The Dow Jones Continues to Break Records

Kashkari and Bullard made speeches. They both took a dovish position on the FOMC's current monetary policy. The dollar strengthened yesterday. As we noted, the JOLTS data provided support for bears who trade the EUR/USD pair. Tomorrow data on crude oil inventories will influence the market. Analysts note that summer and, with it, vacation season, are ending, which might affect the cost of oil and the greenback. We think that investors might find gold appealing. The metal has now pushed away from the significant resistance at $1279 per troy ounce, which is a 61.8% Fibo correction from the down wave since last July. The support is at $1249.32, where a 50% Fibonacci correction is located. It is entirely possible that at these values it may again interest traders. The US Dow Jones, meanwhile, continues to break records but, as we know, the higher the climb, the more painful the fall. Technically, the 161.8% correction has been passed, and the next target on the daily charts will be 24100 points. The bulls’ confidence largely depends on political factors.

Among today’s fundamental news: traders will probably focus on Canadian real estate data, which usually come out after 12:00 noon GMT. Numbers on new housing starts and construction permits are expected. Technically the USD/CAD pair has formed a V-shaped base, which gives hope for a trend reversal. Resistance on the daily charts is located at 1.2735, which is entirely achievable if the macroeconomic news is good. The short-term support is at 1.2410, which is the lowest low since the second quarter of last year.

Nikolay Dudchenko, exclusively for Olymp Trade

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