 Hello and welcome to the weekly market update with me David Madden that his date is Monday the 17th of June 2019 and the time has just gone 11 of 55 British summer time To be honest, it's been a fairly quiet and subdued start to the European trade week Had a fairly subdued trading session in Asia overnight and that's built over to Europe the same old trade tensions and Due political concerns that we had at the back end of last week trade tension between the US and China heighten tensions in relation to Iran They still persist and they seem to be a little bit of a standstill and they're bubbling away in the background But since it's been said been essentially no new developments have either of those fronts We haven't really seen a whole lot of moves in Asian equity indices overnight and same with European indices today The big announcement of the week would be the Federal Reserve's The Federal Reserve's update on Wednesday, which we talked about more detail Towards the back end of video, but essentially it appears to me They were in a scenario where my credit are going to be sitting on their hands Potentially between now and Wednesday's update from the Federal Reserve So I'll go dive straight in and take a look at some of the major equity markets and see how things are going in relation to the Federal Reserve there's been a lot of speculation of Possibility of the Federal Reserve cutting rates later on this year and if we aren't going to have Rates being cut in July or September the Federal Reserve are going to want to be kind of to lay the foundations for that cut On Wednesday's meeting. So traders is already high expectations for lucid rates at the back end of the year And quite frankly if traders don't get that we could see equity markets move to the downside Or we could see you know a bit of a another leg higher potentially if the Federal Reserve clear that they are willing to cut rates Towards the back end of this year So when I'm covering now, I'll be starting off with the FTSE 100 and then the DAX The Dow Jones and the SP 500. I'll see a bit of a common theme here in relation to the fifthly moving average So the FTSE 100 here managed to create a You know, you know a multi-month higher multi-week high only last week and the market has been drifting a small bit lower But you notice the FTSE 100 is still kind of hovering above this blue line here Which is a fifth of the moving average and that comes into play in a seven thousand three hundred and forty seven and Essentially while the market holds above that metric there that the blue line 50 moving average It's likely that we could see a Continuation of the wider upper trend that's been in play Since basically late December last year and if you do press on higher from here on the FTSE 100 We could be looking at our getting this year. We're here The highs of late September 2018 and that comes into play at seven thousand five hundred and fifty eight But if you do see a move to the downside Support could be found for this yellow line here the water the moving average which comes into play at seventy two forty four On and below that support can be found from the kind of psychology board 7200 mark we did see that region active support and it's only really if you have a size or break below the Trinity moving average this red line here at seven thousand one hundred fifty eight Because then we become worried and that might bring the the early June low of seven thousand and then in seven thousand and seventy nine into play I'll take a look now what's going on on the backs To be honest across a major indices of Europe and the U.S. It's a fairly similar story and this is what this is what I mean about Germs of keeping an eye on what's going on in the markets. So big picture view late December Until until it until early May very positive run quite a sizable sell-off On the on the Dax for similar scenario What do we see here like we saw the FTSE 100 the Dax is holding up It's just about holding above this blue line here. It's 50 moving average Which comes to the play just south of twelve thousand one hundred twelve thousand and eighty seven And if you can hold above that blue line there, it's likely we could see the market press on higher from here And we could be looking at Taking out the mid-May high of twelve thousand three hundred eighteen I'll be on that could take us up toward this region here in around twelve thousand four hundred fifty Moves to the downside even if you drift lower they come a cycle as you bought twelve thousand metric my lack of support And even below that this is the airline here the one or the moving average in eleven thousand seven hundred and Fifty-five might act as support and notice how this red line here the two of the moving average access decent support In early June and that comes to play just just around Eleven thousand six hundred if an active support in the past it makes it more likely that I will do so in the future Obviously, there are no guarantees But if you do you must take all that level then that that could be a sign that this kind of shorter term downward trend Is going to continue and we could see further losses from there with people like you heading back down towards eleven thousand four hundred or indeed eleven thousand two hundred and seventy I'll take a look at what's going on over in the US starting off with the Dow Jones You know, you see kind of a bit of a theme here a decent rally between late December and up as high as early May So, you know a lower low lower high a sizable rally in the last few weeks Manage to create, you know multi-week highs, you know multi-month high but holding above again It's 50 moving average which comes to play at twenty five thousand nine hundred eighty one If you could hold above this area here the blue line the 50 moving average It's likely we could see the market press on higher up around the twenty six thousand four hundred mark or up towards 26,700 Even if you do drift lower support could be found from this yellow line here the water to move the average Which acts as both can support and resistance in the last few months in at twenty five thousand eight hundred twenty three And even if you drop below that again, it could be head back down for this red line the turn to move the average at twenty five thousand four hundred and seventeen and move below that Within could have tension you point to further losses could be looking at retesting the early June lows And regarding the big indices the last one I'll about now is the S&P 500 once again major rally between late December and Late April early early early May Market at a lower low a lower high lower low Quite a steep rally in late May going into early June the highs of June take out the highs of May Holding above this blue line here the fifthly moving average which comes to play at twenty two thousand eight hundred and seventy three And while we hold above it, it's like it's likely we could press on higher and continue the wider upward trend This area here in around two thousand nine hundred twenty one act as a resistance It's also consolidation a few months ago. It might act as a bit of resistance Move to the upside I sure we move beyond it And we could be looking at arguing this area here in around two thousand nine hundred and fifty eight One of the components of doubt theory is that the industry? I know the indices must confirm each other and essentially while the S&P 500 the Dow Jones The FTSE 100 and the DAX while they all hold above their fifth the respective fifth The day moving average is more likely that all those markets will continue to move Continue the wider upward trend that they've been in you can be more confident if you're if you're trading one of those markets And if you're and if you're looking to buy into all those markets if all those markets If you're looking to buy into it, and if you trading for example This P 500 and you're notice that the other markets the Dow the FTSE 100 and the DAX are also above their respective 150 moving averages you can then become more confident about the wider indices in the year in Europe and US Are going to press on higher from here. Obviously, there are no guarantees But it just it just makes it more likely that event will happen subsequently Should the markets all turn over and should they all fall back below their fifth day movie average then you can then you Then you become become more confident then you then you can start to think well Actually, maybe maybe globally indices are going to turn over again Maybe they are going to continue the recent more the shorter term downward trend that's been in play since maybe this could be the beginning of the market Retesting the lows of ever of early June So markets are all moving in tandem with each other You can be more confident that that move is going to continue regardless of whether the move is to the upside or the downside So if the market does manage to turn a bit lower on the S&P 500 support Could be found from this yellow line here the word a moving average which comes into play in 2827 2800 big psychological number That area was it was in reaching from support of a few occasions in the last few weeks and months and also resistance and even And even if it drops below that the water to be the turn moving average at 2771 might act as support It's only really if you take take out the the lows of early June Then we could have you become become concerned and then actually that could be a sign that we're actually look to you I should you kind of move lower and we could be looking heading back down towards the 2700 mark take a look now what's going on in gold It's a gold side of quite a decent one recently, but we are seeing a bit of some signs of some faltering So if you look at the gold market in recent In recent weeks since late May we had a major rally from late May Only last on only in Friday. We had a level not seen on the gold market Since April 2018, so we're talking Well over a year's high. We're talking about a 14 month high On the gold market very impressive run on the gold market, but we can see here I look at the price action this long this long wick here the candle and denotes indecision and If you take it if we have a major rally a very huge move to the upside And then we have a bit of indecision that could be a sign maybe the rally That certainly is coming coming to a complete end It might just continue to push higher but on a slower pace So we could see the gold market give back some of the ground that has gained in the last few weeks And once again, we're lower on the day today on the day again So we could drift a bit lower again We could head back down towards kind of 1324 1320 And then even if you have a more sizable correction, we could be looking any back down towards kind of 1310 1300 But keep in mind if you look at the price action since August last year They get a big picture has been the gold has been has been pressing higher So if you do manage to kind of take off the recent highs I've been around kind of 1358 We could be looking at targeting this area here at 1366 there. They're about Levels not seen once again since April last year and also January 2018 So keep an eye out for 1366 should we continue because of the wider upper trend I'll take a look what's going on now in the oil market Oh, that's got a similar move to equities You know look at late December Until late April on the break through the market at a major rally But since then we've had a fairly sizable move to the downside Now we peer for the time being to found a bit of a floor in around here Even though the kind of the near term view still remains negative But if we can't hold above these recent lows, we could see the market Managed to get a regain a bit of ground head back up towards this area here potentially in runs Kind of $65 a barrel And it's only really if you kind of retake the turkey moving average which comes into play at 68 spot 14 Because then we become more confident that the recent move Since April that negative moves come to an end and the wider upper trend is going to continue If you do manage to press a lower from here keep on it for $60 a barrel It's a big cycle on your number on a few occasions at the beginning of the year We saw it's awesome consolidation in that region And if you drop below that keep on it for this region here in around the kind of 57 spot 50 No similar situation at the back end the last year. It did act. We saw some consolidation in around that region Just take a look now. What's going on on WTI? The price action looks similar to Brent provide with a size for the rally between late December up until Late April then that's when the kind of market started started to added to turn lower Very similar situation whereby The more recent term move is clearly bearish But in around the kind of low kind of 50 no just below $51 a barrel that does appear to be some support in that area No, I know we are edging lower So if you can hold above the recent lows, you know, there's possibility now We might manage to kind of try to retake the recent high in at 54 spot 75 And if you go beyond that you could be looking up heading towards the kind of $57 region or perhaps up as high as the the kind of say 60 barrel per dollar per barrel 60 bucks per barrel area If you take out the recent lows keep on offer this area here in a just above 50 dollars a barrel 50 spot 36 Any moves below that could take us back down towards 48 or perhaps even this region here in at 47 Have a look now. What's going on in the currency markets? So even though we did see a bit of a surge in the euro not too long ago given the Mario drag is the ECB's update was It was bullish. I want to let bear as dovish as our trainers. I hope we saw a decent move In the in the first week in June both the market does appear to be turning over and stuff yet again And the wider negative trend that has been in for a little bit months now It does appear to have resumed if we do manage to kind of break below the kind of one spot 12 area We could be like you're trying getting this region down here in around one spot 11 10 and a break below that could take us down To the kind of psychology port and one spot 10 region If the recent kind of push higher that we saw here Is to kind of press on we need to be kind of retaken out We need to be kind of taken off the recent highs here in that one spot 1347 and then to be honest really you really need to be kind of honestly taken out kind of one 14 Particularly the mid-may high of one spot 1448 before we before we become more confident at the kind of wider Trend for the recent months the negative trend has come to an end and we are kind of snapping higher Take a look now. What's going on on the pound versus the US dollar? So the pound versus us dollars been in a fairly consistent negative trend since early May We can see here that for a fairly size of a selloff between early May and Late May the market did manage to pull back some of the ground but appears that the the Markets turning over itself yet again We're not too far away from the recent lows if you do break take take on this area here this low here That will be quite bearish. We'll be back to kind of printing multi-month lows We could be looking at retesting this area here in one spot 24 76 any moves to the upside We need to kind of take could run into resistance in around this region here in around one spot 27 at 62 But we need to be you know at the very least kind of take me up a kind of 128 region here Before we could potentially look to head back up towards 132 Sorry back up towards 130 the big psychological number of 130 And I also want to talk about Bitcoin. There was some news out that the Facebook are considering Launching their own cryptocurrency and if a kind of a tighten of the tech industry Such as Facebook are considering getting involved in cryptocurrencies that can add credibility and respectability to the wider sector So we have seen a decent move higher in Bitcoin today and also actually in the last few weeks as a whole So you could take a look at the price action of Bitcoin So wider view obviously The kind of all-time high dollars achieved in December 2018 had a terrible year in 2018 and the true kind of fashion We spent quite a few months in the doldrums and kind of low volatility But in the last few weeks and months basically since this is late April. We've had a move to the upside We can see here at the market managed to a few occasions early in April close above the tour They move the average which is you know often seen as a kind of barometer for you'll be a market being bullish or being bearish Once that in a close above that it drifted back down towards the tour to move the average and quite frankly Since then it's been in a fairly impressive up moved solid move to the upside We fit a level today not seen since May last year so we're talking about a 13-month high on Bitcoin Which when you see kind of headline saying what the multi-year highs or a multi-month high speed here We can have an answer to the to the bullish move If you can continue to press on higher from here Or are currently in around 9,300 the next big psychological number to look up for on the upside will be 10,000 and of course if you go beyond 10,000 we could have been looking towards this region here in around the 11,000 could have 750 mark up around here If you do see a move to the downside of Bitcoin support could be found from this region here in around 8,000 Supported we just see some as we call it consolidation in that region and then more and also in around this area here in around 7,471 Let's take a look now at some of the big events of the week ahead The week ahead can be found on our website if you've got a cmcmarkets.com under news and analysis That's the section where a good portion of the updates for self and other analysts, right? Place our content for some that's also on the inside section of the trading platform Scrolling down starting off And tomorrow Tuesday the leader of the conservative party here in the UK the the leadership contest is going to kick off We're going to have a live televised debate That could potentially see volatility in the in the British pound on the back of that Turning our attention to Wednesday the the Federal Reserve has a great decision Like I said earlier on the video There's been a lot of talk That we're going to break cuts from the Federal Reserve this year if the Federal Reserve Looked to be far more neutral and less dovish it than the market are expecting We could see a bit of a pullback in that those stock markets are keeping there for the fifthly moving average on The S&P 500 Dow Jones the DAX and the FTSE under because they're all pretty much just hovering above it for the time being but we could see a possibility of a Move to the downside if the Fed aren't as dovish as the markets are pricing in keeping in mind US employment at a 50-year low Wage growth is comfortably above inflation rate and both recent retail sales figures from the US suggests US consumers are happy to spend So there's some concerns that the the dovishness of the Fed has been already kind of overpriced into the markets Conversely if the mark if the Fed appear to be quite dovish We could see a jolt on higher about 50 moving average White's act has kind of a platform before the next move to the upside in global stocks Wednesday, we also have UK CPI keep an eye out for sturdy volatility on the back of that on Wednesday We have for full your figures follow Barclay Group the home developer this week We have the slack IPO on Thursday. We the Bank of England interest rate decision We have the Bank of Japan interest rate decision on Thursday as well Darden restaurants fourth quarter results over in the US What we have is we have Kruger Program rather over in the US have orderly update on Thursday and on Friday. We have the flash PMI results from Germany and France and any kind of signs of slowing slowing Slowing economies of Germany France could put pressure on the euro Finally if you have any comments to make on this video or any of the other videos we've made here at CMC markets Please feel free to leave review on good reviews. Thank you very much