Weekly Market Report: July 4, 2022

The knowledge you need to trade in the upcoming week. Keep up the pace with the market’s twists and turns!

US Equity Futures Trade Mixed; Gold Clings to $1800

US Stock Market (S&P 500)

Last: 3,823.41

Pivot: 3,945

Review:

US stock futures were trading lower during Sunday’s evening deals, following a negative finish for major benchmark averages in the previous week as market participants remain nervous on the prospects of an economic downturn, with US markets set to remain closed on Monday for Independece Day. Dow Jones Futures and S&P 500 Futures fell 0.2% apiece while Nasdaq 100 Futures eased 0.1%.

Technical comment:

The RSI is mixed to bearish.

Preference scenario:

A breakout below 3945.00 will promt some short-selling action, with targets at 3638.00 and 3540.00 in extension.

Alternative scenario:

A breakout above 3945.00 will open the upside, with 4015.00 and 4175.00 as targets.

Resistance 3,945 4,015 4,175
Support 3,638 3,540 3,425
US Equity Futures Trade Mixed; Gold Clings to $1800
USD/CAD

Last: 1.2876

Pivot: 1.292

Review:

USDCAD is facing severe resistance above 1.2880 amid a broader sell-off in the DXY. The USDCAD pair witnessed a minor reversal from around 1.2880 at the open today, however, the broad-based selling in the US dollar index (DXY) has brought offers in the asset.

Technical comment:

The RSI calls for a new downleg.

Preference scenario:

Sellers may feel encouraged to make a decisive move should the price break out below 1.2920, with targets at 1.2840 and 1.2820 in extension.

Alternative scenario:

In case of a breakout above 1.2920, the upleg forward will be open, with 1.2940 and 1.2960 as targets.

Resistance 1.292 1.294 1.296
Support 1.284 1.282 1.28
US Equity Futures Trade Mixed; Gold Clings to $1800
Gold

Last: 1,808.7

Pivot: 1,797

Review:

Gold justifies bearish moving average crossover to extend three-week downtrend. Gold Price (XAU/USD) prints mild losses while trying to defend the $1,800 during Monday’s Asian session, after declining for the last three weeks.

Technical comment:

The RSI advocates for further advance.

Preference scenario:

An opportunity to go long will present itself should the price rise above 1797.00, with targets at 1818.00 & 1825.00 in extension.

Alternative scenario:

Should the price dip below 1797.00, the further downside path will be open, with 1790.00 and 1783.00 as targets.

Resistance 1,818 1,825 1,833
Support 1,797 1,790 1,783
US Equity Futures Trade Mixed; Gold Clings to $1800
Oil

Last: 108.29

Pivot: 106.9

Review:

WTI struggles to extend the previous week’s recovery, grinds higher as of late. WTI crude oil prices fail to extend Friday’s run-up, taking rounds to $107.50 during Monday’s Asian session, as traders seek fresh directions amid multiple challenges for bulls.

Technical comment:

A support base at 106.90 has formed and has allowed for a temporary stabilisation.

Preference scenario:

Some buying action is to be expected if the price breaks out above 106.90, with targets at 109.35 and 110.40 in extension.

Alternative scenario:

A drop below 106.90 would open the downside, with 105.70 and 104.60 as targets.

Resistance 109.35 110.4 112
Support 106.9 105.7 104.6
US Equity Futures Trade Mixed; Gold Clings to $1800
EUR/USD

Last: 1.044

Pivot: 1.04

Review:

EURUSD pares recent losses around fortnight low, renews daily high. EURUSD picks up bids to refresh intraday high near 1.0435 during Monday’s initial Asian session, after falling back to the bear’s radar during the last week.

Technical comment:

The RSI is bullish and calls for further upside.

Preference scenario:

If the price manages to conquer the 1.0400 level and continue its upward climb, the upside will be open, with targets at 1.0470 and 1.0490 in extension.

Alternative scenario:

A breakout below 1.0400 will open the downside, with 1.0380 and 1.0365 as targets.

Resistance 1.047 1.049 1.051
Support 1.04 1.038 1.0365
US Equity Futures Trade Mixed; Gold Clings to $1800
GBP/USD

Last: 1.2108

Pivot: 1.206

Review:

GBPUSD Struggles to violate the critical hurdle of 1.2100. The GBPUSD pair is attempting to overstep the potential resistance of 1.2106 in order to turn the rebound into a bullish reversal.

Technical comment:

The RSI is poised for further advance.

Preference scenario:

Traders looking to go long, may find the opportunity to do so in case of a breakout above 1.2060, with targets at 1.2140 and 1.2170 in extension.

Alternative scenario:

A breakout below 1.2060 will further extend the downleg, with 1.2030 and 1.2000 as targets.

Resistance 1.214 1.217 1.22
Support 1.206 1.203 1.2
US Equity Futures Trade Mixed; Gold Clings to $1800

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