Money Flows before the start of the new week

The week was really busy with the resumption of the indices and the weak dollar. Movements were again caused by the same factors as October October, namely the slowdown in the global economy, the Fed, Brexit, and the Commerce War. We had momentary tensions over oil and the OPEC meeting, which certainly gave its reflection, but it still has far more serious impacts in both the real economy and the markets. The traders are not entirely calm because, although the Dow Jones is over 200 of its period creeping, the S & P500 and NASDAQ have lagged behind. Index consolidation continues, and market participants are still not entirely calm or confident about action in a particular direction. There is no clear vision for adequate positioning, but the foundation will certainly be a driving factor for next week. The technology sector, if it continues to pull down indices at the helm of the NASDAQ, will exert enormous pressure on the bullish stubborn launch, and the fight will be great.

The opposite winds are strong and with worsening macroeconomic indicators, market factors and geopolitical negative changes, we can fall into the "eye of the storm". Thoughts that will hold traders and investors in the markets in the coming days. The reality of the tightening monetary policy seemed to have been forgotten for a few days but returned to the agenda again and reminded investors that raising interest rates was something they were stressing. The Fed confirmed its course, we are expecting the last interest rate cut in December.

Brexit and the lymph in which the negotiations lie, find a ray of light. The power of conviction, rhetoric and, of course, political will help those who are sincere in their actions. Or at least that's what Theresa May wants to show, and she made a successful move last week. But one thing is to be together with the House in this, but another is to persuade your northern neighbor and your Parliament that this is the right thing for the nation. Something that will continue to harass market participants next week. An event whose end we will see for sure, but will it be happy?

At the FX markets we witnessed the dethronement of the King - Dollar, at least for now. The currency against a basket of its main rivals is in a correction mode and it is a matter of time again the US dollar to show muscles. If the inertia is only exhausted, however, next week we can see the dollar coming up. If the Commerce War is coming to an end and we have information in the coming days to develop events to a positive end, we can expect new dollar upward movements. The yen enjoyed stable demand after falling into the radar of investors as a safe haven for loss of risk appetite for indices.

Gold. Eventually it woke up and made a significant increase, which is expected to continue in the coming days. The mood seems bullish to be kept for next week. The price managed to repulse from the bottom line of the upward channel, made a long turn with a long tail on a weekly chart and held over Fibonacci 23.6. As the first test option, the price can move to the 200-day moving and 38.2 Fibonacci. Loss of risk contributed to the glamorous, though difficult, performance of the precious metal over the past week. On a weekly schedule, the trend remains rising in the long run. DeMarker has turned below 0.3 and already crossed the line. Maybe there is an end to the adjustment inside the trend? It is still early to say. But mood swings to increased risk - an appetite that provokes a supportive fundamental or geopolitical catalyst will change the color of gold to red, and we will move away from bullish scenarios.

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