Market Brief

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Read below what our desk thinks, and the important levels to watch this week.

This market brief is an overview of the week ahead and some of the events we see as being important to the markets.
Please be aware that our views may change throughout the course of the week, and we do not publish updates of such changes.
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Trade View has entered the weekend Net Long.

AUSTRALASIA

ASX – 5882  ( + 2 or + 0.03% )

The ASX went sideways last week as it is now unsure where to go. As mentioned last week we still think the key levels are now 5790 on the downside and 6000 on the upside.

For the ASX to continue back higher we would like to see an early break and close past 5892 followed by a continuation of a long up bar reaching 5982, Once this is achieved we would like to see 5982 hold as a strong level of support before another break-through 6000 is made. Once this occurs we see the ASX reaching 6108 and possibly 6147.

If 6000 is it for the ASX then a continuation of the downside could be seen if 5892 becomes a solid level of resistance before a strong down bar breaks through 5842. Once this occurs then 5790 comes back into play and the only way we see this level broken is with strong momentum and a further long down bar. As mentioned previously “we still see 5790 playing an important role in the direction of this market” If the break does occur the next levels we will be watching are 5754, 5715 and if the move is strong then an extension towards 5636 is not out of the question.

EUROPE

DAX – 11869 ( + 6 or + 0.05% )

After an early start higher we saw another volatile week for the DAX with a 350 point day on Wednesday.  As the DAX has only closed 6 points higher for the week, our comments remain the same.

For the upside move to take full effect we will keep last weeks levels in tact with a slight amendment to the upside. We would like to see a strong up bar break past 11984 before reaching 12164 and finally 12460.

If the downside has started then the second leg down could start if we see a strong long downbar break past 11791 reaching 11621 again. If 11621 is broken with strong momentum the DAX could find itself near the area between 11292 – 57 very quickly. Remember the DAX moves quickly, DON’T BLINK.

US

S&P – 2047 (  – 13 or  – 0.63% )

The S&P started the week strongly and then we saw a 15 point move down in a matter of minutes out of normal trading hours without any real explanation. This was short lived as the move was quickly brought back up. But we decided to reduce exposure on the long side as no clarity was given. This was then backed up by the sharp move down on Friday. Is something going on??

A line from the movie Margin Call “There are three ways to make a living in this business: be first, be smarter, or cheat.” It looks like someone is trying to be FIRST??

For the S&P to continue higher we would like to see 2050 broken early and then hold as a strong level of support before continuing back above 2076 with a long up bar. Once this occurs 2085 and possible 2101 could be seen. If the upward momentum is strong then 2112 will come into play once more.

For the down move to continue then 2050 needs to become a solid level of resistance before 2033 is seen, this may however provide some temporary support but if the momentum is strong then we could see 2024 reached. If we are in a corrective mode then look out for 2010.

FOREX

AUD.USD – 7628  ( – 119 or – 1.54% )

Another down week for the ASX as there are rumours of further rate cuts by the RBA. It is still sitting between 2 of our keys levels therefore our comments remain the same.

For the up move to restart we would like to see a strong up bar break and close past 7718. This would then need to become a strong level of support before a strong push to reach 7927. The only way we see 8088 is by a strong short squeeze.

For the downside move to continue we would like to see a strong down bar break past 7494. Once this occurs we could see 7407 and if the momentum is strong then 7263 could be seen.

EUR.USD – 10965 ( + 76 or + 0.70% )

I know we sound like a broken record by when we see the EUR attempting to break through 110 and then back down what else is there to say.

Our comments from last week – “If the FED’s tone re raising rates changes then we could see a massive short squeeze as everywhere we turn, we hear traders being short the EUR.”

And there it is, as mentioned last week and a few weeks ago we saw the “short squeeze” with the EUR reaching 110.

For the EUR to continue higher we would like to see another attempt at breaking 11038. Dare I say if the upward momentum is strong we could see the EURO extend towards 113150 or even 11396?

For the downleg to continue its long term move we would like to see an early break back down past 10899 followed by a strong break past 10780 reaching 10590. If the momentum is strong we could see 10452 tested. Further downside levels we will be watching are 10283, 10206, 10121, 10044.

GBP.USD – 14909 ( + 44 or + 0.30% )

De-ja Vue

“Up and Down like a pinball machine the GBP bounces between two of our levels 14950 on the upside and 14832 on the downside. Are we starting to see Volatility back in the FX markets? We say Be Prepared!”

For the GBP to restart its move higher we would to see 14950 broken early in the week followed by another aggressive push reaching 15140 again continuing towards 15209.

For the down move to restart then we would like to see another solid long down bar past 14832 before reaching 14563.

USD.JPY – 11892 ( – 20 or – 0.17% )

Volatility here we come. After a strong early start the USD gave away all the gains through the week. “Until the FED firms up its Interest rate rise this pair might be heading down in the near future.”

For the USD to continue its long term rally we would like to see a strong long up bar break through 11931 early in the week followed by a continuous break past the area between 11991 – 12017 before a new attempt at breaking our key FICM level of 12064 is made. If the break is strong and has momentum then we could see 12184 and possibly 12275.

If the USDJPY restarts back lower then we would like to see strong early break and close past our key FICM level of 11867 before further downside breaks are made. If this is done with strong downward momentum then we will discuss it in our LIVE CHAT ROOM.

COMMODITIES

GOLD – 1198 ( + 16 or + 1.35% )

In the previous weeks brief we said “One note of caution, if the rate rise does not occur and the wording by the FED changes, be ready for a sharp reversal in many instruments, GOLD will be one of them.”

For the upward move to continue we would like to see another strong up bar break past 1208 before pushing through 1216 and 1226. Once this occurs then we could see 1241 and a possible extension reaching 1252 which would complete the range set back in Oct 2013.

For the down move GOLD will need to break an important level between 1178 – 80. If this occurs with a long down bar then it could continue down towards 1167 and settling near 1149 again.

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The views represented on this website do not contain (and should not be construed as containing) financial advice, recommendations, opinions in relation to acquiring, holding or disposing of a financial product of any kind, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Trade View Investments accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

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Commentary from our trading desk – written by our Head of Trading.

DISCLAIMER

The views represented on this website do not contain (and should not be construed as containing) financial advice, recommendations, opinions in relation to acquiring, holding or disposing of a financial product of any kind, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Trade View Investments accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

TRADE VIEW MAY CHANGE THE VIEW PRESENTED AT ANY TIME AND WILL NOT PUBLISH ANY UPDATE TO THAT EFFECT.

This communication must not be reproduced or further distributed.