1. Forex Market Insight
The euro rose by 0.09% against the dollar at 1.1756, having fallen by 0.2% to 1.1727 during the session.
Before the Federal Reserve meeting at Jackson Hole, the flow of money lacked strong directionality. The euro climbed briefly after the news came out that the German Social Democratic (SDP) overtake the conservative coalition in the polls.
(EUR/USD 1-hour chart)
Today, the euro continues to warrant attention at the 1.1705 to 1.1773 range. If the euro breaks above 1.1773, it will open up further upside potential. At that time, focus on the suppression of 1.1795. On the lower end, focus on the support of 1.1705. As long as it does not fall below 1.1705, it will remain bullish. It would be ideal if the strength of the euro drops below 1.1705 as it will open up further downside potential. At that time, pay attention to the support of 1.1663.
GBP Intraday Trend Analysis
The British pound appeared weak and fluctuated sideways.
The market’s attention is focused on Friday’s Federal Reserve meeting at Jackson Hole. At that time, Fed Chairman Powell will likely hint a timeframe for tapering the monetary stimulus program. The market is anticipating for Powell’s speech on this issue before a new round of massive risk buying and dollar selling begins.
(GBP/USD 1-hour chart)
The British pound fluctuated at a high-level yesterday. Today, the pound is mainly focused on the 1.3669-line of support. If the pound sits above the 1.3669-line, it means that buying is more active. The top mainly focuses on the suppression of the 1.3777-line. If the pound’s strength falls below 1.3669, it will open a greater downside potential. At that time, pay attention to 1.3566-line for support.
2. Precious Metals Market Insight
The high level of uncertainty in the global economy due to the Covid-19 pandemic has driven the market’s demand for gold.
Looking ahead to the gold price trend in the second half of the year, the main factors affecting the gold price must be considered. These include the Fed’s loose monetary policy, the trend of the U.S. dollar, the threat of inflation, the aftermath of the Covid-19 pandemic and the degree of economic recovery.
Once the Fed decides to withdraw from the loose monetary policy, it will be unfavorable for the gold price. However, before the complete withdrawal of the loose monetary policy, the Fed may maintain low interest rates until 2022, which may support gold prices to a certain extent.
(Gold 1-hour chart)
Yesterday, the price of gold broke through and rose to the first target level of 1808. The gold was under pressure on the short side, leading it to retest at the key position of 1795. Today, on the top, continue to pay attention to the suppression of the three positions of 1808, 1819 and 1831. On the bottom, focus on the support of 1790. The only possibility of having a greater downside potential, is when the gold price breaks below the 1790 line.
3. Commodities Market Insight
WTI Crude Oil
Crude oil rose for a second day, with U.S. oil futures rising by approximately 3% on Tuesday, 24th August 2021, extending Monday’s gains. Oil prices are expected to test at $70 soon, which is the highest level hit earlier this month.
Major Asian consumer countries have quickly zeroed out their local cases of the Delta variant, and passenger traffic is showing signs of recovery, although the strain continues to affect other regions. In addition, vaccination rates are likely to rise following the FDA approval of Pfizer’s Covid-19 vaccine, favoring the recovery.
(Crude oil 1-hour chart)
Yesterday, oil prices continued to rise, hitting the target level of 67.50. It met resistance after the rise and fell back. Today, we pay attention to the 67.50-line. If the oil price rises above the 67.50-line again, it will open up further upside potential. At that time, we will pay attention to the suppression of the 68.57 and 69.75 positions. If the oil price runs below 67.50, pay attention to the support at 66.35 and 65.16 in turn.
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