SUMMARY

  • Eurozone CPI beat analysts’ forecasts. It came in at 2.4%, compared to 2.5% forecast and 2.6% in the previous report.
  • The gold price continues to climb above the $2,300 barrier. This time it is up +0.20% to USD 2,319 per troy ounce.
  • ADP Non-Farm Employment Change came in at 184K, above the 148K expected by the market. This contributed to Wall Street’s positive close yesterday.

Main events:

  • Spain Employment Change.
  • Services PMI in France, Spain, Italy, Germany and the Eurozone.
  • UK services PMI
  • New jobless claims in the U.S.

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1,0839
  • Support 2: 1,0835
  • Resistance 1: 1,0846
  • Resistance 2: 1,0849

Fundamental Analysis

  • Eurozone CPI beat analysts’ forecasts. It came in at 2.4%, compared to 2.5% forecast and 2.6% in the previous report. This result is excellent news for the markets. It increases the likelihood that the ECB will start lowering rates in June 2024.
  • The Eurozone unemployment rate came in at 6.5%, unchanged from the previous report.
  • Following the good inflation figures in Europe, the EURUSD continues its uptrend. Yesterday it closed up +0.62%. It is currently up 0.06% at 1.0842.
  • Traders are awaiting the European PMIs and the ECB monetary policy minutes.
  • The currency is above its 40-day moving average, and is looking to move up towards 1.0872 resistance.

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2317,15
  • Support 2: 2315,15
  • Resistance 1: 2321,45
  • Resistance 2: 2323,75

Fundamental Analysis

  • The gold price continues to break through the 2,300 USD barrier. This time, it is up +0.20% to USD 2,319 per troy ounce.
  • Wall Street closed higher yesterday, although long trading volume is starting to fall. In statements by Jerome Powell, as chairman of the Fed, he said that he needed to see hard data on inflation in the US before deciding to cut interest rates. In other words, until inflation falls below 2%, he will not begin the rate cutting program.
  • Janeth Yellen stated that the United States has sufficient tools to protect its industry against China, confirming the increase in trade tensions between the two countries.
  • The gold price continues to move above the 40-day moving average. The next target for the long side of the market is USD 2,400.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$183
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.439
  • Support 2: 18.434
  • Resistance 1: 18.450
  • Resistance 2: 18.456

Fundamental Analysis

  • ADP Non-Farm Employment Change came in at 184,000, above the 148,000 expected by the market. This contributed to Wall Street’s positive close yesterday.
  • US Services PMI came in at 51.7, in line with expectations.
  • New jobless claims are expected to come in at 213,000. Traders are also awaiting statements from FOMC delegates.
  • Traders are also starting to take positions ahead of the corporate earnings season. Analysts know that technology stocks could be punished.
  • The index is above the 40-day moving average and is looking to stay above the upper Bollinger band, which would allow it to move up towards the resistance zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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