 Good afternoon and welcome to the weekly market update with me David Madden Today's date is Tuesday the 1st of September 2020 and the time is just gone 12 10 British summer time and it's been a fairly mixed start to the European trading session the FTSE 100 is greatly underperforming Banks and and all stocks are weighing on the on the British market But it is worth noting today is the first trading day of this week for the another stock exchange because it was a bank holiday in the UK Yesterday as I was closed there from yesterday. We saw modest modest losses on Eurozone equity markets So we're now seeing it's almost like the FTSE 100 is catching up with the negative sentiment that happened in Confidential Europe yesterday, even though we've seen a decent rebound in Eurozone equity markets today The German market for the DAX is doing fairly well big on the on the back of a positive revision to the German to the German Forecast for 2020 We've also seen some mixed economic indicators as a mixed manufacturing figures Both in Asia and also from Europe the Kaishin survey of Chinese Chinese Manufacturing was Was was was quite strong. I came in at as high as level since 2011 That's been of assistance to both high-grade copper the metal and in turn mining companies that are listed in London If our is the Eurozone as far as Eurozone is concerned things are a bit mixed The German figures were pretty reasonably reasonably in line with expectations and in terms of growth on the month Where we've actually seen reasonably weak figures out of Spain The best of the bonds was actually the Euro is actually the UK in terms of European manufacturing It hasn't been the most inventful of training sessions But we have seen a fairly decent move to the downside on the FTSE 100 What I'll do with this video as I always do I'll quickly run through the week ahead then I'll talk about the major indices the big currency pairs and commodities So first things first, let's go to the week ahead article, which can be found on a website CMC markers calm and under insights So take a quick scroll down now We can see here that tomorrow we have full-year figures for your figures from bar developments the UK homebuilder We also have Q1 numbers tomorrow from bound from Brown Foreman They're the spirits company listed over in the US. They make the well-known Jack Daniels brand On Wednesday, we have the beige book update on the from the US We have second quarter numbers out from docu sign on Thursday Also on Thursday, we have a raft number of various countries around the world are posting their latest Services PMI numbers. We also have first-time figures from restaurant group the London listed food restaurant chain on Thursday as we do every single Thursday US jobless claims will be posted And the highlight of the week is going to be US non-farm payrolls It's typically seen as the most important economic indicator of the month. I'm speaking of non-farm payrolls Feel free to sign up for the non-farm payrolls webinar that I'm hosting You can be found on our website CMC markers calm under insights down here to webinars an event It's on Friday the 4th of September at 1315 be British summertime Feel free to add at the sign up for that If you can't catch the the live version of it It will be a recording of it on our YouTube channel and also posted to insights on our trading platform For those of you that don't know it says can be found under news analysis second option down So now that we've kind of run through the major events of the week Let's take a look at what's going on on the on the big indices starting off with the footsie 100 And as you'll see after I go through and a few more indices It's fairly clear that the footsie 100 is at the weakest of the bunch as far as the big indices in Europe and the US Are concerned so we can see here that since the lows of March at a decent valley into June Like many other major indices around the world But we've seen a lower low lower high lower low lower high and yet again What could be another lower low so in the last few months you've been trending lower on the on the footsie 100 We're currently trading in around 5,894 if you press on lower from here and we take out this area here in around 5,852 we could be heading back back down to where this zone here in a 5,800 Note the kind of downward trend on the last few months if you do press on higher from here Resistance could be encountered in around the kind of 6,000 mark big psychological number and if you go beyond that Resistance could come into play from this blue line here at the 50 movie average Which comes into play at 61 30 and notice how on a few occasions that metric acted as resistance in the past And if a metric as has been of importance in the past It makes it more likely it'll be of importance in the future although there are no guarantees Turning our attention now to us coming on over in Germany. Like I said the German market is is is doing well today On the back of a kind of positive revision to the German GDP forecast by the German government German market has had a decent value between late between late Between late March and into July where it a multi-month high the highest level seen since February when the crisis began Pandemic that is but even though we haven't the highs of August haven't Didn't didn't take out the highs of July It's still in the kind of broader upward trend and while we hold above this blue line here the fifth of the movie average It's likely that the wider upward trend is going to continue If you press on higher from here and if we retake the August highs I could put us on track for this area here the highest seen in late July And if you got me on that Could take us up towards in around the kind of 13,500 market of a level of scene Just at the beginning of the hell crisis was kicking in in late February If you do drift lower from here sport could be found from this blue line the 50 moving average Notice how on a few occasions it has acted as support in the past and the 50 moving average comes into play at 12,764 and even if you have a kind of size will break below that We could head back down towards 12,500 and it's only really if you're going to take out this red line here the Trinity moving average in that 12,194 because then we began to get a bit concerned because that's that's facet It has been on a you know a major upward trend the last few months So now that we've covered the big markets in Europe. Let's take a look what's going on over in the US Starting off with the Dow Jones Well, I said anything about the Dow Jones Although yesterday, you know, it did push higher ended firmly in the firmly in the red And even though the wider trend to the upside is still very much in play Keep it notice the price action on yesterday's candle and we can see here that they got a body of the candle This red rectangle here completely engulfs And this body here is to the body of the of the of Friday's candle and notice how we've a few days In a row where the markets pushed higher then we have quite an aggressive move through the downside So it appears this candle here yesterday's candle has a potential to be a bearish engulfing So that is the case. We could be looking at Moving lower. So we have the lows of today's session have taken out the lows of yesterday's session so far But obviously this session isn't over. So it depends where things go So if we do have for this to be confirmed that it's a bearish Reversal we would need to see the market continue to move lower from here if that is the case We can look ahead and get back to our this general zone here in around 28,200 and if you go below that we can be heading back towards 28,000 itself big psychological number But before we get kind of carried away with ourselves, let's just take a look at how far we've traveled So the the market has been in a solid upper trend for months the wider trend is clearly still very much in intact So if we do press if we have a bit of a short-term move through the downside Nothing to say that the wider upper trend of the last few months isn't going to continue So if you press on higher from here, we could be looking at testing the highs of yesterday And if you go beyond that we could then be looking at heading up towards levels last seen in mid to late February in around 28,900 That is the the Dow Jones, but let's take a look now at the S&P 500 which is in better shape The S&P 500 has just been on a steady run the last few sessions, you know quite often racking up Fresh all-time highs. We're still in fairly decent shape You know, we're expecting the the S&P 500 when cash trading gets underway to open North of 3,500 so the kind of the sentiment continues to be positive in that So if you do press on higher from here, we could be looking at retesting yesterday's highs in around 3,526 and if you go beyond that we then we can have in fresh all-time high territory We could be like in targeting 3,500 and 30 40 and so on and so forth If we do look to to move lower from here We could spot support from this zone here in around 3480 and if you go below that this zone here in around 3450 but to be honest, you know we I've had a phenomenal run the last few months So it's only really even if you have a very aggressive pullback We can still head back towards 3350 or even even the 3300 self and still be within the wider upper trend Take a look now at the big currency pairs starting off Euro dollar So Euro dollar has continues to be in a wider upper trend if you take a look at the price action We're not too far away from the kind of psychological important 120 mark We're still very much in a proper trend. In fact today's level I'm not mistaken last seen over two years ago. It's about a 28 month high We're looking back at levels last seen in May 2018 for for for Euro dollar, so it's clearly in Continues to be in a strong upward trend If you do press on higher from here because we're currently in around one spot in 1981 If you press on higher from here and we take out 120 we can then be looking at heading up towards one spot 2140 This area here a price last seen in April 2018 And if you do see any move to the downside We could see you potentially see fresh buyers enter the fall because let's face it buying on the dip in the last few months Has been a fairly popular strategy So if you do move lower from here this general area here in around kind of 118 down to around one spot 1755 that area there could actually support or possibly even down towards this price area here in around one spot 1696 Take a look now what's going on with pound dollar once again The dollar is weak across the board So today's session the pundits in its highest level since mid mid December that was on the back of the UK election When the exit poll came out and showed pointed towards a large Conservative victory in a general election which turned out to be the case So we're talking it once again multi month highs on pound dollar The trend is clearly very much to the upside if you press on higher from here because we're currently in around one spot 3468 Pressing higher press press on higher from here We could look at retesting the December highs in a one spot 31 one spot apologies one spot 3515 And if you go beyond that we could look at me getting back up Well, this isn't really a whole lot of clear areas of of Over of old old resistance potentially news new old support potentially resistance, but in around the kind of one spot 36 area The level that scene in May 2018 that was kind of one spot 36 zone could act as resistance If you move lower from here, so a bit of consolidation in the kind of one spot 32 zone And if you go below that we could be looking at the kind of head back towards a kind of big important number of one spot 30 Looking to rat things up shortly now coming on to commodities starting off a gold So we just talked about the weakness in the US dollar gold is trading US dollars So the decline in the dollar has been a great assistance to gold recently So we can see here the gold, you know, here fresh all-time high Only at the beginning of April we obviously had quite aggressive sell-off in the middle of April and August We had quite aggressive sell-off in the middle of August But if you look at the last price action in the last few sessions, we've seen a few higher highs and higher lows So the market isn't touching higher yet again We're currently trading at 1988 if you press on higher from here We could be like the heading towards 2000 or the recent highs of 2015 This area here, and if you go beyond that we could then be looking at retesting the all-time highs Any move to the downside and go and gold could find some support from the late August lows in around 19 or to 1900 and if you go below that, you know, the faith that the moving average isn't too far away behind in 1893 It's only really if you can take out the lows of mid-August in an 1818 63 because then we get a bit concerned and should that be the case we could see return back toward the 1800 mark Lastly, I take a look at Brent crude oil the November contract So the oil market has gone a under has undergone a larger huge recovery from that from late April We're not to hit, you know, multi-month highs five-month highs in August to be honest It's been reasonably quiet ever since then We've seen the the lows get higher, but we haven't really seen a whole lot of corresponding higher highs So the bias remains to the upside. We're currently trading it south of 46 dollars a bar or in around 45 spot 89 if you press on higher from here, we could be and if we retake take out the recent highs Which come into play around 46 46 spot 60 We could then be looking at heading up towards 50 dollars a bar, which you're going to be the next big next big number to look out for any move to the downside in In all could fight support from this blue line here The fifth remove the average and that comes to play at 44 spot 25 And if you do have a fairly sizable correction You can head back toward this zone here on a few occasions this area in on 42 acted as support That's often this week. Thank you for listening. Stay safe. Have a good trading week and good luck