Daily Market Trends and Movements

Market Overview

Last week, a significant issue impacted the global economy, causing many businesses to revert to manual operations or suspend their activities—the global tech outage. This outage resulted in over a thousand flight cancellations in the U.S., supermarkets in Australia being shut down due to checkout system failures, security checks for the Paris Olympics being conducted manually, and many other disruptions.

The root cause was a security update sent by Crowdstrike, which caused Windows systems to crash, leading to the infamous blue screen of death. Crowdstrike assured that this was not a cyberattack but a bug that only affected Windows. Their other clients, using Linux and Mac, did not experience the issue.

This incident negatively influenced the stock market, pulling the DOW down by -0.93%, the S&P 500 by -0.71%, and the NASDAQ by -0.81%.

What did the businesses see？ How connected we are. While this is an advantage, it is also a double-edged sword as one error in their systems may cause an outage and a halt to most peoples lives. This can also cause large businesses to go bankrupt or lose billions in the process.

Now that we have seen this, what may possibly happen is a welcoming of other OS for backup and a search for alternative solutions to ensure that a crash does not mean a complete stop, but a switch. We may see some interesting developments from here on out.

GOLD -Gold has found weakness after yesterday‘s trading, reaching prices below 2401.779. There is now a possibility for the price to reach 2365.443. A deeper discount is better for the price. We continue to wait to see how the price will run from where it’s at.

SILVER - Silver is held up by 29.018. Smaller timeframes confirm a bearish run, and we may continue to see the price move in this direction. We continue to wait and see how the price will continue from here.

DXY - The dollar is currently running sideways and is not showing any sufficient information about a sure direction. Currently, it is showing a possibility for another run down soon as price movement can be a technical correction before a continuation down.

GBPUSD - The pound has consolidated after yesterdays trading session. We continue to wait for the price to show that this is the end of the correction. However, we might see the price fall further into 1.28508 and bounce from here before continuing upward. However, we must be ready to react as this may happen with data release.

AUDUSD -Due to Aussie dollar weakness, we can see the price move below 0.66541, and this weakness may push the price down to 0.66145. We wait and see how the price will run from here. It is possible that it may be time to expect a bearish AUD, but we continue to wait and see this confirmed with more price action—especially, after data release.

NZDUSD - The Kiwi is found trading on 0.59796. We continue to wait and see how the price will go, but market weakness is evident with the current price action. We expect the price to run toward 0.59400, with possibilities of a reversal or bounce off the current level.

EURUSD - The Euro remains consolidated and stagnant, waiting for further price movement. We expect the price to continue upward after the data release. Consolidation may reach deeper toward 1.08543.

USDJPY - The Yen won after yesterdays trading, showing yen strength coming into the market. We may also expect the price to run further down after data release. We are waiting for further confirmation. Currently, the price is between 157.193.

USDCHF - The CHF is currently at 0.88886 and may continue to trade sideways in the meantime. We expect CHF strength to come into the markets soon, but we need to remain prudent in price action before the data release.

USDCAD -The CAD has now reached 1.37745. We continue to expect the price to run upward due to CAD weakness. However, it is very possible for the price to show a technical correction soon. With that said, we continue to trade with prudence and watch prices with a bullish market expectation.

COT Reports Analysis

CAD - WEAK (5/5)

CHF - WEAK (5/5)

GBP - STRONG (5/5)

JPY - STRONG (2/5)

EUR - STRONG (5/5)

AUD - STRONG (5/5)

USD - STRONG (4/5)

SILVER - STRONG (3/5)

GOLD - STRONG (5/5)