Morning Insights 16th July

Simon Alagbe

Analyst


Instrument: GOLD

Intraday: Bearish

Technical Analysis

Preference: Sell position is envisaged if price trades below 1803.05 with take profit at key level 1800.50

Alternative scenario: Buy position is envisaged if price trades above 1808.05 with take profit at 1813.02

Fundamentals:

Core Retail Sales m/m (USD) 1pm

Retail Sales m/m (USD) 1pm

CommentGold is expected to trade bearish after news of more COVID vaccine tests has been giving positive results. They also dropped after Trump announced he was not following up on sanctions on Hong Kong, hence, tensions between the two nations have reduced. Gold is likewise envisaged to move back to the trend line it bounced off from in the later hours of Tuesday.



Instrument: GBPUSD

Intraday: Bearish

Technical Analysis

Preference: Sell position is envisaged if price trades below 1.25215 with take profit at key level 1.24638

Alternative scenario: Buy position is envisaged if price trades above 1.25716 with take profit at 1.26205

Fundamentals:

Main Refinancing Rate (EUR) 12:45pm

Monetary Policy Statement (EUR) 12:45pm

ECB Press Conference (EUR) 12:45pm

Core Retail Sales m/m (USD) 1:30pm

Retail Sales m/m (USD) 1:30pm

Comment: The dollar strengthened between yesterday and today after news of positive outcomes on the COVID 19 Vaccine testing, hence, GBPUSD dropped. Technically, it got rejected at resistance and it is envisaged to keep on dropping till it gets to the next support zone at 1.26205

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