Brext-IN? Weekly markets overview

After the Brexit referendum, the markets are behaving in a really weird way.

  • Stocks are rising. Brext-IN?
  • Gold is touching new maximums. Are new QE coming?
  • Currencies are sleeping. Wait and see approach?

Let’s have a look at the charts.

STOCKS

Sp500

The weekly cycle is clearly pointing up: Speed is positive and prices are stable above the moving averages.
The only concern could be the cloud of static resistances between 2.105 and 2.120, but it’s a lonely signal with a low success rate.
(Learn how to identify the high-probability turning point, Click Here)

4jul SP500(Sp500 CFD – H1)

The closest support is 2.085 with the Simple Moving Average (SMA) 96 periods approaching the level.

Dax30

Bullish week for the Dax which, now, is stuck in the 9.730-9.760 area.
The weekly cycle is giving mixed signal with a speed below the zero and the price above the moving averages.

jul4 ger30(Ger30 CFD – H1)

2 strategies come, now, into play:

  • Trade the inversion of the cycle and BUY the breakout.
    Stop loss:
    9.655/9.590 – Take Profit: 10.100/10.300.
  • Suppose a resumption of the weekly bearish trend and open a SHORT position when the price will be below the averages again.
    Stop Loss: 9.800  – Take Profit: 9.155

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GOLD

Gold has the strongest bullish trend within the watch list, touching the 2 years high.

In the near future, there aren’t relevant resistances that could stop the run of the prices.

4Jul gold(Xau/Usd CFD – H1)

The next supports are in the area of 1.330 and 1.315.

CURRENCIES

Eur/Usd

The area between 1.11 and 1.1150 rejected the prices since the day after the referendum.

The weekly cycle is turning bullish but the confirmation of the movement will take place only after the breakout of this resistance zone.

EurUsd 4jul(Eur/Usd – H1)

The same operative strategy used with the Dax30.

Usd/Jpy

The void.

  • No clear direction.
  • No support and resistance.
  • No movements.

USDJPY H1 (07-04-2016 1915)

The best strategy for this kind of situation is to join the Bank Of Japan‘s mood and Wait and See.

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Market Movers

economic calendar(DailyFx – Economic calendar)

Friday could be the breakout day due to the NFP release.

Be ready!

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