 Hello and welcome to the Monday market update with me Dave Madden. Today's date is Monday, the 38th of July 2018 And the time has just gone 11 at 3.55 for the summer time It's been a pretty quiet start to the European session that this week Equity markets in Europe are mildly in the red. There's a fairly large sell-off in Asia overnight And it's been a similar mood similar story to the last week or so or essentially concerns of our trade wars global trading relationships and also a bit of a few Headline and a few large company figures from the United States which failed to measure the expectations as slightly sourced market sentiment here in Europe But even though it's pretty quiet day today for the in the European session We do have a fairly busy week ahead in terms of economic announcements and corporate stories The week ahead article can be found on our platform So if you go to cmcmarkets.com and one of the news and analysis section you will find our week ahead article So looking ahead to tomorrow. We've a bank of England interest rate decision We have first I figure it's from BP third third quarter figures from Apple on Wednesday, we have first I figure it's from Capita on boat Wednesday and Friday we have these services and manufacturing and services reports From Europe looking ahead to the back end of the week. We have the beginning of the UK The banking the figures from the very different British banks such as Royal Bank of Scotland Lloyd's and also Barclays On Thursday, we have the Bank of England interest rate decision and also the inflation report on Friday Which will be the first Friday of month. Of course, it's going to be the US non-farm parents report So taking a look now in a few of the major markets The Foxy 100 broadly speaking of the last couple of weeks has been kind of creeping higher Essentially after the major rally that we saw between March and also between May has drifted a little But we do appear to be kind of again regaining those losses between between mid-May and the and late June Mark has been fairly quiet to be honest in terms of market move size and volatility But broadly speaking it's been edgy higher And so the kind of up the wider upward disappear at the get the wider upward trend is continuing And should you continue to push on from here? We could be looking at targeting 7,794 the late the mid-June I and if you go beyond that level, we could be looking at heading back towards the 7,900 area It's only if you're gonna take up this area here in in around 7,565 Will then would actually be looked to drift a bit lower And if you do manage to push lower from there a sport could come into play in around the 7,600 area or at this red line here, which is the Sorry apology 7,500 area this area area here And if you drift below that sport might be found at the the red line at the journey moving average Which comes to play at seven thousand four hundred and seventy eight Take a look now on the Dex So the short market has been an upward trend for the last couple of weeks Managed to kind of pull back some of the losses that has sustained in June I've actually managed to actually trade above and hold above the journey moving average this red line here So it's obviously a bit of it out the the journey moving average is often seen as you kind of brawn better for What was the overall kind of sentiment data and if the markets north majority moving average It's optimistic and if it's below it is pessimistic, but bearing in mind We just managed to trade above it While while we hold above it the outlook is likely to remain positive So should he push on higher from here on the on the on the DAX We could be looking heading up towards 13,000 big psychological number. I forgot beyond that. We could be looking at retesting the may high of 13,200 and if you do manage to drift back below the straight line The journey moving average which comes to play at twelve thousand seven hundred and seventy two Support might be found from this yellow line here the 100 a moving average which comes into play at twelve thousand five hundred and seventy one Or indeed perhaps as low as twelve thousand five hundred itself here And if you do take out the the late tune the region low of twelve thousand three hundred and ninety This this that this right can here. We could be pointing back down towards further losses and a cuba Looking at retesting the the late June low and this price area here take a look now at the S&P 500 over in the US S&P 500 has been in a classic example of an upper trend since April That's the example of higher highs and higher lows all the way along in recent sessions We need to see a fairly sizable sell-off on Friday given the Nasdaq's relatively alert tech component The sell-off in some of the big tech stocks as I she managed you can have Drag the S&P lower with it as well. So the S&P recently has underperformed in relation to the Dow Jones But nonetheless, it's still firm. It's still firmly in the in the upper trend It's been in for a number of months So if you do manage to drift lower on the S&P 500 sport make them into play in a two thousand eight hundred Or perhaps even this area here two thousand seven hundred and ninety one notice how it acted as support Recently and prior to that it acted as resistance So that area has been important in the in the recent past. It's likely to do speak important again in the potential near future Even if you do drift all that area sport might be found in in its blue line here at the 50 moving average at two thousand seven hundred and sixty-three Notice how does all the consolation apply to action in or around that area only at the beginning of the month So that area was significant in the past. It may be significant again in the future If the wider upper trend does come into play Does does does continue we could be looking at retesting the recent high of two thousand eight hundred forty eight And if you go beyond that we could be looking at up to two thousand eight hundred and seventy seven We'll now take a look at the nasdaq 100 I guess as I mentioned we did have a fairly size of sell-off in the S&P largely driven by the decline in the tech sector and also you can see here Friday session that this red candle here. It's a very clear example This is a very good indication of our How part of the the sell-off was But notice how at the market has been in a classic example of an upward trend Since earlier April only last Wednesday There's actually an all-time ice to give indication of how strong the market has been performing in the in in in a In recent history, but like I said, we have a fairly fairly good example here on the deep the sizable sell-off this red Can't hear in fact this red camp here from Friday is actually could be described as a bearish engulfing because it Manages actually pretty the sell-off and it managed to be kind of engulfed the previous day's gains So this could be a sign when for further losses in the near term and also notice if you look at the MACD Histogram MacD indicator, you can see how positive and some of us in decline as now firmly swung into negative territory So the market's moving lower the rate the the pressure from the sellers is increasing. So that combined with What could be described as a bearish engulfing here could point to the further losses on the nasdaq 100 Should we drift lower we could we could see support coming to play from this blue line here 7181 notice how there they're about they managed to act as support in recent history So once again, it could be significant in the near term And even if you go below the 50 moving average this area here at seven seven thousand and seven 76 Has act as been the as a consolidation area and a fairly important price point recently So therefore it could actually act as a policy significance in the near term If the wider upper trend does manage does manage to continue We could be looking at retesting 7,500 and of course, you know, any who's beyond that would be yet again fresh all-time highs Taking a look at what's going on on the commodity front on the gold market Gold remains in its tower trend. I did a class example of a tower trend since April We've seen no kind of signs of the of the gold market Stapping out of that downward trend that the lows that we that we We dropped to a couple of weeks ago. We're actually the lowest level seen since July last year So we're not too far away from one year lows We're still not are still very much in the in the downward trend and if you do manage to continue to drift lower from here We could be looking at targeting 1204 and then I move south of 1204 We would bring 1200 into play as it's a big psychological number I think I'll south of that. We could be looking any back down towards the The lows of mid March 2017 which come into play at 1195 Eddie moves with the upside in gold may run into resistance at this area here 1236 or perhaps 1250 big solidation there on if you do have a size will bounce back 1266 could also act as an area of resistance for the gold market Turning attention now to come up to currency pairs, you know versus US dollar So the euro dollar has managed to be as been range bound the last couple of weeks As I'm really as I'm as I really get a move in either direction, but notice how we're still a firmly Lower from the April from from from the April and also from March So the major set up that we saw in April Seems to have found a bit of support and a bit of a bottom in around the one spot 1510 area That being said, we can't risk in a city get north of one spot 50 So I we remain south of the one spot one. Sorry apologies one spot 1850 I remain south of one spot 1850. It's like that the outlook is gonna mean It's gonna remain negative for for euro dollar, but that being said we see that for decent support from the one spot 1510 area as well so and in recent sessions the fifthly moving average which comes into play in around the one spot 1677 area does appear to be actually that's a very as a pretty important Acceleration point. So the outlook is still quite so quite Still a bit on the bearer side, but the same time we haven't seen any kind of for any kind of major sell-off recently So we could see potentially new buyers enter the fold in around the one spot 1510 area Turning our attention now to the pound versus the US dollar bearing in mind We do have a bank for the very decision this week. So that that that is to be noted if you're trading the British pound Been in a major decline since April all the way down class example of a downward trend, you know higher highs and higher lows And if we do manage to continue in the downward trend, we could be looking at retesting this this The the July low of ones by 29 57 As we could be looking at targeting down towards 129 128 any bounce backs may run into resistance I'll put this blue line here of the 50 moving average which comes to play at once by 32 43 Notice I only a few weeks ago the 50 moving average did actually managed to act as a resistance recently so once again, if it was a significant importance in Recent history it could be of a particular importance in the near future as well And even if you do manage to push higher above the 50 moving average the next year to keep a mile 4 will be the late may high of Once back 34 72. Well, that's all for me this week. Thank you very much