Major Stock Indices Overview
S&P500 US Index
The S&P500 index is moving up for the last 5 consecutive days. The index hit the 3350.34 price level with a gain of +0.03%.
The index is trading near the supply zone around 3353.16-3398.03 levels, which is the new high going back to February 21 at 3351.86 level.
The all-time high price for the index is up at 3393.52 level. This is about 1.24% away from the all-time record high.
If the index tests the supply zone and shows bearish evidence to the downside, this could push price lower to 3202.86 level. The S&P500 index is trading above the 50MA and the 200MA.
The European shares are ending the week higher. The FTSE 100 has risen 2.28%. The Bank of England stated that it has more headroom to act to support the economy. The BoE also said that negative rates are not being considered.
The FTSE 100 index is trading above the 100MA but still below the 50MA. There are two zones worth mentioning. A supply zone around 6477.2-66.38 levels and a demand zone below current price around 5335.4-5464.1 levels.
The FTSE 100 index also found resistance level around 6295 level supported by the 50MA. The index is still trading below the 200MA.
Nikkei 225 Index
Japan stock index fell 0.39% last week. The Nikkei 225 index found support at 21848 level trading below the 50MA and above the 100MA and 200MA.
The index has been moving sideways since last June, 2020, between 21848 and 23160 price levels.
If the index breaks above the resistance at 23160 and tests the supply zone above current price at 23387 level, the next potential target would be the support level down at 21848.
If price breaks below the support level at 21848, the next target would be the demand zone around 20234-20762 levels.
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Forex Market Forecast
As the European/London closed for the weekend, the USD (+5.09%) the stronger currency in the market. The NZD (-4.58%) and AUD (-3.18%) were the weakest currencies again the greenback.
US Dollar Index
The US dollar index continued to fall and trade below 20MA. It reached the demand zone around 92.090-9.740 levels, bounced back up, and came back to retested a second time.
If price continues to move higher and breaks above the previous high at 93.962, the next target is the 94.680 level. If price could not break the previous high and breaks below the 92.090 level, the next target is to test the demand zone below around 90.440-91.010 levels.
The COT report shows more bears than bulls. With 59.9% long vs. 55.8% short, the overall sentiment is mixed. We might see a sideways movement at least for the first couple of days of this week.
The EURUSD tested the supply zone around 1.19180-1.19950 levels and moved lower finding a support level at 1.17430. Price created a new demand zone around 1.16950-1.17810 levels suggesting more buyers stepping into the market.
If price shows enough bullish evidence to the upside, price will break above the 1.19950 level. Price still not breaking the previous low at 1.16950 level.
The COT report shows more bulls than bears with 13% long vs. 11.4% short.
The GBPUSD moved higher to test the supply zone around 1.30710-1.32050 levels. Price moved lower but found support at 1.29962 level. If price breaks this support and takes the previous low, the next target is the 1.28000 level.
If the support level holds and price keeps moving higher, the next target is the 1.32600 level.
The COT report shows more bears than bulls with 19.8% long and 30.5% short. More traders are dumping their shorts and increasing their longs with a net difference of 3.2% suggesting a potential shift in the momentum.
The AUDUSD is testing the supply zone around 0.72110-0.72950 levels and moved lower. The price is still trading above the 20MA and not breaking the previous low at 0.70762. If price reverses back up and breaks above the previous high, the next target is the 0.73250 level.
If price breaks below the previous low, the next target is the demand zone around 0.69720-0.70200 levels.
The COT report shows more bullish than bears with a net 31.4% long vs. net 17.6% short. The total change in net short positions jumped to 3069 positions suggesting a potential shift in the momentum.
The NZDUSD has been moving sideways between 0.65800 and 0.66980 levels. Price is trading below the 20MA.
If price breaks below the 0.65340 level, the next target is the 0.64490 level. If price finds enough buyers to push it higher above the previous high, the next target is the 0.68710 level.
The COT report shows more bears than bulls with a net 30.8% long vs. net 47.4% short. The NZD is the weakest currency in the spectrum against the greenback which may support a shift in the momentum to bearish.
The USDCAD reached a higher timeframe demand zone and showed some bullish evidence to push the price higher. Price is still trading below 20MA. A new demand zone was created around 1.32300-1.32960 levels. If price continues to move higher and breaks the previous high, the next target is the 1.34832 level.
The COT report shows more bulls than bears with a net 10.6% long vs. net 31.2% short. This suggests more buyers are interested in buying USDCAD and pushing prices higher.
The USDCHF is testing the demand zone for the second time with some bullish evidence to the upside; The price is still trading below the 20MA. Last week, price broke below the previous low at 0.90586 level suggesting a bearish momentum. If price continues to move lower, the next target is 0.90105 level.
The COT report shows more bears than bulls with a net 37.8% long vs. net 16.9% short. There was an increase of long positions for Swiss France against the dollar.
The USDJPY tested the demand zone around 104.080-105.040 levels and moved higher to find a resistance at 106.537. Price retraced back down and still trading beowl 20MA. Price might try to break above the previous high and test the supply zone around 106.800-107.280 levels. This is a good opportunity to sell if we get some evidence to the downside.
The COT report shows more bears than bulls with a net 19.9% long vs. net 14.7% short.
The gold market was breaking all-time highs with a current price at 2034.48. With COVID-19 and a weaker dollar, we expect to see more gains in the gold market. The price might retrace back down to correct before continuing up. The next potential target is 2176.89 level.
The Oil market is impacted by COVID-19 pandemic and the slow in the world’s economy. The price has been moving sideways unable to break above the resistance level at 42.81. If price breaks above this resistance, the next target is 46.29 level. Otherwise, the price might move lower and test the 34.44 level.
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