 Hello, and welcome to the Tuesday market update with me David Madden. Today's date is Tuesday the 28th of August 2018 and the time has just gone 11.30 British summer time Well, the big news over the last couple of days has been the strong session in the United States in the only on the Watery last night after the US and Mexico reached a trade agreement. There's really boosted invented sentiment in the US We saw the S&P 500 which are new all-time high But as I can composite also here in an all-time high and the Dow Jones closed above 26,000 is the first time the Dow closed north of 26,000 since early February this year And it's also managed to lift sentiment in Europe and in Asia as well, but to a lesser extent Also, what's been the news as well that the US dollar continues to be weak at the back end of last week We heard a several several updates from central bankers at the Jackson Hills Symposium over in the in the US I suppose the main one was from Jerome Powell the head of the Federal Reserve and Mr Paul gave an upbeat view of the US economy, but it wasn't it wasn't exceptionally hawkish. It was as hawkish as investors had expected and given that the US dollar saved Beginning of last week or maybe two weeks ago wasn't quite decent It wasn't was it wasn't quite decent shape. Traders use that as excuse to kind of cash in there put their long positions on the US dollar and the dollar index has been weaker ever since Mr. Powell's update, but by large US dollar in the grand scheme of things isn't fairly strong and It is traders are expecting Majority traders respecting a rate hike from the Federal Reserve next month and then on this and even the Bloomberg Probability interest rate probability is factoring in about a six-day probability of a rate hike for the Federal Reserve in December So things are second quite optimistic for the US But just it just seems to me that the word at the Mr. Powell's update wasn't as hawkish as investors had hoped So taking a look at the week week ahead events the week ahead can be found on our website If you go to cmcmarkets.com and under news and analysis, you'll find the week ahead article So looking ahead to tomorrow Wednesday, we have second quarter Growth figures GDP figures from the US. We have first-half figures from restaurant group on Friday And also on Friday. We first have figures from all mutuals. So as you can see, it's a fairly quiet week In terms of actual updates this week. So moving on to a few of the major markets Oh, like I said, European stock markets are getting out of to a fairly decent start Today the footsie was obviously closed yesterday as his bank called in the UK So the the footsie it seemed to actually kind of pay to catch up as content Europe did it had a fairly probably speaking I had a fairly positive session yesterday As we can see here from the footsie 100 it's been largely range bound for the last number of months But one that holds north of this red line here the truth a moving average which comes into play at seven thousand four hundred and ninety Well, we remain north of that It's likely that the outlook for the footsie is going to remain positive and we can see here in the past session The market has been edgy higher. It's at a level not seen as high today I'm not not seen since the middle of August So let's go to show you that there's a slight increase in policy sentiment The markets managed to kind of move back above the one of the moving average Let's now look if you see a line here as heading towards the 50 moving average this blue line here If you do manage to clear the 50 moving average which comes into play at seven thousand six hundred and thirty four Let's definitely watch out for to the upside will be seven thousand seven hundred and if we go beyond beyond that It turns it will be looking towards seven thousand seven hundred and ninety four It's only about a size of a break south of this red line here the 20 moving average Which comes into play just south of seven thousand five hundred. It's only to massage the break south of that But then actually we actually open the open the paved the way for further losses Take a look now. What's going on over in Germany with the tax So that's so the tax has been in in in In an upward trend for the last number of sessions But still we haven't actually gotten back up as far as high as a turn the moving average So while we remain south of this red line here the turning moving average which comes into play at just just north of 12,700 or she apologize. Yeah, just just just just shy of 12,700 the outlook is likely to remain To remain negative, but if you do manage to take to retake 12,700 next year to keep on that for would be the mid-July high of 12,888 and we'll go beyond that big cycle as important 13,000 number will then come into play Move to the downside of the tax may find some support from this blue line here The fifth day moving average which comes into play just north of twelve thousand five hundred Keep it and if you go south of that we could be looking heavy back down towards this Consolidation here in around the kind of twelve thousand three hundred and forty twelve thousand three hundred thirty region there And if you go south of that we could be heading back down towards The idea the the August law which comes which comes into play just north of twelve thousand one hundred and twenty So as I mentioned the SP five hundred a certain old fresh all-time high last night Take a look at the SP five hundred now If the market's heading an all-time high that is a various that that is a that tells you everything needs to know about how How bullish the rocket is as you can see here at the market is pushing higher here which you know, it's an all-time high If you look at the maxi indicator of the maxi histogram We can see that momentum recent sessions that smoke from negative territory to positive territory So the market pushing higher the rate of positive momentum is increasing So the momentum is with fires is with the bulls so you can more confident That's the upper move is going to continue if you're gonna need to push in higher from here We'll be looking at safe. I'll be next increments of two thousand nine hundred and ten twenty someone's a fourth Any moves to the downside may fight to support in around the two thousand nine hundred area or perhaps back as low I'll back it down to towards the two thousand eight hundred and seventy seven area which would be in the kind of out-of-hours high back in January Take a look now at the Nasdaq one hundred service duration here for by the nasdaq one hundred without to Close it. I have a record close last last night. I will also saw is that the market here is looking towards It's heading is pointing for another rather all-time line on the nasdaq one hundred So get an indication of our positive sentiment is service duration here By the on the Mac the indicator Mac the histogram momentum as a slow deposit territory is actually expanding So as a rocket pushing higher will be that that's being confirmed by the steady increase in positive momentum So the rocket's moving up and the rate of positive momentum is also increasing as well So we'd be more confident that that this move is going to last if you do continue to push on higher from here Makes me love to watch out for will be the psychologically important number of seven thousand six hundred And if you might to drip lower because some support coming to play in around the 7500 or perhaps even low at this blue line here at the 50 moving average which comes into play at seven thousand three hundred and eleven Notice how in recent weeks and months That blue line the 50 moving average has access support and if it's active that support in the past It makes it all the more likely it will act as support again in the future, but obviously there are no guarantees Take a quick look now at the doll as well as it mentioned the doll close above 26,000 last night the first time a close of all that level since early February So I give an indication of how bullish the market is the markets pushing higher here So it's in a steady upward trend along with other US indices So it's important that the averages can confirm each other is that's a component of doll theory We can see here on the Mac the indicator Mac the histogram is a steady increase in positive momentum So you can be more confident that the upward move is going to last if we push on higher from here next year to keep I'll forward be this region here from late January in around the 26,300 area there thereabouts And he moves to the downside my thoughts and support back in at 26,000 or as perhaps even low as a 20 25,800 820 in around this area here Take a look now at the gold market and the cold market that a fairly decent bounce back in recent weeks This level here of gold this discount will hear off from Thursday the 16th of August Goal fell to us to On that day felt to the law it's lowest level since early January 2017 And as you can see goes at a 30 size will bounce back since then There's a steady increase in positive momentum So it is possible that that this upward move is this upward move We've seen in the last few weeks could continue if you manage to push on higher from here We could be looking at targeting this blue line here at the fifth removing average Which comes to the play at 1226 notice how it's we get that that the fifth removing average has access both support and resistance As way back in April when this downward trend first began So there's possibility that that metric may come into a make me come to play again if we do much to push on higher above 1226 and they're keeping off or as well could be 1236 notice how it actually book them of support and resistance that area 1236 only in June and July If the market does turn over on itself again And does resume the wider downward trend that has been in since April keep an eye up for this area here in around the 1285 233 area are perhaps even slow as down as Sorry, I said 1285 at menace 1185 11 233 area are perhaps even low as 1175 and then if you go south 1175 Recubo looking at retesting the recent low of 1160 Take a look now at the Brent oil market See even though we've seen broadly speaking the mark the Brent the oil market moving lower We've seen hot we seen if you take a look at the highs they're hot They're lower highs and they're lower lows But we can say that the market found decent support from the Trinity moving average this red line here So there is been a small bit of time below the Trinity moving average and the market has been pushing higher We're at multi-week highs right level level is not seen since it's actually early just early July If you do continue to push on higher here, we could be looking heading up towards heading up towards assist in These recent highs here of dish shive a dollars a barrel if you go beyond of those levels which are last seen in Early July beyond that we've been heading up back up towards 80 spot 89 Any moves to the downside may find some support in around the 72 spot 50 area and the big area of support to keep on that For will this be will be this red line here the Trinity moving average which comes into play at 70 spot 85 There's not as how we did find some decent support from it Only a few weeks ago, and if you go south of the Trinity moving average that could pave the way for further losses Take a look now at WTI It's a very similar situation whereby the market hasn't been overly strong recently But I have to find decent support from the Trinity moving average So once again After hitting a multi-year high in June the market has been broadly been pushing lower But in a very good of near-term time frame the market has been edging higher Right level is not seen since early July if you continue to push on higher here And if a retake $7 a barrel killer to keep an eye for will be the late for early early June High early July high of 71 spot 69 if you go beyond that up towards 72 Any move to the downside in WTI may find some support in round the 67 spot 50 area It's an area of in around the block in that area has been very focused on a nation in recent weeks and months But also the big year to keep a lot of work will of course be the the trend line here The Trinity moving average which comes into play at 65 spot 17 Notice of the market actually a fairly decent support from it here and for that distance support in the past It makes it all the more likely over five days in support in the future Tony tension now to The currency pairs So even though you the euro has been in a downward trend against us dollars since April That's in a fairly decent bounce back in the euro largely to do with the US dollar weakness And if you draw a line from a draw trend line from the highs of July down through the high So sorry from the highs of June down to the highs of July we can see that that Trend line I can have resistance and I was respected on a few occasions Trump July, but we've actually now managed to actually break north of it. I think that comes into play in around In around the 116 60 mark and if you manage to hold above that area It's likely we could be heading back up towards once about 1850 and there they're about to that region But if you do manage to drift back below that we could be heading back down towards the 115 area on the euro versus the US dollar But it is worth noting that it is quite significant that the market actually managed to actually break above that Trend line resistance is seeing as that for several occasions show up July that actually managed to act as a as a barrier for the rising euro versus the US dollar And I see if it at least finish up with a pound versus the US dollar The pound has also been in a downward trend versus the versus the US dollar since April since April But uncertainty around Brexit has really kept kept pressure on the British pound that being said sterling has been creeping it creeping a bit higher And we've seen a fairly steady increase in positive momentum So in the near term, we could see the market creep higher. I know that I'll be I'll be keeping up What would be the from the kind of from the mid from the low of mid July Which comes to play at one spot 2957 between one spot 2957 and 130. We could see some resistance coming to play around there If the market does manage To break north of that we could be looking at heading up towards once by 3250 and there even solidation in around here But if the market does fall back into the wider downward trend We could be looking getting it back down testing the recent lows of one spot 2661 and if you go south of that we can get it back down to a one spot 2590. Well, that's all for me this week. Thank you very much