SUMMARY

  • Wall Street closed mixed last week. The Dow Jones closed up +0.56%, while the S&P500 closed down -0.88% and the Nasdaq 100 closed down -2.05%.
  • Tesla is sending worrying signals to the market. The company has reportedly ended the Robotaxi project. It also recently announced that it was laying off 10% of its workforce.
  • The Japanese service sector PMI index is expected to come in at 54.1 points. Interestingly, the sector seems to continue to grow, which is positive for the Japanese economy.

 

Major events:

  • Eurogroup meeting
  • Canadian Commodity Price Index
  • Japanese services PMI

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2380.12
  • Support 2: 2377.94
  • Resistance 1: 2385.52
  • Resistance 2: 2388.74

Fundamental Analysis

  • Wall Street closed mixed last week. The Dow Jones closed with +0.56%, while the S&P500 closed with -0.88% and the Nasdaq 100 with -2.05%. The main declines corresponded to technology stocks.
  • Stock indexes started the week looking for a rebound to recover from the falls of the last few days. The price of gold is currently correcting -0.39% and is trading at USD 2382.20 per troy ounce.
  • The Eurogroup meeting will continue today. In recent days, European Commission President Ursula Von Der Leyen has insisted on the need for the European Union to strengthen its military capabilities.
  • Canada’s commodity price index is expected to increase by 2.9%, confirming the rise in inflation in the country.
  • Japan’s service sector PMI is expected to come in at 54.1, i.e. in the zone of economic expansion.

S&P500

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$49
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 4968.5
  • Support 2: 4963.5
  • Resistance 1: 4982.2
  • Resistance 2: 4990.9

Fundamental Analysis

  • Tesla is sending worrying signals to the market. The company has reportedly ended the Robotaxi project. It also recently announced that it was laying off 10% of its workforce. In addition, Mr. Musk has asked the Board of Directors to approve a large severance payment. All of this indicates that the company is having liquidity problems.
  • Wall Street analysts believe that the S&P500 should rise at any time, driven by strong financial results expected this season.
  • The US Congress approves a $95 billion aid package for Ukraine, Israel and Taiwan.
  • The trial against former President Trump continues in the United States.
  • The index is below the 40-day moving average, but near the lower Bollinger band, which may generate buying volume.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 154.6
  • Support 2: 154.55
  • Resistance 1: 154.72
  • Resistance 2: 154.79

Fundamental Analysis

  • The PMI index for the Japanese service sector is expected to come in at 54.1 points. Interestingly, the sector seems to continue to grow, which is positive for the Japanese economy.
  • Fears of intervention by the Bank of Japan on the yen persist. According to Rabobank analysts, the probability of BoJ intervention is high.
  • Meanwhile, the BoJ committee continues to discuss the rate hike.
  • At the moment, USD/JPY remains above the level of 154.62. The weekly target for the long market is 156.
  • Geopolitical tensions are putting upward pressure on USDJPY.
  • The currency is just above resistance at 154.62. Price is above the 40-day moving average. Bulls are looking to move higher towards the upper Bollinger band at 155.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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