Forex forecast for the week of December 26-30 2016: Investors - oil and gold after the correction!

25 декабря 2016 - Fx4News

Forex rate forecast gold XAU / USD on the week 26-30.12.2016

Although gold sales are strong, metal correction in the last couple of months up, which can be called essential not observed. Last 6 days Gold traded in a narrow 1125.75 -1142.31 the flat and given the strong growth greenbacks players should not expect reduction of metal courses in 1100/1120.

The dollar and gold has historically move in opposite phase. States continue to delight participants positive market statistics. Despite the decline in mortgage lending in November, home sales in the primary and secondary markets have grown, despite the pessimistic forecasts of economists, investment banks with Wall Street. The housing market is a strong indicator of the "health" of the economy, and in this regard in the financial markets begin to emerge a strong opinion that the FOMC in 2017 will fulfill the promise and raise interest rates three times. This of course is only a rumor and the Fed may again be limited to one increase in interest rates, but the market living these rumors and rumors on the side of the US dollar buyers.

Gold trading recommendations for the week: Sell 1143/1155, take profit in 1120.

Forex forecast for Brent crude price in the week 26-30.12.2016

Two reasons for investors to wait for a moderate decline in oil prices.

First , greenbacks in the foreign exchange market is trading at a maximum of thirteen, and the players are not hurrying to take profits on long positions. Last week, the dollar index basket to USX demonstrated correction of only 1%, after which traders saw again the demand. Since hydrocarbons are traded for US dollars, greenbacks growth rate leads to a decrease in oil prices. Both tools are currently ostayutsyas at significant highs, and one of them should fall. Who will it be: the dollar or oil? More likely, it would be oil, as from the United States accounts for the strong economic data and OPEC's decision to cut production + from 1 January 2017 is already priced in and the new positive factors yet.

Second , the report Baker Hughes once again showed an increase in the number of US rigs by 13 units, to the level of 523. This pattern occurs eight consecutive weeks. Number of drilling platforms at a maximum year. In this regard, it is necessary to wait for an increase in oil production and rising inventories of oil, which also put pressure on the quotes.

Brent crude oil trading recommendations for the week: Sell 56,00 / 58,00; take profit 54,10.

S & P500 analysis and forecast for the week 26-30.12.2016

At the auction of the week for investors in the S & P500 worth waiting lateral trade. Many institutional investors are now on the Christmas holiday and in this regard, the market will be in hibernation. Active trading will only begin from January 2. Next week will be rich in important macroeconomic statistics. Given the current positive dynamics of key economic indicators, players will see a strong ISM report on business activity and employment that will allow the S & P500 index set a fresh historic high. In this regard, if they see a decrease in quotations in the flat area of the lower boundary of 2250-2280 this week, market participants, it is worth to open positions Buy.

S & P500 trading recommendations for the week: Buy 2250/2230 take profit in 2281.