Technical and fundamental analysis | Nasdaq Decline Mysteries, Gold and Dollar Expectations


Technical and fundamental analysis of Arab Forex:

The technical and fundamental analysis for this week is full of important economic news that will surely have a major impact on the prices of currencies, indices and metals, calling us to identify the days and news when strong economic data will be released.


However, it should be noted that the start of the week will be a very quiet start due to the lack of strong economic news as well as the presence of a bank holiday in UK banks.


As for the rest of the trading days, the important news starts on Tuesday, especially on the US Dollar, as one of the most important and important economic indicators is released, namely the Consumer Confidence Index, which gives us a strong measure of the extent of the US economy’s solidity and strength and their ability to overcome current inflationary concerns in world markets.


A higher value indicates higher consumer optimism. When consumers are optimistic, they tend to buy more goods and services, which boosts the economy. This metric comes from a monthly survey that asks respondents to rate the economy going forward.


Coming straight to Wednesday, the day of trading at the end of August, and as such, extreme caution must be exercised as two very important news items are announced: Canada’s Domestic Gross Domestic Product (GDP) gives us the total value of the economy’s goods and services. It is a broader measure of economic activity and a key indicator of economic health.


We close the week’s trading on Friday with a very important piece of news from the United States of America which is the private sector employment report which shows us except for the rate of change in the number of people employed in the agricultural sector over the past month.  This report ranks as one of the first Human Resources related reports released this month, leaving the market vulnerable to bigger surprises.


Technical Analysis and Key Trading Opportunities:

We note that the current week offers many ideal trades for many financial instruments such as gold, oil, bitcoin and other currency pairs and we will discuss these opportunities.


As for the equity indices, we note that the NASDAQ index offers strong sell opportunities which we expect to continue hitting 11711 in the coming period, but it must be noted that the target is a long-term target.




Gold Price Technical Analysis:

Gold prices are moving within the downwave we referred to in last week’s analysis video where we indicated that there is an excellent supply area between the 1804 and 1814 levels and indeed once prices hit these areas selling power dominated and started falling sharply, this decline extended to the 1747 level by the close of last week.


The confirmations of the pullback we were referring to was the break of the 1783 levels and consolidation below to allow the pullback to continue, which was accomplished exactly as we stated.


With prices reaching their final target, prices are now under heavy buying control due to the demand ranges between the 1728 and 1711 levels in addition to the increase in buying volume.


We anticipate the prices to rise to 1750 from the current levels and it is from these levels that you will monitor the upcoming price movements. Because it may complete the downward wave currently driving prices given the economic data that is heavily supportive of the dollar.


Technical analysis of oil prices:

Oil prices are influenced by OPEC’s statements about reducing production rates and thus lack of supply on world markets, which will push prices up in the coming period. Technically, we note that prices have already formed clear technical models, confirming the rising prices in the upcoming period and reaching $100 level in the upcoming period. This scenario is expected to occur in September.


Prices are now near a key demand level at 91.20 and 92.00 which represents a strong support level for prices which we expect to rise in the coming period to reach the mentioned target.


So that the coursesto reach the target, a break of 95.80 and stability above must occur with a daily trading candle for the required scenario to materialize.


Technical Analysis of NASDAQ Prices:

The Nasdaq Index fell sharply during Friday trading, crossing strong support levels between the 12727 and 12813 levels and we expect this level to become a strong supply area for prices to retest this level to fall over the long-term , and it is expected to continue its decline to the 11711 level in the coming period.


The NASDAQ index was impacted by the US dollar data released last Friday, leading to this sharp and sudden drop that is expected to continue if the negative data on the US economy continues.

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