 Good morning and welcome to the Monday at market update with me David Madden today's date is Monday the 21st of October 2019 and the time has just gone 10 15 for this summer time and it's been a recently positive start to the European stock market session We see equity markets ever so slightly higher Fortune eval utility is very very low and things are likely to be quiet today because we've had no No major economic indicators of the out of Europe today and none are on the horizon and it's all focused on Brexit In relation to Can in the next 48 hours? We're gonna find out where the Boris Johnson the Prime Minister of the UK can get the deal that he brokered with the European Union past in the House of Commons and that is essentially going to be the focus Of the next 48 hours as far as the financial markets like this particularly here in the UK was There was a bit of optimism There's a fair bit of optimism last week we saw a decent move higher in the British pound and The major volatility was on sturdy last week has been replaced by low volatility this week Things are fairly quiet, but this morning the British pounds already traded above 130 We're not we just ever so slightly 130 against the US dollar that is it's also gained ground against the euro and the Japanese yen it's Volatility is a bit low, but essentially that's going to be the focus and for the time being the financial markets seem to be a bit optimistic In the next 48 hours, Mr. Johnson can get that can get that deal approved That's basically the kind of the big the big focus of the next day or so Touching over that there was a back in the last week stock markets in the West had a very sizable reasonable sell-off On Friday afternoon. We had some negative stories a couple of big companies Such as Johnson and Johnson and also Boeing. We also heard announced last Friday that on this week on Thursday US vice president Mike Pence We're gonna speak in relation to China and Mr. Pence is known to be quite a hawk when it comes to China so there's a fear that Mr. Prince if you can wheeled out to be the kind of you know take a tough line with China keep mind We're now in late October in mid in December the United States is set to increase tariffs So that's set to introduce tariffs on Chinese imports And that is going to be that the kind of the next phase of the US China trade talks So it's fairer or fearful that mr. Pence could be drafted in to take a tough stance in advance Again, if you know let the kind of the next round of kind of negotiations I could set that set the scene set the tone for the next round of negotiations Well, I do now is I take a quick look at the week ahead article We could run through that and then after that I'll have a take a look at some of the major markets The week ahead article can be found on a website if you go to see the markets calm under insights or news analysis You can find it. So looking ahead looking ahead to tomorrow. We have a German IFO basic library numbers We have third quarter numbers from Metro Bank here in the UK on Wednesday Third quarter figures from Boeing on Wednesday as I said at start of the video Boeing had a Quite a negative day on Friday. Just gone. There was There was updates from the company which was suggest employees of the company deliberately misled the the aviation regulator in relation to the Safety of the the Boeing 737 max aircraft first quarter figures from Microsoft produced you out on Wednesday on Thursday here in the UK rollback of Scotland would produce its third quarter numbers on Thursday we have a flash manufacturing PMI flash PMIs If I'm Germany and France, that's going to be closely watched I could consider that give what's going on the state of the eurozone economy the most recent manufacturing figures from Germany points At the sector as I had a lowest level of ten years and keep my Germany is the powerhouse of Europe ECB meeting on Thursday On on Thursday, we also have the third quarter figures from Amazon and on Friday We have third quarter figures from Barclays here in the UK Start off this week in terms of charts with the British pound versus US dollar. Like I said is this morning Only only only want to go at the British pound traded north of 130 against US dollar So we take a look at the price action So ever since late September decent move to the upside so higher high higher low and the higher high So in a firm upward trend in the pound dollar If you take a look at the MACD Instagram acting like the indicator we can see the steady rise in positive momentum so The upward move in the pound versus the dollar be confirmed by the steady increase in momentum And if you manage to press on high if you know if you get if you get back above 130 and if you can hold above 130 The next area to keep an eye for to the upside could be this area here Level last seen in early May and the high of that is comes to play in one spot 31 78 If you do in their hand, I'm actually kind of drift lower on the British pound versus the US dollar Recruitment like you had it back down towards this old year There's big acceleration in a 128 and if you go below that this red line the turning moving average one spot 2715 could I collect a support or if you have a fairly sizable correction We could head back to one towards this zone here in that one spot 26 So I take a look now what's going on with the Euro versus the US dollar So since early October we've seen a fairly decent move to the upside in the Euro versus US dollar The steady increase in positive momentum suggests that the momentum is with the buyers if you press on higher from here We could really target this red line here the turning moving average Which comes into play just north of one spot 12 in the one spot 12 or seven And if you go beyond that we could really get right this area here the highs of early August in around one spot One spot 12 49 If you manage you're going to drift a bit lower and pull back from this This is all here in around one spot 11 10 one spot 11 one spot 11 this area here could act as support And if you drop all that support potentially be found from this blue line here the 50 moving average I'm exceeding our qualifications recently it acted as Resistance so it's possible that all resistance could become new support and that comes into play in at one one spot 10 34 as I mentioned European equity markets of a touch higher this morning a Bit optimistic in relation to Brexit, but they're not a Fears aren't getting ahead of themselves If you take a look here at the FTSE 100 We can see that Africa that the multimodal lows that were achieved in October He's got about to level last seen In February we can see here at the market has been pressing higher, but Keep on this red line here the truth a moving average It's a failed a couple occasions to get above that So it seems that that region for the time being is acting as resistance and while we remain south of it It's like you could possibly could see Further move to the downside notice how on a few occasions the eternity moving average well There's actually resistance here, but I can support here and here So and it's actually resistance here So it's like it's looking like it that this metric could be important to keep an eye on keep man for in the near term If we do manage it can keep a load and we do manage to kind of turn over and set yet again We could be looking at retesting the kind of seven thousand metric But you know put on the same side if we did mention you you know get back above push higher and Move back above that would you move the average it could potentially be packed as support I can then use the kind of a as a jumping off point for further moves higher and it could target this this this area here at a 7,440 or even up to this is old here 7,470 so that that area could be the next area of resistance should be managed to press on higher from here and retake The 200 a moving average Taking a look what's going on over in Germany keep mine the on the back of the well The optimism in relation to Brexit pushed the British pound much higher last week which had softened the euro So a combination of soft euro and the hopes in relation to Brexit being sorted out help the Daxi a level Not not seen for over a year. So we're sort of very much in that upward trend On the on the Daxi and if you hold above that this is over here in around 12,600 we slightly we could see further gains being made in the in the Daxi and if you press on higher from here We could be looking at acting. This is old here in around 12,887 And if if we do have a better move to the downside and we take out 2,600 this zone here in around in around 12,500 could act as support and if you do unless you're going to press on that lower from there You know in around the kind of 12,300 zone may act as a support again, but I'm keep mine We have had a fairly decent move from the month of October. So it's been a while since we've seen a size book pullback So this we could be in the it could be in the office for one should things not go as planned Should things not go smoothly as far as Johnson wants them to go in relation to Brexit take a look now at the US The Dow Jones US markets are a good chip They're not an amazing ship, but they're in very good shape The broad review for the US markets is that for taking a look at the price actions as August We've seen all the lows along there. I'll be getting higher. So market They're right so that the trend is to the upside And if you can manage to get a essentially hold above the fifth to move the average is blue line here If you can hold above that it's likely we could Continue in the wider more positive move and we could be like your retest If we can be retesting this zone here north of 27,000 in around 27,000 kind of 100 in around here And if you go beyond that, we could be like your target either the September highs in around 27,300 They're there abouts and then if you go beyond that we could be like you're testing the old-time highs Like I said, US markets are not too far away from the all-time highs So they are good shape just a bit concerned at the highs of September failed to take out the highs of July And the high and what we've seen so far in October the highs of October so far have failed to take out the highs of September. So We you know an upper trend is defined in a series of higher highs and higher lows we're seeing higher lows or not seeing higher highs So just be wary that so we could be it could be a tension for a particular period of consolidation We may not always going to move because in a very kind of classic upward trends But the but the wider view is still is the positive And even if you do manage to Drop below the 50 moving average support could be found in run can see 26,400 There has been previously a bit of consolidation in that area And if you go below that this red line the 2D moving average could act as support in at 26,130 Take a look now at the part of the S&P. I've under fairly similar situation We're by since August by and large the lows we've seen have been higher Submarkets, you know and it's come to be above its 50 moving average this blue line here So things are look quite positive once again The highest that we witness in October didn't take out the highs of September and I just saw September Didn't take out the all-time highs that were achieved in July But nonetheless the broader upward trend is still in place So if we do manage to press on higher from here, we could make your targeting 3,000 big psychological number and then if you go beyond that up around 3,023,022 to get at the highest ever achieved last month Move to the downside support could be found for this blue line here They fit the moving average and that comes in the play in around 2,948 and if you it's only really if you have a size of break below that But then you start to think oh wait, maybe maybe we're heading back down towards the lows in mid-October in around 2,880 odd take a look not going on on the the gold market So the wider view is the very much to the upside since August We've had a phenomenal rally in the gold market. It went on to achieve a six-year high in September So the wider trend is still clearly to the upside But if you take a look at the price action since September we've had a lower low a lower high a lower low Lower high and we're still we're now sitting sitting sideways But if you do manage to take off this level here, that would be another lower low That we're going to suggest that we're going to in for further decline. So If you hold below this line here the blue line the fifthly moving average, which comes to the play 1506 you'll below that it's likely we could see a potential for the pressure to continue pressure in the gold Could see it retest the October loads in around 1460 and a break below 1460 would take you know be another lower low And I could suggest we're heading back down towards this zone down around here in around 1450 1453 to kind of 1430 at this sort of zone If on the other hand if you imagine going to press on higher retake 1500 get back above the the fifthly moving average Keep on that. I think it can be looking retesting the early October high at 1520 I think I'll be on that. It could be taking it targeting the late September high in around 1535 and then if that's the case then we could be looking retesting the highs of early September Quickly, I'm gonna have a take a look at the old markets Before we wrap things up Taking a look at WTI first of all, this is the price action Over the last month's been very much to the downside in the wake. So we had the jolt higher in the immediate wake of the The Saudi the Saudi the drone strikes in Saudi Arabia But since then we've had a slice of the move to the downside in the old market Now it is we're pointing out that We're well off the we're off clearly off the lows of October and we do appear to be kind of edging higher But if we have seen you know, I've got in the higher highs and higher lows But it's very much in the downward trend. So if you do manage to kind of continue on the press on higher from here It could be looking at retesting The one hundred to move the average which comes to play at 55. It's about 63 We can see it recently acted as a distance on a few occasions. So my like position in the near term again I'm gonna be on that could take us up towards the turn to move the average just north of 57 dollars And then move beyond that could take us up towards the zone here It'll become a 58 but we can't really ignore the kind of wider downward trend So if you do manage to get a press on lower from here I could and if you do manage to get a push lower We could be looking at retesting Well, the the mid-october lows in around this area here in around 51 spot 41 And below that could take us back down towards the early October lows just north of 51 itself And then if you go below that we could be looking at targeting psychology the psychology important 50 bucks level It's a fairly similar chart on Brent We had an aggressive sell-off Since mid-september on and similar situation whereby this candle here the long wick in it Company with kind of looking back at hindsight appears to be a hammer formation So we have seen the market kind of press on higher from there And we've seen higher highs and higher lows, but we're still you know holding below the fifth of the movie I'm so the outlook still isn't particularly good But if you can continue to creep on higher and we managed to retake the fifth of the movie average I could be looking at a backup towards this red line here the dirty movie average You can see there's quite a bit of consolidation in around it previously And that comes into play at 64 spots 77. I'll move beyond that could take us up forwards In mid-september high event at 65 spots 79 But if you could continue to hold below the 50 movie average it's possible you could market internal overall itself yet again Let's retest the the early October lows in a 56 Spark 71 Well, that's all from me this week tune in next week. Thank you very much