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FTSE 100, DAX and Dow head higher in early trade FTSE, DAX, and Dow surge higher in early trade, with the wider uptrend kicking in once again. Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 02 August 2021 FTSE 100 turning higher once again after Friday retracement The FTSE 100 has been on the rise in early trade today, with the index continuing its uptrend as expected. The pullback on Friday saw price fall back into the 61.8% Fibonacci support level, with the uptrend subsequently kicking in today. With that in mind, a bullish outlook continues to hold unless we see price fall back below the 6995 level. Near-term resistance of note comes in the form of the descending trendline and the 7171 mark. Source: ProRealTime DAX breaks higher from consolidation phase The DAX has also kicked off the week with a bang, as an upward move in early trade brings us through the 15661 level to end the recent consolidation phase. That points towards a continuation of the recovery following the mid-June decline into a wider 76.4% Fibonacci support level of 15051. With that in mind, the break seen this morning points towards further upside to come, with a move back below 15437 needed to detract from this bullish outlook. Source: ProRealTime Dow Jones breaks back towards the record highs The Dow has gapped up towards the prior high of 35175 this morning, with the index looking to form a fresh high after a retracement into the 76.4% Fibonacci level. A break back below the 34761 level negates the bullish view, with a positive outlook holding until then. Source: ProRealTime

BP’s share price has retraced more than 14% from its one-year high since June. Can its upcoming results boost its share price? Yeap Jun Rong | Market Strategist, Singapore | Publication date: Monday 02 August 2021 IG When does BP report earnings? British Petroleum (BP) is set to release its Q2 financial results on 3 August, along with the announcement for its dividend payout. BP earnings – What to expect For its previous quarter, BP has delivered a stronger-than-expected performance, enabling it to meet its US$35bn debt reduction target a year earlier than expected. This opens up the gateway for US$500 million in share buybacks this year, pointing to a vote of confidence from the management for the company’s outlook ahead. As BP halved its dividend last year to deal with the Covid-19 impact on oil demand, investors may be looking out for any positive surprise in terms of upward revision in payout. This comes off the back of continued improvement in financial performance, along with higher oil prices for the second quarter. Expectations are for revenue to come in at US$38.3 million for the upcoming quarter, a 20.8% increase year-on-year and a 10.8% increase from the previous quarter. Having previously laid out its intention to return 60% of surplus cash flow to shareholders, any improvement in cash flow for subsequent quarters may be closely watched. The company has generated about US$1.7 billion in surplus cash in the first quarter, with overall free cash flow largely improving after an initial plunge in Q1 2020. While near-term cash flow may potentially be capped by payment costs relating to the Gulf of Mexico oil spills, the longer-term trajectory seems to lean towards further improvement as global economic recovery continues and the impact from one-off costs wear off. Source: BP Recent results from one of its peers, Royal Dutch Shell, came with an earnings beat and the company revealed an increase in dividend, along with US$2 billion of share buybacks this year. Similarly, TotalEnergies SE also saw a profit surge and indicated that it will start repurchasing shares. Overall, this may provide an early indication for the upcoming BP’s results, which is highly likely to mirror its peers’ performance, riding along with the economic recovery tailwind for the overall sector. Valuation BP’s current forward price-to-earnings ratio stands at 7.91, seemingly trading at a cheaper valuation compared to other global oil giants at first glance. That said, this may come as its revenue growth over the past three years has been largely trailing behind its global peers. Based on Refinitiv estimates at the time of writing, the stock has 14 ‘buy’ recommendations, nine ‘holds’ and four ‘sells’. The stated target price of £358.18 suggests a potential 24.2% upside from current price. BP shares – technical analysis From its technicals, BP share price seems to be trading in a downtrend near-term, as marked by a series of lower highs and lower lows since the start of the month. This comes after share prices broke below an upward trendline previously, which has been serving as a line of support on previous three occasions, bringing a shift in sentiments to the downside. A slight rebound, based on the oversold region in the RSI, find prices re-testing a key horizontal support level at £290. Should the level fail to hold, prices may potentially move lower to test the next support level at £250, which has held prices up on previous two occasions. For near-term resistance, a downward trendline connecting recent lower price highs will be one to overcome. Source: IG Charts

When is the Reserve Bank of Australia (RBA) meeting next? The RBA will meet on Tuesday, 3rd August at 2.30pm. Forex Australia Central bank Economy of Australia AUD/USD Recession Kyle Rodda | Market Analyst, Australia | Publication date: Monday 02 August 2021. IG The economic data that matters Source: Bloomberg What is the market expecting from this RBA meeting? A month is a long time in monetary policy when in a pandemic. After July’s apparent hawkish policy pivot, whereby the RBA started to outline a path to policy “normalisation”, the recent outbreaks of the Delta variant of the Covid-19 virus in Australia, and subsequent lockdowns, especially in New South Wales, has set the stage for a policy backflip from the RBA. With the Australian looking at a quarter of negative growth as a result of lockdowns, and possibly a double-dip recession, the RBA is likely to announce a reversal of tapering plans, and possibly increased stimulus, to support the economy through its imminent slowdown. Three questions for this RBA meeting What will the RBA do with its QE program? After announcing a reduction in its quantitative easing (QE) program last month, which would have seen bond purchases reduced from $5 billion to $4 billion per week, the RBA is all but certain to reverse the decision, in order to maintain liquidity during the expected slow down in the Australian economy. Not only that, but several high profile forecasters, chiefly Westpac’s economics team, have suggested the RBA ought to increase its bond buying to $6 billion per week. Though it’s a matter of debate how impactful such a move will be, it’s likely at the very least RBA will want to be seen to be “doing something” in response to the latest crisis, in order to sure up public and market confidence. What’s the expected economic impact of the latest lockdowns across Australia? Given the expected backflip on policy from the RBA, the markets will be looking to the central bank to provide updated economic guidance, that will quantify the expected impact of the latest lockdowns on future growth. Although fresh forecasts from the private sector haven’t been fully updated, the most up to date estimates for GDP growth for the Australian economy for the next quarter have already been downgraded to 0.4% from 0.9%, while estimates for the unemployment rate has been revised up to 5.1% from the current 4.9%, according to data compiled by Bloomberg. Want to trade with IG? Create an IG trading account or log in to your existing account to get started now. Could the RBA extend its YCC target bond? Perhaps the nuance of greatest contention at this meeting is whether the RBA will also reverse its decision not to extend its target bond for its yield curve control program. At its July meeting, the central bank opted not to shift the target to the November 2024 bond, from the April 2024 bond, choosing instead to provide itself policy flexibility given the potential of a cash rate increase in that year. With the Australian economy possibly moving towards another recession, and the market erasing expectations of a rate hike at the end of 2022 in recent weeks, the RBA may wish to anchor expectations by targeting a 0.1% for the November 2024 bond. How could the RBA meeting impact the AUD/USD? The fortunes of the AUD/USD probably hinge on what the RBA does with its QE program. The market has probably already priced-in a backflip on the central bank’s tapering program. However, it’s unlikely that the market has discounted an increase in the QE program, at least entirely. From a technical standpoint, the AUD/USD looks in a very vulnerable position in the short-term. The pair’s post-pandemic uptrend has broken down, largely due to concerns about a top in the global economic cycle and a resurgent US Dollar. The key levels to watch in the short-term are, on the upside, is resistance at 0.7420, where the pair’s 20-day MA also currently sits, while on the downside, 0.7290/0.7300 proved the most recent low and will be a noteworthy level of support. You can trade with IG by creating a trading account or log into your existing account to get started.

Hi @GetMad, glad you enjoyed the blog. You can read a more in depth blog on emotions Hope you will find this helpful as well. All the best - MongiIG

The Week Ahead Read about upcoming market-moving events and plan your trading week. Week commencing 2 August Joshua Mahony’s insight Another busy week ahead, with both economic and corporate earnings playing a significant role in driving volatility as we move through the week. Central banks will once again be in focus as the RBA and BoE release their latest rate decisions, while the week ends with the latest US jobs report. On the corporate front, earnings data from the likes of HSBC, BP, Fresnillo, and Taylor Wimpey bring updates across a wide spectrum of the economy. In the US, keep an eye out for data from Uber, Virgin Galactic, and Moderna. Week ahead video. Economic reports Weekly view Monday 2.45am – China Caixin mfg PMI (July): index to fall to 51.1. Markets to watch: China indices, CNH crosses 6am – Japan consumer confidence (July): June reading 37.4. Markets to watch: JPY crosses 3pm – US ISM mfg PMI (July): index to fall to 60.5. Markets to watch: USD crosses Tuesday 5.30am – RBA rate decision: no change in rates expected. Markets to watch: AUD crosses Wednesday 2.45am – China Caixin services PMI (July): index to rise to 50.4. Markets to watch: CNH crosses 1.15pm – US ADP employment report (July): 692,000 jobs created in the previous reading. Markets to watch: USD crosses 3pm – US ISM non-mfg PMI (July): index to rise to 30.2. Markets to watch: USD crosses 3.30pm – US EIA crude oil inventories (w/e 30 July): previous inventories figure came in at -4.1 million. Markets to watch: Crude and CAD crosses. Thursday 9.30am – UK construction PMI (July): expected to fall to 62.5. Markets to watch: GBP crosses 12pm – BoE rate decision: no change in policy expected. Markets to watch: GBP crosses 1.30pm – US trade balance (June), initial and continuing jobless claims (w/e 31 July): trade deficit to narrow to $63 billion, initial claims expected to fall to 370k from 400k. Continuing claims forecast to fall to 3150k from 3269k. Markets to watch: US indices, USD crosses Friday 1.30pm – US non-farm payrolls (June): payrolls expected to rise to 926K from 850K, while the unemployment rate falls to 5.7% from 5.9%. Markets to watch: US indices, USD crosses 1.30pm – Canada employment report (July): 20,000 jobs expected to have been lost. Markets to watch: CAD crosses 3pm – Canada Ivey PMI (July): index to fall to 70 from 71.9. Markets to watch: CAD crosses Company announcements Monday 2 August Tuesday 3 August Wednesday 4 August Thursday 5 August Friday 6 August Full-year earnings Superdry, Frasers Half/ Quarterly earnings HSBC Travis Perkins, BP, Standard Chartered, Fresnillo, Greggs, Beyond Meat, ConocoPhillips, BMW, Stellantis Legal & General, Taylor Wimpey, Commerzbank, Uber, General Motors WPP, Rolls-Royce, Glencore, Savills, Moderna, Dropbox, AIG, Virgin Galactic LSE Group, Hikma, Allianz Trading update Dividends FTSE 100: Unilever, Reckitt Benckiser FTSE 250: Avon, CMC Markets, Tyman, Games Workshop, FDM Group, Man, Tritax, GCP Infrastructure Investments Dividends are applied after the close of the previous day’s session for each market. So, for example, the FTSE 100 goes ex-dividend on a Thursday, but the adjustment is applied at the close of the previous day, e.g. Wednesday. The table below shows the days in which the adjustment is applied, not the ex-dividend days. Index adjustments Monday 2 August Tuesday 3 August Wednesday 4 August Thursday 5 August Friday 6 August Monday 9 August FTSE 100 8.10 Australia 200 0.10 1.26 0.14 Wall Street 2.3 1.4 10.8 US 500 0.05 0.31 0.57 0.32 Nasdaq 1.55 2.55 0.39 Netherlands 25 0.10 1.26 0.14 EU Stocks 50 China H-Shares Singapore Blue Chip 0.64 0.36 Hong Kong HS50 South Africa 40 Italy 40 Japan 225

With Q2 earnings season in full swing, Microsoft, Barclays, and Rio Tinto provide us with potential trading opportunities. This article looks at some of the big movers off the back of recent earnings announcements to try and find stocks that seem to provide a good trading opportunity. Typically, earnings announcements and trading statements will drive a shift or enhancement of market sentiment. While many see earnings as a significant risk when holding a stock, placing trades in the wake of such events allows for greater confidence that all market knowledge has been factored into current prices. Microsoft Microsoft shares have been easing back once again, with the stock losing traction towards the end of a week that has brought significant volatility. However, with the tech giant beating revenue forecasts and providing an optimistic outlook, there is a strong chance this current pullback will provide us with a fresh buying opportunity. With the ascending standard deviation channel and deeper Fibonacci levels coming into play, any further downside would simply provide a better opportunity to get in on this bull run. That bullish outlook remains in play unless price breaks below the $275.24 swing-low. Source: ProRealTime Barclays Barclays saw an incredible rise in profitability this week, with the investment banking division driving a dramatic rise in earnings for the bank. That outperformance brought a rise into the key £1.78 swing-high, raising the likelihood of a bullish reversal after the recent decline into trendline support. The inability to break through that £1.78 level means we are yet to see such a bullish breakout signal. However, with the bank looking upward, there is a good chance we will see price rise from here. Certainly a break up through that resistance level would provide greater confidence that this recent pullback is over, with risk of a deeper retracement remaining until that move takes place. That being said, whether we see that deeper pullback come into play or not, a bullish view holds unless price drops below £1.29. Source: ProRealTime Rio Tinto Rio Tinto benefitted from a big surge in iron ore prices, with the company posting a record first-half performance as a result. The stock broke below trendline support back in June, but that period of weakness brought price back into the 76.4% Fibonacci support level. We have been on the rise since then, with price continuing to create higher lows. With that in mind, the uptrend does remain intact unless price drops back below the $57.09 swing-low. Source: ProRealTime Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 30 July 2021. IG

Hi @Guest ugt, what timeframes are you using when you apply the 14MA and 8MA ? Your feedback will be greatly appreciated. Thanks MongiIG

The dollar edged higher in early European trading Friday, but looks set to register a negative week after a dovish Federal Reserve meeting and some disappointing growth data. At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 91.998, having earlier fallen as low as 91.855 on Thursday, a one-month low. The index is currently around 1% lower on the week, its worst weekly showing since early May, and down around 0.6% for the month. USD/JPY rose 0.1% to 109.61, GBP/USD fell 0.1% to 1.3944, just off its highest level in a month, EUR/USD fell 0.1% to 1.1877, while the risk-sensitive AUD/USD fell 0.2% to 0.7379. The U.S. central bank stated earlier this week that progress had been made towards the levels where the policymakers would agree to tapering monthly bond purchases. However, Chairman Jerome Powell made it clear that rate increases were still a long way away and more economic progress was needed before the central bank starts withdrawing its extraordinary monetary stimulus. “Although the FOMC made more hints at the upcoming QE tapering, the impact on the risk sentiment was limited and non-negative as the message remained cautious, and QE tapering later this year has been widely expected by the markets,” said analysts at ING, in a note. The U.S. GDP release grew 6.5% annualised in the second quarter, a solid level and an improvement from the 6.3% growth recorded in the first quarter, but this was still below the 8.5% growth expected. Investors will be keeping an eye on the second-quarter employment cost index, personal income and spending for June and the July University of Michigan consumer sentiment index later in the day for more clues over the country’s economic recovery. That said, the dollar could receive support if rising Covid cases in the U.S. prompt a bout of risk aversion. The New York Times reported Friday that the U.S. Centers for Disease Control and Prevention has described the delta variant of the coronavirus to be as contagious as chickenpox and could cause severe illness, citing an internal CDC document. By Peter Nurse, 30 July 2021. Investing.com

Dollar declines send EUR/USD and GBP/USD higher, as USD/CAD falls into support Dollar weakness continues, with EUR/USD and GBP/USD on the rise as USD/CAD falls into key support. Source: Bloomberg Forex United States dollar Market trend Pound sterling GBP/USD EUR/USD Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 30 July 2021 EUR/USD pushes through Fibonacci resistance to build on bullish break EUR/USD is building on the bullish breakout seen yesterday, with the price rising through the 61.8% Fibonacci level despite a brief pullback at that level. This push up through to a one-month high points towards further upside coming into play from here, with a drop back below the overnight lows of $1.1875 required to bring about a more neutral outlook. Until then, further upside looks likely as we push up towards the 76.4% Fibonacci level at $1.1923. Source: ProRealTime GBP/USD continues to build on bullish week GBP/USD continues to gain ground this morning, with the pair expected to continue its trend higher after seeing the price rise through the $1.391 resistance level. A break back below the $1.3843 level would bring a more bearish outlook into play. Until then, further gains look likely for GBP/USD. Source: ProRealTime USD/CAD falls back into key support after recent breakdown USD/CAD has slumped back into the crucial $1.2425 support level this morning, with the pair on the slide since dropping through 76.4% Fibonacci support. A break back below that $1.2425 support level would bring about a bearish reversal signal for the pair. As such, sentiment for the day ahead looks to be dictated by the reaction to this key support level Source: ProRealTime

Gold and Brent crude continue to gain ground as the dollar declines Gold and Brent crude continue to rise, with key resistance levels coming into play as we close out the week. Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 30 July 2021 Gold rallies into key resistance level Gold has taken advantage of the dollar decline, with the precious metal rising back into the key $1834 resistance level. The ability to break through that level will be key here, with a reversal or break providing a clue of where we go from here. Source: ProRealTime Brent crude looks likely to continue recovery trend Brent crude has been on the rise over the course of the week, with price pushing up through the 76.4% Fibonacci resistance level yesterday. That points towards a likely rise through the $76.30 swing-high before long, with a bullish outlook in place unless price falls back below the latest swing low of $73.12. Source: ProRealTime

FTSE 100, DAX and Dow head back into key support FTSE, DAX, and Dow head lower, but will this retracement represent a buying opportunity for stocks? Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 30 July 2021 FTSE 100 turns lower from Fibonacci resistance The FTSE 100 has been on the back foot in early trade, with the index falling back from the 76.4% Fibonacci resistance level of 7085. That decline may not necessarily mark the beginning of a wider bearish phase though, with a break below 6928 required to signal a more protracted downside move for the index. Until then, it is worthwhile watching to see another potential higher low, with the near-term Fibonacci levels of 6991 (61.8%) and 6967 (76.4%) bringing key levels that could spark another upside move. Source: ProRealTime DAX declines provide warning sign for the FTSE The DAX has similarly sold off from the 76.4% Fibonacci resistance level of 15630, with the index falling towards the key 15420 level. A drop below that level would bring a potential bearish picture into play for the day ahead, highlighting the possibility of a more protracted move lower in Europe. As such, watch out for whether price breaks the 15420 level as a gauge of sentiment for the day ahead, with such a break bringing about a bearish double top formation. Source: ProRealTime Dow Jones falls back towards key support The Dow has similarly been on the back foot this morning, with the index falling back towards the 34859 level respected over the course of past three days. With that in mind, watch out for price to potentially find support around the 34859 and 76.4% Fibonacci support zone for the bulls to potentially come back into play. A decline through 34761 would be required to bring a wider bearish picture into play. Source: ProRealTime

Amazon (NASDAQ:AMZN) reported Thursday softer third-quarter revenue guidance and mixed second-quarter results as earnings beat, but revenue fell short of expectations. Amazon.com announced earnings per share of $15.12 on revenue of $113.1 billion. Analysts polled by Investing.com anticipated EPS of $12.24 on revenue of $115.33 billion. Net sales in North America rose to $67.55 billion from $55.44 billion in the the prior-year period. Amazon Web Services, its fast-growing cloud revenue segment, grew revenue to $14.81 billion from $10.81 billion. Looking ahead to Q3, Amazon guided sales between $106 billion and $112 billion, representing growth of 10% to 16% compared to the same period last year, missing analysts estimates for third-quarter revenue of $119.02 billion. Operating income is expected to be between $2.5 billion and $6.0 billion, compared with $6.2 billion in third quarter 2020. By Yasin Ebrahim, 30 July 2021. Investing.com

In this series we will piece together the anatomy of a swing trade and discuss the tools along with the methodology used to construct a basic trade setup. While no one single strategy is perfect, these best practices can be utilized in conjunction with your own trading strategy to identify more favorable entry / exit points in trending market environments. Trendlines are the simplest and single most important (and largely underutilized) tool in your trading arsenal. Extending a line off key highs & lows in price is an objective way of assessing the gradient or slope of a trending market. This key step can help identify where the price is likely to find support (floor) or resistance (ceiling). DXY DAILY PRICE CHART Note that trendline analysis can be viewed as more of an art form than a science as it requires some form of subjectivity. That said, when drawing trendlines, the more touch points the market has, the stronger conviction the slope offers. This means that the reaction off the trendline (slope) becomes increasingly effective. In the example of the U.S. Dollar Index, the positive slope casts a bullish outlook, with the broad game plan to buy as price trends higher. So where should our entry point be? A pullback into trendline support would be the most favorable entry With the same respect, a break often offers sharper and more significant reversals. Once a trendline support is broken, the slope now becomes resistance for prices, and often foreshadows a change in market behavior. This slope can now be seen as a reference of invalidation for the current move lower. AUD/NZD DAILY PRICE CHART Likewise, a breach above a trendline resistance sees that line as support for the subsequent move higher. The AUD/NZD example above shows how a single trendline can offer plays on both sides of the spectrum as support & resistance. Once the slope broke in December, if offered clear resistance on the subsequent rally in early 2015 before moving lower. Likewise, the breach above in June fueled a rally higher, which inevitably found support back at that same trendline. KEY TAKEAWAYS ON TRENDLINE ANALYSIS Some important aspects to keep in mind when drawing trendlines: Two points is speculative, three points confirms- It’s important to note that any two reference points can offer a trendline- however it’s the third touch point that confirms the validity of the slope. Therefore before relying too heavily on a given gradient, look for that third touchpoint for conviction. Assessing the break- You should always be trading under the assumption the trendline will hold- but when trying to ascertain whether price is actually breaking, one of the most important things to consider is timeframe. As a rule of thumb, I’ll typically look for a daily close to confirm or invalidate the break of a given trendline. However, when utilizing shorter time-frames price action will be the biggest tell- look for a reaction / change in behavior at the break with a pullback & retest of the slope as support/resistance to validate the break. We will discuss multi-timeframe analysis in more detail in part 3 of this series. A break of a trendline should fuel acceleration- When a slope is broken as resistance or support, the subsequent move should see prices follow through in the direction of the break. If prices break and fail to accelerate in that direction, often times this will be a sign of a ‘false break’ scenario (also known as a ‘throw-over’). These exhaustion trades are typical in mature trends and can often precede key reversals in price. Don’t chase the break- The way you will want to trade the breach of a trendline is to wait for a pullback in price to test the slope as support – your stop will be below this low. Likewise, on a break of support, wait for the market to retest the trendline as resistance- That pivot high will be your stop on the short. This fundamental use of trendlines is constant across slope analysis and is the basis of the methodology. In part two we’ll introduce Pitchfork and medina-line analysis to help identify favorable targets (areas of support / resistance) within the context of a given trend. Find more trading tips and strategies in our free forex trading guides. Written by Michael Boutros, Currency Strategist with DailyFX. 30 July 2021.

Barclays have proven just why they should retain their investment banking arm, with a jump in profits pointing towards a likely bullish drive from here. Source: Bloomberg Shares Barclays Market sentiment Stock Investment Investment banking Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 29 July 2021 Barclays earnings provide bullish impetus Barclays has given its shareholders plenty to celebrate today, with the bank posting an impressive £5 billion profit for the first half (H1) of 2021. That ability to almost quadruple their profits for H1 provided a fresh bout of buybacks and dividends to reward investors banking on a pro-cyclical boost for the sector. Part of the boost came from the ability to claw back provisions that had been made in anticipation of bad debts, with Covid-19 sparking a wave of defaults. However, the government’s supportive measures managed to stave off much of those effects, with banks reclaiming those funds set aside in preparation of such losses. Meanwhile, the bank saw positive signs that consumer demand was starting to grow once again. Nonetheless, much of the profits seen at Barclays came thanks to their investment banking division, drawing a line between the bank and its UK peers. The US banks have historically outperformed UK banks thanks in part to their more volatile trading divisions. However, while shareholders had been pushing Barclays to shift away from their investment banking exposure, Jes Staley’s decision to fight off those moves have been justified today. Instead, we could now see investors specifically look towards Barclays as a potential outperformer thanks to that greater risk profile. Bullish breakout could bring long-term reversal The stock managed to break up through the £1.80 resistance level back in March, with the decline in treasury yields seeing the stock ease back since. However, we have seen price find support on the descending trendline, with price now stuck between two long-term lines. With the rally through £1.80 bringing an end to the long-term downtrend, there is a good chance that we are set for another leg higher from here. The fact that the stochastic is turning upwards after a period of downside highlights how momentum appears to be shifting in favour of the bulls. Source: ProRealTime The daily chart highlights the uptrend in place over the past 16 months, with todays rally taking price back into that £1.80 region. The declines seen over the course of the past three-months does still remain in play unless we see a rise through the July high of £1.78, yet the fact that the price appears to have topped out at that level does raise the likeliness that this recent pullback is over. Further upside through that level would provide greater confidence of such a bullish surge, although ultimately any further downside would simply be deemed a buying opportunity unless the price breaks the £1.29 low established in January. Find out more on how to buy, sell and short Barclays shares Source: ProRealTime

Hi @Marcraffard It is a good thing you did your research, it is one key tool for trading. With the research you have done, as a trader you will get a better understanding why the market is moving in a certain way, while at the same time you will be able to anticipate these moves when such announcements happen again in future. All the best - MongiIG

The dollar weakened in early European trading Thursday, falling to two-week lows after further indications that U.S. interest rate hikes are still a distant event following the conclusion of the latest Federal Reserve meeting. At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 92.157, just higher than the two-week low of 92.097 reached earlier Thursday. USD/JPY fell 0.1% to 109.78, GBP/USD rose 0.2% to 1.3931, climbing to a one-month high, EUR/USD rose 0.1% to 1.1856 ahead of German data on inflation and unemployment, while the risk-sensitive AUD/USD rose 0.1% to 0.7385. The U.S. central bank kept interest rates steady on Wednesday at the end of its latest two-day meeting, as widely expected, while suggesting that the U.S. economy was making progress towards the levels where the Fed members would agree to tapering monthly bond purchases. However, comments from Chairman Jerome Powell that rate increases were "a ways away" and that the job market still had "some ground to cover” before the central bank begins to taper its assets weighed on the dollar. His comments mean that investors will be keeping a close eye on the latest economic data. The weekly initial jobless claims, due at 8:30 AM ET (1230 GMT), are set to show a continued decline, while the second quarter GDP release at the same time is expected to show 8.5% annualized growth, a sharp increase from the 6.4% growth seen in the previous quarter. “We still find it likely that a tapering decision is taken in September with a formal slowdown of the purchases from December and onwards,” said analysts at Nordea, in a note. “We expect the Fed to be able to finalize tapering by the summer of 2022.” Elsewhere, USD/CNY edged 0.3% lower to 6.4731, with the yuan regaining a lot of the ground it lost due to the regulatory onslaught against technology companies that rattled local equity and bond markets. . Helping the tone Thursday were reports saying that China's securities regulator called a select group of foreign and Chinese banks and institutional investors late on Wednesday to try and soothe nerves. CNBC reported that China would continue to allow companies to list in the United States. By Peter Nurse, 29 July 2021. Investing.com

Gold and Brent crude head higher as dollar weakens Gold and Brent crude manage to push through resistance, as the dollar weakens in the wake of yesterday’s FOMC meeting. Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 29 July 2021 Gold drives higher from key support Gold has managed to push sharply higher from the $1790 support level overnight, with the Federal Open Committee Meeting (FOMC) bringing a decline for the US dollar. That helps to alleviate the pressure on gold for now, with price seemingly heading back into the recent uptrend seen throughout early July. Near-term resistance comes in the form of $1823, yet there is a risk that we post a retracement before long given the sharp moves seen overnight. In either case, the uptrend does remain intact, with a break back below $1790 required to negate that recent bullish pattern. Source: ProRealTime Brent crude pushing through resistance as it builds on recovery Brent crude has pushed up through the 76.4% Fibonacci resistance level of $74.12, helping to alleviate fears of a bearish reversal. The recent declines seen around the OPEC+ talks are behind us, and we look likely to continue the long-term uptrend from here. As such, while a move through $76.30 would be required to fully eradicate this recent selloff, it makes sense to favour bullish positions unless price falls through the prior swing-low (currently $73.12). Source: ProRealTime

Dollar weakness drives EUR/USD and GBP/USD gains, while USD/CAD breaks lower FOMC-fuelled dollar weakness sparks EUR/USD and GBP/USD gains, while USD/CAD breaks through Fibonacci support. Source: Bloomberg Forex United States dollar EUR/USD GBP/USD USD/CAD Canadian dollar Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 29 July 2021 EUR/USD drives higher after recent upside break EUR/USD has built on the rise through $1.1831, with the pair driving into a fresh two-week high. The gradual nature of the recent downtrend did point to such a move likely coming into play before long, and we are now looking for clues as to where this rise will push into. The wider Fibonacci retracement from $1.1975 is of particular interest, with $1.189 and $1.1922 representing the two notable deep Fib levels worth considering from the bears to come back into play once again. Until then, further short-term upside looks likely from here. Source: ProRealTime GBP/USD breaks key resistance to end recent bearish threat GBP/USD has managed to push up through the $1.391 resistance level overnight, with the pair negating the downtrend in play over the course of June and July. With a more bullish outlook now confirmed, it makes sense to simply follow the intraday trend of higher lows, with a bullish outlook in play until the price breaks back below $1.3843. Source: ProRealTime USD/CAD breaks Fibonacci support after recent consolidation USD/CAD has finally broken from its consolidation phase, with the pair falling into a two-week low this morning. Crucially, that brings us back below the 76.4% Fibonacci support level as we close in on the key swing low of $1.2425. A break back below that level would confirm the end of the uptrend that has dominated the past two months. As such, watch out for further downside from here, with a break below $1.2425 in particular providing greater confidence in that bearish outlook. Source: ProRealTime

FTSE 100, DAX and Dow consolidation expected to bring fresh push higher FTSE, DAX, and Dow consolidation likely to ultimately resolve in another push towards the upside. Source: Bloomberg Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 29 July 2021 FTSE 100 rallies back into Friday’s high The FTSE 100 has managed to push back into the recent high of 7041, with the index largely warding off selling pressure evident on Tuesday. The ongoing recovery phase points towards a potential move into the 7070 resistance level given the current break through 7041. From a wider perspective, we would want to see a rise above 7151 to entirely negate the declines seen in mid-July and confirm the uptrend once again. Source: ProRealTime DAX pausing after recent recovery move The DAX has been attempting to regain ground over the past 10-days, with price on the rise after a wider 76.4% Fibonacci retracement. While Tuesday saw a break back below 15542 support, the lack of follow-through highlights how we are likely to head higher before long. Watch for a push through the 15641 level to build a more bullish picture once again, with the index likely to grind lower until that upside break occurs. Source: ProRealTime Dow Jones likely to push into fresh highs before long The Dow has seen a brief move into the 76.4% Fibonacci support level at 34858 this week, with the downside moves proving somewhat limited in nature. A break back below 34761 would signal a potential wider retracement coming into play. Until then, another move higher looks likely from here as we build on the bullish trend. Source: ProRealTime

For more up to date news on how markets will open, the latest earnings and economic news, watch IGTV live in the platform at 07:30am UK. Today’s coverage: China’s Hang Seng tech index rebounds sharply on reports China is responding to investor concerns over regulatory outlook. UK earnings: Lloyds Q2 pretax profit tops estimates, announces acquisition of Embark Shell to resume share buybacks targeting $2bn by year-end BT Q1 earnings top estimates, AZN, Diageo also report US earnings: Facebook warns on growth outlook, shares lower, PayPal disappoints, Amazon ATB Europe earnings: VW raises FY outlook Credit Suisse Q2 net income falls short of estimates Fed last night, rates unchanged, considers tapering bond purchases , US quarterly GDP later today Brent crude closing in on $75 as EIA inventories fall short of estimates. https://community.ig.com/igtv/

The Federal Reserve kept interest rates, and acknowledge that while progress had been made toward its threshold to start tapering monthly bond purchases, more time was needed to assess the progress at upcoming meetings. The Federal Open Market Committee left its benchmark rate unchanged in the range of 0% to 0.25% and said it would continue its $120 billion monthly bond purchases. "Last December, the Committee indicated that it would continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage‑backed securities by at least $40 billion per month until substantial further progress has been made toward its maximum employment and price stability goals.," The Fed said in its statement. "Since then, the economy has made progress toward these goals, and the Committee will continue to assess progress in coming meetings." The Fed has faced calls from within its ranks to bring forward the timeline on tightening monetary policy in the wake of rising inflation. Despite admitting that the pace of inflation has surprised to the upside, Fed Chairman Jerome Powell has been reluctant to heed calls to tighten policy sooner rather than later. “While reaching the standard of ‘substantial further progress’ is still a ways off, participants expect that progress will continue,” Powell said earlier this month in testimony before the House Financial Services Committee. A recovery in the labor market appears to be at the heart of the Fed’s taper threshold. But Powell recently admitted the labor market "still has a long way to go." Sentiment on the recovery in the labor market and broader market, meanwhile, suffered a further blow with the resurgence in Covid-19 cases brought on by the delta variant and a slowing vaccination rates. “Until a couple of months ago, our GDP growth forecast had been distinguished for the prior year by being well above consensus expectations,” Goldman Sachs (NYSE:GS) said in a recent report to clients. “At this point, our forecast is instead distinguished from consensus expectations by the sharpness of the deceleration that we expect over the next year and a half.” Goldman Sachs now expects the U.S. economy to return to expansion of 1.5% to 2% in the second half of next year. Traders will shift attention to Powell's press conference at 2.30 PM ET (1830 GMT), for more clues on the roadmap to tapering bond purchases. But the Fed chief isn’t expected to provide any meaningful updates on the timeline. "We expect the Committee to debate the pace and flexibility, as well as the relationship of tapering with rate hikes. At the post-FOMC press conference, we expect Chair Powell to acknowledge the Committee's discussions, while stressing no decision has yet been made," Morgan Stanley (NYSE:MS) said in a recent note. By Yasin Ebrahim, 28 July 2021. Investing.com

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Pfizer (NYSE:PFE) stock came off earlier lows in premarket trading Wednesday and was down 0.4% as the company raised its annual guidance and pegged revenue from sale of its COVID-19 vaccines at approximately $33.5 billion. The revenue from COVID-19 vaccines reflects 2.1 billion doses expected to be delivered in 2021 under already-signed contracts as of middle of this month. It could supply up to 3 billion doses if expansion at current sites happens and new suppliers are added, Pfizer said. The vaccine contributed $7.83 billion in revenue during the second quarter. Expenses and profit from the vaccine are split equally between Pfizer and BioNTech (NASDAQ:BNTX). Pfizer raised its 2021 guidance for revenue to a range of $78 billion to $80 billion and adjusted diluted earnings per share to $3.95-$4.05. This only factors in the revenue from COVID vaccines already contracted. It had earlier guided for revenue to come between $78 billion and $80 billion. Second-quarter revenue at the pharmaceutical giant rose 92% from a year ago to $18.97 billion. COVID shots aside, Pfizer’s revenue was also boosted by growth in its pneumococcal vaccine Prevnar and oncology businesses as people attended to health issues they had been putting off in the pandemic. Excluding revenue from the COVID vaccine BNT162b2, revenue grew 10% operationally to $11.1 billion. Adjusted diluted earnings per share came at $1.07, beating the estimate of 96 cents. By Dhirendra Tripathi, 28 July 2021. Investing.com