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28/5/2014 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, May 28, 2014.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    XAUUSD is still the most watched instrument since yesterday gaining of the US major equities indexes which rose in its first session this week underpinned by new good economic data could not be ignored to push S&P 500 higher further over 1900 psychological level.
    S&P 500 could reach these levels basically on the release of the FOMC’s recent meeting minutes which have shown tries for finding a way to the opposite direction lowering its easing stance further with keeping the reinvestment of maturing assets, after the beginning of raising the interest rate.
    The greenback has been underpinning by these minutes and also the US equities with no expectations of beginning of selling soon of the $4.34 trillions of assets in the current Fed’s way of tightening its policy.
    These minutes impacts have materialized on the greenback versus its currencies rivals last week but it took its toll against the gold this week too to watch XAUUSD getting away from its adopted side way of trading around 1300$ psychological level since falling from 1392$ following Crimea referendum.
    The gold came under pressure with oil prices easing down on hopes for having quick solutions in the East of Ukraine with the new president to drive Brent to be traded now below its trend line support extended from 106.42 to 107.02.
    From another, the risk appetite improving could contain the market into the new week to make the gold less attractive and unable to hold trading near 1300$ at least currently to reach 1260$ per ounce during the Asian session, after breaking its previous supporting levels at 1285$, 1279$, 1274$ and 1268$ and by God’s will in the case of retreating further, it can meet other supporting levels at 1231$, 1216$ before 1200$psychological level which can be followed by its lowest level of last year at 1180$ which could hold supporting it at the end of it to rebound from 1182$,while rising gain can be met by resisting levels at 1308$, 1331$, 1342$ and 1363$ before its recent peak at 1392$ again.

    Kind Regards

    FX Market Strategist
    Walid Salah El Din
    Mob: +20 12 2465 9143
    E-Mail: mail@fx-recommends.com
    #1 fx-recommends, May 28, 2014
    Last edited: May 28, 2014

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