News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
Dow Jones, Nasdaq 100, and S&P 500 Tech Forecasts for the Week Ahead

Dow Jones, Nasdaq 100, and S&P 500 Tech Forecasts for the Week Ahead

James Stanley, Senior Strategist

Dow Jones, Nasdaq 100, S&P 500 Forecast: Bullish

  • It was another week of strength for US equities, with all of the Dow, S&P 500 and Nasdaq 100 putting in gains on the week.
  • The big story in stocks is the outperformance of the Dow. While the Nasdaq has been ripping for some time, the Dow finally put in a strong move above the 35k level.
  • The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.

US stocks gained again this week even with another +5% inflation print being released, this time for the month of July. The optimism, however, is that more evidence seems to be pointing to at least some of that inflation being transitory in nature, which could allow for the Fed to remain ‘pedal-to-the-floor’ on the accommodation front. And this has helped to keep investors behind the bid in US equities even despite the warning from FOMC Vice Chair, Richard Clarida, last week that the Fed may be ready to begin tapering asset purchases by the end of the year.

That comment helped to spark a rise in US yields and the NFP report last week brought more of the same. US yields continued to increase this week until that inflation print was released: But the big mark on inflation was on Friday on the heels of a disappointing US Consumer Sentiment report.

That shift in yield did have some impact across equities as it helped the Dow Jones outperform the Nasdaq, which has proven to be a more rates-sensitive market as expectations over future FOMC policy have vacillated so far in 2021.

The Dow Jones put in a strong topside move this week, sustaining a breakout beyond the 35k level that had provided resistance from early-May into last week. Prices pushed above that level on the heels of the NFP report, and after a check-back to support at prior resistance on Monday, bulls drove and prices ran up to another fresh all-time-high in the Dow.

Dow Jones Weekly Price Chart: Fresh All-Time-Highs

Dow Jones Chart

Chart prepared by James Stanley; Dow Jones on Tradingview

For levels, taking a shorter-term look at the four-hour chart: There’s potential support around the prior swing-low in the 35,250 vicinity. But, realistically, its that 35k level that held as resistance for almost three months that’s the obvious point of nearby support. Below that is another prior swing low, taken from around 34,600 that could be used for invalidation of short-term bullish trend approaches.

Dow Jones Four-Hour Price Chart

Dow Jones Chart

Chart prepared by James Stanley; Dow Jones on Tradingview

Nasdaq 100

The week ended better than it started for bulls, as the Nasdaq had pulled back on Tuesday and Wednesday, and even started Thursday’s US equity session below the 15k psychological level. But a big move on the open propelled prices back above that marker, and prices trended higher through the rest of Thursday and Friday trade.

At this point the high-flying index still appears to be struggling to sustain the move above the 15k marker; and the recent focus on rates likely hasn’t helped. But, the trend has remained strong here and buyers again proved their bias with another week of strength in the index.

Nasdaq 100 Daily Price Chart

Nasdaq 100 Chart

Chart prepared by James Stanley; Nasdaq 100 on Tradingview

Taking a shorter-term look at the index below, we can see where the Nasdaq has been mean reverting over the past couple of weeks. The current zone could be a challenging one as there’s been a few different resistance inflections here thus far. A breach above could re-open the door for bullish breakout strategies but, outside of that, support in the 14819-14859 range could be attractive for bulls looking to add exposure.

Nasdaq 100 Four-Hour Price Chart

Nasdaq 100 Chart

Chart prepared by James Stanley; Nasdaq 100 on Tradingview

S&P 500

The last three days of the week helped to push the S&P 500 to yet another fresh all-time-high. After the mid-July pullback in the index, bulls have been large and in-charge and there’s no sign yet of that letting up. There was a big of resistance around 4416 that showed up in late-July and remained into the first week of August. This level could be looked to as nearby support potential, and below that is a zone of interest running from the approximate 4364-4384.

On the resistance side of the matter, the 4500 psychological level is of note, and at 4482 is a 161.8% Fibonacci extension from that mid-July pullback.

S&P 500 Daily Price Chart

S&P 500 Chart

Chart prepared by James Stanley; S&P 500 on Tradingview

--- Written by James Stanley, Senior Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES