollar, as well as active growth in the Chinese stock markets. The world economy is recovering at a good pace, which is not a good sign for the dollar.
It is likely that the bulls will try to consolidate above 1.1300 from now on, in order to continue the way to the next resistance at 1.1325. And even higher, we are waiting for the maximum of June 23rd at 1.1349 and the maximum of June 16th at 1.1350, while at the very top we are waiting for the psychological level of 1.14.
On Monday, the bulls in gold are excited to win. After falling to $1770 an ounce in the morning, the price turned around and took a strong resistance of $1780.
A break-down of $1780 will increase bullish sentiment and open the way to $1800. Taking into account the weakness of the US dollar, this movement might happen in the near future.
What’s waiting for us today?
06.30 Decision on interest rate of Reserve Bank of Australia
08.00 Volume of industrial production in Germany for May
16.00 Number of job offers in the US in May
16.00 Canadian Business Activity Index for June
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