Weekly Market Report: July 7, 2022

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

Gold & Oil Plummet on Recession Fears

US Stock Market (Dow Jones)

Last: 31,173

Pivot: 30,790

Review:

US stocks were higher after the close on Wednesday, as gains in the Utilities,Technology and Healthcare sectors led shares higher. The Dow Jones Industrial Average added 0.23%, while the S&P 500 index added 0.36%, and the NASDAQ Composite index climbed 0.35% at the close on NYSE.

Technical comment:

The next resistances are at 31380 and then at 31750.

Preference scenario:

An opportunity to go long will present itself in case of a breakout above 30790, making 31380 the next immediate target with 31750 in extension.

Alternative scenario:

A breakout below 30790 would open the downside, with 30360 and 30070 as targets.

Resistance 31,380 31,750 32,050
Support 30,790 30,360 30,070
Gold & Oil Plummet on Recession Fears
USD/JPY

Last: 135.91

Pivot: 135.38

Review:

The yen gained a little support from some safety bids after Japanese households' inflation expectations strengthened in the three months to June, with the ratio of homes expecting price rises over the coming year hitting the highest level in 14 years.

Technical comment:

The RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50-period Moving Average (respectively at 135.58 and 135.52).

Preference scenario:

The upside prevails as long as 135.38 is support.

Alternative scenario:

A breakout below 135.38 will open the path to 134.75 and 134.38.

Resistance 136.71 137.08 137.46
Support 135.38 134.75 134.38
Gold & Oil Plummet on Recession Fears
Gold

Last: 1,741.36

Pivot: 1,738

Review:

Gold hits 10-month low from one-two punch of Fed/Dollar.

Technical comment:

The RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Gold stands below its 20 and 50-period Moving Average (respectively at 1748.50 and 1760.10).

Preference scenario:

A short-term rebound towards 1748.50 is likely.

Alternative scenario:

Should the price break out below 1738.00, expect 1734.00 and 1732.00.

Resistance 1,748.5 1,751 1,753
Support 1,738 1,734 1,732
Gold & Oil Plummet on Recession Fears
Oil

Last: 101.82

Pivot: 111.9

Review:

Crude tests $95 as recession fear, rocketing dollar shake root of oil rally.

Technical comment:

The RSI shows downside momentum.

Preference scenario:

Sellers may take advantage of the likely breakout below 111.90. In this case, the next targets to look out for will be at 91.60 and 87.00 in extension.

Alternative scenario:

If the price conquers the 111.90 level, look for further upside with 121.00 and 125.00 as targets.

Resistance 111.9 121 125
Support 91.6 87 81.8
Gold & Oil Plummet on Recession Fears
EUR/USD

Last: 1.0273

Pivot: 1.06

Review:

Euro falls as energy drives currency swings.

Technical comment:

The RSI is bearish and calls for further downside.

Preference scenario:

Traders might find a window of opportunity to go short should the price break out below 1.0600, making 1.0100 and 0.9950 the next targets to look out for.

Alternative scenario:

A breakout above 1.0600 will send the price higher, towards1.0800 and then 1.0960 as the immediate targets.

Resistance 1.06 1.08 1.096
Support 1.01 0.995 0.98
Gold & Oil Plummet on Recession Fears
GBP/USD

Last: 1.196

Pivot: 1.235

Review:

Sterling bounces weakly as Johnson's government staggers on.

Technical comment:

The RSI is bearish and calls for further downside.

Preference scenario:

Shorting Cable may prove profitable in case of a breakout below 1.2350. Should this happen, the next targets to watch would be at 1.1750 and 1.1430 in extension.

Alternative scenario:

A breakout above 1.2350 would open the upside, with 1.2670 and 1.2820 as targets.

Resistance 1.235 1.267 1.282
Support 1.175 1.143 1.1
Gold & Oil Plummet on Recession Fears

Customer Notice: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading or investment advice. 1Market provides Trading Central chart analysis to support clients in their trading decisions, which should be independently evaluated. The recipient acknowledges that he is solely responsible for his decisions. The analysis offered reflects the views of Trading Central and are subject to change at any time. Past performance of a financial asset is not a reliable indicator of its future performance. 1Market cannot be held liable for any information provided by Trading Central. 1Market makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of 1Market, a third party or otherwise.

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