{"id":173486,"date":"2020-07-10T12:27:23","date_gmt":"2020-07-10T16:27:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=173486"},"modified":"2020-07-10T12:27:23","modified_gmt":"2020-07-10T16:27:23","slug":"week-in-review-gold-tops-1800-pound-smiles-while-dollar-slips","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/week-in-review-gold-tops-1800-pound-smiles-while-dollar-slips\/","title":{"rendered":"Week in review: Gold tops $1800, Pound smiles while Dollar slips"},"content":{"rendered":"
July 10, 2020<\/div>
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By Lukman Otunuga, Research Analyst, ForexTime<\/a><\/strong><\/p>\n

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The trading week kicked off\u00a0on a risk-on note despite coronavirus cases rising across the globe.<\/span><\/p>\n

Equity markets in Asia, Europe and the United States rallied, even as the\u00a0<\/span>World Health Organization (WHO) reported a one-day high<\/a>\u00a0for global coronavirus cases.\u00a0<\/span>Investors who were searching for a negative correlation between stock markets<\/a>\u00a0and Covid-19 infections were left empty handed after riskier assets gained across the board.<\/span><\/p>\n

On our weekly technical outlook<\/a>, we discussed the possibility of the Dollar extending losses, Euro gaining ground and Gold hitting $1800. As the mood improved on growth optimism, the\u00a0<\/span>Japanese Yen and other safe-haven<\/a>\u00a0assets came under fire.<\/span><\/p>\n

Mid-week the\u00a0<\/span>Reserve Bank of Australia was under the spotlight<\/a>, with the Australian Dollar weakening after the central bank left interest rates unchanged at the record low of 0.25%. Much attention was directed towards the Euro on Wednesday thanks\u00a0<\/span>to lacklustre economic data warnings from the European Commission.<\/a><\/p>\n

The momentum witnessed across stock markets showed no signs slowing on Thursday despite a record daily\u00a0<\/span>increase in US COVID-19 infections and sharp rise in deaths.<\/a>\u00a0However, Gold found ample support from this negative development,\u00a0<\/span>surging to levels not seen in 9 years above $1800.<\/a><\/p>\n

Given how\u00a0<\/span>US earnings season kicks off next week<\/a>, more volatility across financial markets is certainly on the cards.<\/span><\/p>\n

Dollar Index drifts lower.<\/strong><\/p>\n

King Dollar looks tired and slightly defeated on the daily charts. Prices are struggling to push back above 97.15. Sustained weakness below this point may open the doors towards 96.00.<\/span><\/p>\n

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Euro remains choppy\u00a0<\/strong><\/p>\n

The Euro\u2019s movement\u00a0against the Dollar was choppy, rough and rocky this week. A breakdown below 1.1270 could open the doors towards 1.1200. If 1.1270 proves to be reliable support, prices may rebound towards 1.1360.<\/span><\/p>\n

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Pound pushes higher\u00a0<\/strong><\/p>\n

Sterling has appreciated against every single G10 currency this week. GBPUSD bulls are greedily eying the 1.2750 level. With the 50 SMA on the cusp of crossing above the 100 SMA, the technical remain in favour of bulls.<\/span><\/p>\n

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USDJPY breakdown setup in play<\/strong><\/p>\n

The USDJPY has broken below the 107.00 support level. A weekly close below this point may open a path towards 105.90.<\/span><\/p>\n

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Commodity spotlight \u2013 Gold\u00a0<\/strong><\/p>\n

After charging to levels not seen in nine years, Gold may experience a technical correction back towards the $1780-$1765 regions before bulls gather fresh momentum. Although prices have cut through the psychological $1800 level like a hot knife through butter, a weekly close below this point could trigger a much-needed correction.<\/span><\/p>\n

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Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Lukman Otunuga, Research Analyst, ForexTime The trading week kicked off\u00a0on a risk-on note despite coronavirus cases rising across the globe. Equity markets in Asia, Europe and the United States rallied, even as the\u00a0World Health Organization (WHO) reported a one-day high\u00a0for global coronavirus cases.\u00a0Investors who were searching for a negative correlation between stock markets\u00a0and Covid-19 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-173486","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=173486"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173486\/revisions"}],"predecessor-version":[{"id":173488,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173486\/revisions\/173488"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=173486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=173486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=173486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}