SUMMARY

  • Eurozone manufacturing PMI came in at 46.1, above market expectations, but the sector remains in contraction.
  • The price of gold continues to rise. Yesterday, the metal closed with a gain of +1.91%. It is currently up 1.03% at USD 2,305 per troy ounce.
  • The Nasdaq 100 corrected -0.95% yesterday on continued selling volume after several weeks at record levels. The index currently corrects -0.15% and trades at 18,301 points.

 

  • KEY EVENTS:
  • Eurozone CPI
  • Eurozone unemployment rate
  • US ADP Non-Farm Payrolls Variation
  • US services PMI
  • U.S. Non-Manufacturing PMI
  • EIA Crude Oil Inventories
  • Powell Statement

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0773
  • Support 2: 1,0771
  • Resistance 1: 1,0776
  • Resistance 2: 1,0777

Fundamental Analysis

  • The Eurozone manufacturing PMI came in at 46.1 points, above market expectations, but the sector remains in contraction. The German consumer price index came in at 2.2%, in line with forecasts.
  • Germany is very close to its 2% inflation target. As a result, the Bundesbank may start to influence the ECB to accelerate its rate cut program.
  • Investors are watching the Eurozone CPI, which is expected to come in at 2.5% y/y. The previous report was 2.6%. Traders are also watching the euro zone unemployment rate, which is expected to rise to 6.4%.
  • Another important data is the US ADP employment report, which is expected to add 148,000 new jobs.
  • EURUSD rose +0.23% yesterday, managing to break out of its support zone. It is currently up +0.09% at 1.0777.

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2302,01
  • Support 2: 2300,43
  • Resistance 1: 2304,96
  • Resistance 2: 2306,33

Fundamental Analysis

  • The price of gold continues to rise. Yesterday, the metal closed with a gain of +1.91%. It is currently up 1.03% at USD 2,305 per troy ounce.
  • Long positions in gold continue to increase as a result of the global stock market correction. The Dow Jones fell by 1%, the S&P500 by 0.72% and the Nasdaq 100 by 0.95%.
  • Traders sought refuge from the fall in equities. Analysts expect further corrections, as we have reached multi-month highs and the market is starting to tire.
  • The strongest earthquake in 25 years struck Taiwan. As a consequence, Asian stock markets also show downward movements.
  • Gold remains above the 40-day moving average and is now looking to break above the upper Bollinger band to hold and move up to the $2,300 area.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$183
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.290
  • Support 2: 18.285
  • Resistance 1: 18.303
  • Resistance 2: 18.311

Fundamental Analysis

  • The Nasdaq 100 suffered a -0.95% correction yesterday, due to continued heavy selling after several weeks at record levels. Currently, the index is correcting -0.15% and trades at 18,301 points.
  • The ADP change in US nonfarm payrolls is expected to be +148,000 new jobs. If the forecast is exceeded, the equity market could recover from yesterday’s correction.
  • Traders will also be watching the US services PMI, which is expected to come in at 51.7. The ISM non-manufacturing PMI is expected at 52.8. Both are in the expansion zone.
  • Today we will have statements from FOMC delegates and Fed Chairman Powell.
  • The index is below the 40-day moving average and remains in the pivot point zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

Risk Disclaimer

Any information/article/material/content provided in this document is intended to be used for educational purposes only and does not constitute investment advice or consultation on how the client should trade.

While the authors have ensured that the content of such information is accurate, they are not responsible for any omissions/errors/miscalculations and cannot guarantee the accuracy of any material or any information contained therein.

Therefore, any reliance you place on such material is strictly at your own risk. Please note that the responsibility for using or relying on such material rests with the customer and the company accepts no liability for any loss or damage including, without limitation, any loss of profit which may arise directly or indirectly from the use of or reliance on such information.