Daily Commentary
 | 14/08/2018

World financial markets drop over Turkey’s currency crisis

Equity Indexes, and shares all over the world dropped as concerns over the Turkish Lira melting deepened further. The DJIA, the S&P 500 and the European banking Index were all down on Monday’s trading session displaying further uncertainty. Most significant was German Foreign Minister Heiko Maas statement that Ankara could improve its relationship with both the United States and Germany which would improve its economic troubles. The Turkish lira’s dive sent the Euro to a new 13-month low.

At the same time metal prices plunged on Monday as gold fell to a 17-month low, pressured by rising geopolitical uncertainty and a stronger greenback. Gold weakened further since Friday breaking the psychological threshold of 1,200 but stabilized somewhat during today’s European morning. If the selling interest persists then the precious metal may break the 1192.31 (S1) support barrier and aim lower for the (S2) 1186.47 support hurdle. On the other hand, if the shiny metal is undertaken by a bullish sentiment we could see gold aiming for the 1201.64 (R1) resistance level and even break it aiming for the 1208.35 (R2) resistance barrier. However, Gold has been on a downfall for months now and golds ability as a safe-haven has been turned down due to increases in U.S. interest rates which boost the dollar, reducing gold demand.

Iran vows to keep regional policies unchanged

According to Iranian Foreign Minister, Iran will proceed normally its operations in the Middle East despite America’s interference. At the same time Iran’s Supreme Leader rejected U.S. President Trump’s offer of unconditional talks to overcome obstacles and banned any talks with the US. However he made it clear that there will be no war with the US. The latest comments were made due to a sharp fall in the Iranian Rial currency that has prompted angry protests in Iran.

Crude Oil prices dropped during Monday after various sources indicated supply increased during the past week. However, later on the same day the commodities price corrected and made up for the previous decline. Technically, the RSI indicator in the 1 hour chart remains along the reading of 50, implying a rather indecisive market. If the commodity continues to be overtaken by a bullish sentiment we could see it move higher and break the 67.75 (R1) resistance level. On the other hand, Should traders favor Crude oil short positions, we could see the commodity moving lower to the 66.79 (S1) support level and aim for the 66.03 (S2) support barrier. For in depth information and updates on the Oil market please follow are weekly outlook to be released later on today.

XAU/USD

• Support: 1192.31 (S1), 1186.47 (S2), 1180.00 (S3)

• Resistance: 1201.64 (R1), 1208.35 (R2), 1214.93 (R3)

Crude Oil

• Support: 66.79 (S1), 66.03 (S2), 65.04 (S3)

• Resistance: 67.75 (R1), 68.73 (R2), 69.61 (R3)