Intraday Market Thoughts

Silver, USD Near Inflection Points

by Ashraf Laidi
Jul 20, 2020 18:26

GBP, silver and NASDAQ are in control of FX, commodities and indices on due to a combination of improved sentiment from fresh fiscal stimulus programs and positive vaccine results. AstraZeneca broadened optimism after positive results from early vaccine tests. Euro remained supported after the 4 holdout EU nations agreed over EUR 380 billion to be made in grants. EU US Treasury Secretary Mnuchin and Senate Majority Leader McConnell are expected to produce a new fiscal package near $1 trillion. Silver hit a 4-year high as Gold/Silver ratio broke below its 10-month trendline support. USDX deepens its selloff, with 95.80 and 1190 acting as crucial support on USDX and Bloomberg USDX Index respectively (which nears 9-year trendline support). More key market levels are listed below.

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Silver, USD Near Inflection Points - Gold Silver Jul 20 2020 (Chart 1)

Austria, Denmark, Netherlands and Sweden have agreed that the EU's EUR 750 bn stimulus program will comprise of EUR 390 billion in grants and the rest in loans. It all changed for EURUSD on June 23rd when it held the 1.1180s upon Germany's proposed stimulus. It was on June 23rd when Ashraf called mentioned EURUSD's technical flawlessness.

Key market levels

US Crude oil sustains the 38.30-41.50s range highlighted in here while DOW30 continue to fail the top of the June 10 gap before dropping towards the 26580s and remaining well above the 200-DMA at 26300.

Premium Insights' subscribers were issued a long on XAGUSD at 15.20/50 on May 7th, days before the Gold/Silver ratio broke below 100. The trade hit its final target at 18.30 on June 1st.  


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