SUMMARY

  • Traders are watching the U.S. manufacturing PMI, which is expected to come in at 52.8, which is in the economic expansion zone.
  • If the NFP comes in below 205,000, gold could gain +3.14% in one day as investors seek safe havens.
  • Traders are watching trading volumes after the Easter vacation. Wall Street is currently on the rise. The Nasdaq 100 is up +0.60% and trades at 18,364 points.

Main events:

  • US manufacturing PMI.
  • US ISM manufacturing PMI
  • Japanese 10-year debt auction

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0786
  • Support 2: 1,0783
  • Resistance 1: 1,0791
  • Resistance 2: 1,0793

Fundamental Analysis

  • Traders are watching the U.S. manufacturing PMI, which is expected to come in at 52.8, which is in the economic expansion zone. The ISM manufacturing PMI is expected at 48.5. EURUSD started the week moving sideways around the 1.0790 area.
  • Investors are keeping an eye on developments in the US labor market this week. They will also be looking forward to Jerome Powell’s statement as Fed Chairman.
  • US inflation is again approaching its annual target of 2%. As a result, the likelihood increases that the Fed will start cutting spending in June 2024.
  • EURUSD is at the same level as its 40-day moving average. The price has managed to break the 1.0800 support. The trading range is forming between 1.0798 and 1.0779. The moving averages indicate a massive sell-off.

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2211,64
  • Support 2: 2184,87
  • Resistance 1: 2261,04
  • Resistance 2: 2283,67

Fundamental Analysis

  • If NFP breaks below 205,000, gold’s potential one-day gain is +3.14% as investors seek safe havens. In other words, gold could rise $2,296 from its current level.
  • US quarterly GDP increased by 3.4%.
  • The underlying indicator for personal consumption expenditures came in at 2.8%, in line with market expectations.
  • The Fed has noted a good performance of PCE, which is closely watched because of its similarity to inflation. This would bring inflation closer to the 2% annual target.
  • Traders are keeping an eye on manufacturing and services PMIs from the US and Europe.
  • In Germany, the inflation report is expected to come in at 2.3% year-on-year. Analysts expect the ECB to start cutting interest rates this afternoon.
  • Meanwhile, the gold price is trading at USD 2,233 per troy ounce. Buyers are starting to position themselves at USD 2,500.
  • Traders are keeping an eye on trading volumes in the market after the Easter vacation.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$183
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.461
  • Support 2: 18.449
  • Resistance 1: 18.497
  • Resistance 2: 18.521

Fundamental Analysis

  • Traders are watching trading volumes after the Easter vacation. Wall Street is currently bullish. The Nasdaq 100 is up 0.60% at 18,364 points.
  • The US manufacturing PMI is expected to be in the expansion zone, reflecting the strength of the economy.
  • Meanwhile, Japanese regulators defend Nippon’s acquisition of US Steel, arguing that it will strengthen the industry against China.
  • The US economy continues to grow, but analysts are focused on the presidential election.
  • Nasdaq 100 returns from the upper Bollinger band. Possible move toward the 40-day moving average line.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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