Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Interviewed by Dubai TV, Mohammed Hashad, Head of Research and Development at Noor Capital and member of the American Association of Technical Analysts, shed light on the latest developments in the financial markets:
EURUSD
The euro found a pivotal resistance level, representing one of the most important keys to the trend, precisely the key to protecting the bearish trend around the 1.0350 level, represented by Fibonacci 1.6180, which forced it to trade negatively. As a result, 1.200 is the first official station, and a decline below this level may extend losses to the 1.1 level unless we see a trade above the 1.0350 level.
GBP
The British pound was one of the biggest losers in the basket of currencies. Technically, the pair hovers around the 1.2070 support level and there is a clear contradiction in the technical signals. The simple moving averages started to pressure the price from above. Still, if we aim to sell the pair, we prefer to wait for the confirmation of breaking 1.2070, which extends the losses to 1.1975. Still, if The pair has returned to stability above 1.2150, we may witness some temporary rise to 1.2250 levels, but the general trend is still down for the pound against the dollar.
CAD
The Canadian dollar benefited from the rise in oil and started the first sessions of this week on the rise, and there are signs of a bullish technical structure. I think the Canadian dollar will touch the 1.287 and 1.2930 levels after it establishes strong support at the previously broken resistance level around 1.2780, i.e. a candle close below 4 hours 1.2760 may force the pair to resume the decline again towards 1.2710.
Gold
Gold is trying to maintain the bullish path and touched the $1800 level and found strong resistance around this level; the simple moving averages still support the bullish price curve, but some negative signs started appearing on the momentum indicator that may force gold to some modest decline to retest 1779 before continuing to rise again. The yellow metal needs to continue rising above 1802 to target 1830, but we must monitor the price behaviour around the 1779 level because breaking it opens the door towards 1752, but the path still tends to rise.
Oil
Oil was greatly affected by harmful data after it touched $94.50, and it returned to decline again. However, oil is now stable below the $92 level, and it confirmed breaking the 91.50 support level with the continuation of the negative pressures coming from the simple moving averages. Therefore, I think that crude oil we are waiting for more decline. We target an initial target of 89.80 that may extend to 87.50 during this week’s trading.
DowJones
The rally continues the bullish correction and is based above 33,400; there is a positive motive from the moving average and bullish momentum signals, I believe the target is 33,850, which determines the next direction for Dow Jones; breaking it will open the door to the 34,200 level, but if the Dow Jones returns below 33,400, it may start forming Negative trading around 33,100