Daily Technical Analysis of Gold,Currencies,and Indices 23/8/202Daily Technical Analysis for Gold, Currencies, and Indices - 26/8/2024
Introduction
Welcome, I am Mohammed Qais Abdulghani, a financial markets expert. Today, Monday, August 26, I present to you my detailed outlook on the major currency pairs, commodities, and financial indices. Before diving into the technical analysis, he highlights key economic data expected to be released throughout the week that could influence price movements, including the Consumer Confidence Index, GDP, unemployment rates, and the Personal Consumption Expenditures Price Index.
US Dollar Index (DXY) Analysis
The US Dollar Index (DXY) has declined following statements by Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium, where Powell emphasized the need to adjust monetary policy and begin lowering interest rates, thereby boosting confidence in reaching the 2% inflation target. However, he noted that unemployment rates remain within acceptable levels. The US Dollar Index’s stability below the 102 level suggests a potential continuation of its decline, with expectations of reaching levels of 99 and 97 in the upcoming trading sessions. The weaker dollar benefits the EUR/USD pair.
EUR/USD Pair Analysis
The EUR/USD pair continues to gain momentum, with a potential breakout above the 1.1000 level that could propel prices towards 1.1350 in the medium term. This positive scenario will remain unless the pair breaks below the 1.1000 level. Similarly, the GBP/USD pair continues to gain, with prices holding above significant levels.
GBP/USD Pair Analysis
The GBP/USD pair is exhibiting a positive trend. If it succeeds in breaking above the 1.3250 level, it may rise towards the 1.3360 and 1.3500 levels. However, if it fails to surpass this resistance, it could revert to a downward trend.
USD/JPY Pair Analysis
The USD/JPY pair is facing downward pressure. Should it break below the 145 yen per dollar level, the pair might target levels of 140 yen and 134 yen per dollar.
USD/CHF Pair Analysis
The USD/CHF pair continues to face downward pressure. If it breaks below the 0.85 level, further declines toward 0.837 and 0.824 could be expected.
AUD/USD Pair Analysis
The AUD/USD pair continues to gain, with prices holding above the 0.66 level, supporting an upward trend towards 0.69 and 0.75. Similarly, the NZD/USD pair is also gaining.
NZD/USD Pair Analysis
The NZD/USD pair has successfully broken above the 0.62 level, supporting a bullish trend towards levels of 0.64 and 0.65.
USD/CAD Pair Analysis
For the USD/CAD pair, continued trading below the 1.600 level supports a bearish scenario targeting levels of 1.34500 and 1.33000.
GBP/JPY Pair Analysis
The GBP/JPY pair remains in a bearish trend. Prices staying below the 196 yen level support this trend, targeting 184 yen in the short term, with a potential extension to 170 yen in the medium term.
EUR/JPY Pair Analysis
The EUR/JPY pair is trading below the 166 yen level, supporting a bearish scenario targeting 158 yen and 153 yen.
EUR/GBP Pair Analysis
The EUR/GBP pair remains in a downward trend, with expectations of further losses if prices remain below the 0.84500 level, targeting 0.83750 and 0.83.
USD/TRY Pair Analysis
The USD/TRY pair trades within a positive scenario, with expectations of further gains if prices exceed 34 lira, targeting 34.8 and 35.5 lira. Any retreat above the 33 lira level is considered a correction only.
Bitcoin vs. US Dollar Analysis
After several sessions of sideways trading, Bitcoin has successfully surpassed the 60,000-dollar barrier. Stabilizing above this level supports a bullish scenario, targeting 68,000 and 75,000 dollars.
Ethereum vs. US Dollar Analysis
Ethereum is attempting to surpass the 2800-dollar level. If successful, it could see a bullish wave towards 3200 and 3600 dollars, potentially reaching 4200 dollars in the long term. The positive scenario will be invalidated if Ethereum fails to exceed 2800 dollars.
Ripple vs. US Dollar Analysis
Ripple continues in an upward trend, with prices remaining above 55 cents, supporting targets of 65 cents, 80 cents, and potentially reaching 1 dollar.
Gold Analysis
Gold maintains its upward momentum with trades above the 2460-dollar level. The positive scenario remains intact as long as prices stay above the primary ascending trend line and the 55-day moving average, supported by expectations of a rate cut by the Federal Reserve.
Oil Analysis
Crude oil is attempting to recover previous gains. If it breaks above the 77-dollar level, a rise to 80 and 83 dollars per barrel could be expected. The bullish scenario will be invalidated if it breaks below the 73-dollar level.
Silver Analysis
Silver maintains stability above the 29-dollar level, with potential increases to 30.5 and 32 dollars if prices exceed 30.5 dollars.
Natural Gas Analysis
Natural gas is under downward pressure, targeting levels of 1.80 and 1.40 dollars if prices continue below 2.20 dollars.
Dow Jones Index Analysis
The Dow Jones Industrial Average is rising amid hints of monetary easing. Surpassing the 41,000-point level would support a rise to 42,000 and 40,000 points.
S&P 500 Index Analysis
The S&P 500 Index maintains an upward trend with expectations of continued rise after surpassing the 5700-point level.
Nasdaq 100 Index Analysis
The Nasdaq 100 Index retains its positive trend as long as it remains above 19250 points, targeting 20800 and 22000 points.
Russell 2000 Index Analysis
The Russell 2000 Index retains its positive trend as long as prices remain above 2150 points, targeting 2320 and 2440 points.
FTSE Index Analysis
The FTSE Index maintains an upward trend with targets of 8680 points, provided it remains above 8400 points.
DAX Index Analysis
The DAX Index maintains an upward trend with targets of 19250 and 20000 points, as long as the price remains above 18750 points.
CAC Index Analysis
The CAC Index is attempting to eliminate selling pressure, with expectations of rising towards 7882 points if it breaks above 7600 points.
Nikkei Index Analysis
The Nikkei Index retains its positive trend, targeting 40,000 and 45,000 points as long as it stays above 37,000 points.
