REPORT 23^rd OF MARCH 2018

The commercial war between Washington and Beijing is still going on: this, essentially, is the news that has held high the operators’ attention for the whole week. In fact, after the already announced custom duties on steel and aluminum (not completely assimilated by the markets) Trump continues undaunted with his commercial politics leaving amazed both old and new partners: other custom duties on 1300 products with Chinese manufacture are coming, for a value of imported commodities equal to approx. 60 million dollars. Nevertheless, China doesn’t remain impassible but it has already threatened retaliations. If the clash continues without any step backwards by the United States, Beijing it’s ready to tax hundreds of American products for a value of around 3 million dollars. To be mostly hit by the Chinese custom duties are the American farmers of pig meat who, up to few days ago, they have always been able to rely on the great Chinese request. Obviously, many people don't like the commercial war instigated from Washington and the first contrary voices have already raised.

For what is concerning Europe , it would seem that, for the moment, it has escaped: custom duties aren’t included. Nevertheless, the apprehension for the new American commercial strategy it is palpable and the tension, especially within some sectors, it went up to sky-high.

The markets have reacted very bad, already struck by the Facebook affair- Cambridge Analytics that practically during the week has dragged downwards the whole sector of the IT. In addition to all this, there is to add the FED hawk, with the first rise of the rates of the Powell era. The number one of the American central institute wanted to show the strength from immediately and he has confirmed the wish to raise again the rates twice during the ongoing year and other 3 times for what it concerns the 2019.

In this climate of tension to have the best have been the goods shelter for excellence, the precious metals, and in particular the gold that on Friday it brings itself above the 1350 $ /oz. Bad situation the dollar, despite an aggressive FED. The green ticket, penalized more and more by the more and more isolationist Trump’s politics, has been in fact sold against the main currencies (Euro, Japanese Yen and Swiss Franc on all). As already said, a week to forgive for all the stock market, above all the American one and the Asian stocks exchanges. Less struck the European ones , although they have not had a particularly bright week.

GOLD (XAUUSD)

During the week the geopolitical tensions between Russia and UK became more weak (apparently) for leaving the space to the commercial tensions between the United States and China. As already mentioned above , this tensions have pushed the operators to adopt a defensive attitude and, despite the rise of the FED’s rates, the gold and not the dollar it is the asset that goes out as a winner. Although is premature to shout to the rally, undoubtedly the strength that the yellow metal is showing cannot pass unnoticed. Only the breakthrough on the up side of the recent maximum in area 1360 - 1370 $ (with big ammounts of purchase) could trigger a real rally. The trend is on the side and bullish. However, we have to remember that the last occasions in which the FED has lifted the rates of interest, those have matched with a minimum of the yellow metal.

Weekly graph XAUUSD (main supports and resistance)

Also on the weekly graph the outlook is neutral, but more slightly directed to rise compared to the last week. The metal still remains above the mobile averages at 100 and 200 days and it continues to oscillate in the channel towards the top started in January 2017. Nevertheless, will need to wait for the breakthrough of the1350 $ /oz, hoping in a more satisfying rally.

Weekly graph XAUUSD (main supports and rersitance)

SILVER (XAGUSD)

After the false breakup of the inferior side of the bullish triangle, during the week the silver, dragged by the gold, it goes back inside the illustration. Even though, the averages at 100 and 200 days continues to prove some strong resistances that stop any bullish hint. The quotations are trying hard to go out of the small range that has characterized the course of the price during the last months. The outlook goes on being negative.

Weekly graph XAGUSD (main supports and resistance)

PLATINUM (XPTUSD)

Also for the platinum the average at 100 days reveals to be an insurmountable obstacle. The moment for the metal is very delicate: as already said, the average at 100 days that serves as a resistance, while below we can find the trend line towards the top already tested several times to the fall. As long as the price keeps staying below the 950 $/oz the outlook it is neutral and bearish.

An improvement of the frame for the long term seems to be with the bullish breakthrough first in the area of the 975 $ /oz and later at the maximum ones in area of 1000 dollars.

Weekly graph XPTUSD (main supports and resistance)

PALLADIUM (XPDUSD)

A flat week for the palladium , undecided whether to make a will downwards the average at 100 days or the average at 200 days towards the top. The frame for the short term is neutral, but it stays positive in the one for the long term. Also for this metal, largely used in the industrial field, the attitude held by the operators is of waiting: the fears that the custom duties are going to be extended even to palladium and platinum are founded.

Palladium weekly graph ( main support and resistance)

EURODOLLAR (EURUSD)

The exchange rate even for the next week stays channeled in the box at 1,20. 1,25. The outlook- despite the rises announced by the FED - it is neutral. The coin, on one side becomes more powerful as a good shelter, on the other side it struggles to take off exactly because of the above-mentioned rises programmed by the American central institute. The exchange rate still travels abundantly above the mobile averages to 100 and 200 days. Upward the obstacle to be overcome remains the 1,25, while downward we can still find the same supports: 1,22 - 1,20 -1,18 and finally 1,16.

Weekly graph EURUSD ( main support and resistance)

BRIEFLY…

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