The week Ahead – pushing for more records

SPX500(S&P) No Signs of Slowing

The SPX500(S&P) looks to recapture its previous record as stocks get back on track after last week’s setback. Bouncing back from the recent steep sell-off, which was sparked by fears of new competition in artificial intelligence, the index looks for another bull run. Despite these fears, traders maintain a favorable outlook, which has been visible in price action after moving above the 6000 level. 6300 is the next target to the upside.

EURUSD Awaits NFP to relieve pressure

After last week’s high-impact news events, the euro succumbed to pressures to fall below 1.0400. With the ECB dropping its interest rate again, officials warned of headwinds for the European economy as this week’s inflation data is set to creep higher. Further warning signs were the quarterly GDP data flatlined, leaving economists to wonder if a recession is just around the corner. The upcoming NFP could alleviate some pressure should the job numbers fall, as 1.0300 will become the new support, with 1.0530 fresh resistance.

XAUUSD remains bullish

Gold jumped to a fresh record as President Trump confirmed his intentions to impose hefty tariffs on imports from Mexico and Canada. The demand for gold happened last week as the Fed held interest rates steady as expected. Jerome Powell struck a hawkish note on further rate cuts, saying that inflation is still a worry as we kick off the new year. 2700 still looks like it will be a firm support for now as more buyers move in to propel the price towards 2880.

 

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