The first trading week in the last month of this year starts with quiet of important data to generate some crucial decision by Fed, which may change the trend in equities US dollar and the Yellow metal. On Monday Fed Chairman Ben Bernanke speaks. Traders are watching very closely the footsteps of the Fed. This week US labour market will be crucial for markets.
The upcoming Fed meeting December 17th and 18th will decide the fate of Gold by this week’s nonfarm payrolls. If the economic data looks healthy in the eyes of Fed, they force to scale back its monthly bond buying program which may boost the US dollar.
The US economy is recovering in a slow motion. For the month of November the market expects 185 thousand nonfarm jobs in US due out on December 6th. On the other hand, December 13th is the deadline for an agreement for the budget.
INDU-Dow rally all the way to 16100 from 2009 low’s. Now Dow is running in an overbought territory indicating sell-off from higher levels. Equities boosted by Fed’s program.
RESISTANCE- 16200 ABOVE THAT 16700 (HIGHER END OF THE CHANNEL)
SUPPORT- 15960 BELOW THAT 15800. CLOSE BELOW 15800 BEARS HOLD THE DOW.
ALERT- EXPECT A BIGGER FALL at 16200-16700 LEVELS
GOLD-Gold came down to near $1180 level which is any uneconomical level for many mines to operate profitably. If gold comes below $1200, we can see a production cut by mining companies aimed at re-balancing the market.
The world’s largest consumer of the yellow metal, India is suffering from limited supplies to meet the peak wedding season demand. Demand has picked up a little bit, supplies are tight. To ease its trade deficit, India has made it more expensive to bring in gold, the biggest non-essential import item, by setting the import duty at record high 10%.
In Asia’s trading session Gold is trading at 1248.
We could expect in the near term that gold would form a bottom and starts its rally.
CRUDE– US light sweet crude was trading at 93.2 made low at 92.64 in Asia’s trading session. As long as it holds 91.5, it can see some pull back up to 93 95/96. If it closes below 91.5, the next target will be around 85 80 77. We expect the fair value of crude at 80$. Oil turns bullish only above $105.
Go short on every rise for the target 85 80.
USDX– 80.5 is strong support. We expect an upwards move towards 81.5 83 85. Close above 85 produces a fresh rally towards 90 +
The material has been provided by InstaForex Company – www.instaforex.com
The first trading week in the last month of this year starts with quiet of important data to generate some crucial decision by Fed, which may change the trend in equities US dollar and the Yellow metal. On Monday Fed Chairman Ben Bernanke speaks. Traders are watching very closely the footsteps of the Fed. This week US labour market will be crucial for markets.
The upcoming Fed meeting December 17th and 18th will decide the fate of Gold by this week’s nonfarm payrolls. If the economic data looks healthy in the eyes of Fed, they force to scale back its monthly bond buying program which may boost the US dollar.
The US economy is recovering in a slow motion. For the month of November the market expects 185 thousand nonfarm jobs in US due out on December 6th. On the other hand, December 13th is the deadline for an agreement for the budget.
INDU-Dow rally all the way to 16100 from 2009 low’s. Now Dow is running in an overbought territory indicating sell-off from higher levels. Equities boosted by Fed’s program.
RESISTANCE- 16200 ABOVE THAT 16700 (HIGHER END OF THE CHANNEL)
SUPPORT- 15960 BELOW THAT 15800. CLOSE BELOW 15800 BEARS HOLD THE DOW.
ALERT- EXPECT A BIGGER FALL at 16200-16700 LEVELS
GOLD-Gold came down to near $1180 level which is any uneconomical level for many mines to operate profitably. If gold comes below $1200, we can see a production cut by mining companies aimed at re-balancing the market.
The world’s largest consumer of the yellow metal, India is suffering from limited supplies to meet the peak wedding season demand. Demand has picked up a little bit, supplies are tight. To ease its trade deficit, India has made it more expensive to bring in gold, the biggest non-essential import item, by setting the import duty at record high 10%.
In Asia’s trading session Gold is trading at 1248.
Intraday- R1 $1255 R2 1258 S1 1244 S2 1240 S3 1235
We could expect in the near term that gold would form a bottom and starts its rally.
CRUDE– US light sweet crude was trading at 93.2 made low at 92.64 in Asia’s trading session. As long as it holds 91.5, it can see some pull back up to 93 95/96. If it closes below 91.5, the next target will be around 85 80 77. We expect the fair value of crude at 80$. Oil turns bullish only above $105.
Go short on every rise for the target 85 80.
USDX– 80.5 is strong support. We expect an upwards move towards 81.5 83 85. Close above 85 produces a fresh rally towards 90 +
The material has been provided by InstaForex Company – www.instaforex.com
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