The Week Ahead – Looking to the 3rd Quarter
Weekly outlook covering Where AUDUSD(The Australian dollar) and UKOIL, SPX 500 analysis and key support and resistance levels shaping market expectations.
AUDUSD steadily creeping higher
AUDUSD(The Australian dollar) continues to benefit from the greenback’s weakness as prices steadily move higher. However, with no concrete news coming out of Australia this week, all eyes will be on Wednesday’s FOMC minutes to inject some volatility into the market. As the new Fed Chair grapples with economic problems, including subdued employment numbers from Friday, we could see a continuation of the Aussie’s fightback. The pair is moving towards 0.7000 and 0.6870 is the first support to break.
UKOIL drifting lower
Oil forecasts for the remainder of the year look at a drop towards the $60 region as the market enters a phase of cooling off. Geopolitical tensions have eased as the ceasefire in the Middle East continues to hold. In addition, the risk factor for another upturn seems to have disappeared, leading to sellers attracting more sellers as price action remains bearish. However, any signs of a turnaround could see a sharp spike higher. 70.00 is a critical support, with 74.50 the target ahead.
SPX 500 extending gains
The S&P 500 remains bullish even though indices began July with a slight sell-off. After a disappointing jobs report from the NFP, adding to an unemployment reading that remains high, the US economy looks to defy a slowdown as America wakes up from its 4th of July weekend. However, slower consumer spending and rising jobless claims mean that the index might pullback further from its bullish run. With the FOMC expected to give more guidance this week, the Fed could pull stocks lower. 7600 is the next target higher, with 7250 a key support.
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