SUMMARY

  • The Eurozone services PMI index came in at 51.5, above market expectations. The UK services PMI index came in at 53.1, below the 53.4 expected.
  • Traders started to take profits from the level of 2,303 USD. Yesterday, gold closed down -0.42%. Currently, the metal is correcting -0.59% and trades at USD 2,277 per troy ounce.
  • The Nasdaq 100 index suffered a major correction during yesterday’s session. Long-term traders took profits after the index touched highs.

 

KEY EVENTS:

  • Average hourly gain in the U.S.
  • US NFP
  • U.S. unemployment rate
  • Canadian unemployment rate

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

  • The Eurozone services PMI came in at 51.5, above market expectations. The UK services PMI came in at 53.1, below the 53.4 expected. The minutes of the ECB monetary policy meeting indicated that the bank could, with a high probability (+61%), start cutting rates in June 2024.
  • EURUSD has managed to regain the 1.0800 area, closing yesterday’s session up 0.62%. It is currently correcting a few points (-0.09%) and is trading at 1.0825.
  • Analysts believe that the currency could maintain its uptrend in the short term. The expected trading range is between 1.0870 and 1.0880.
  • The EUR/USD is near the lower Bollinger band, confirming the uptrend. The price would try to bounce above the 40-day moving average line. For the moment, it remains in a resistance zone, awaiting the NFP results in the United States.

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2297,63
  • Support 2: 2295,63
  • Resistance 1: 2301,89
  • Resistance 2: 2304,15

Fundamental Analysis

  • Traders started to take profits at 2.303 USD. Yesterday, gold closed down -0.42%. At the moment, the metal is correcting -0.59% and is trading at USD 2,277 per troy ounce.
  • Wall Street stock indexes fell significantly during yesterday’s session. The Dow Jones lost 530 points, or 1.35%. The S&P 500 was down 1.23% and the Nasdaq 100 was down 1.40%.
  • If NFP are better than expected today, stock markets could recover the corrections registered throughout the week. NFP is expected to come in at 212K. The previous report was 275K. The country’s unemployment rate is expected to be 3.9%.
  • The gold price is in the lower Bollinger band, which could generate strong buying interest. Long-term interest is to regain the 2,300 USD area.

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

  • Nasdaq 100 index, which suffered a major correction during yesterday’s session. Long-term traders took profits after the index reached new highs. Currently, the index is up +0.18% and trades at 18,109 points.
  • Depending on the NFP results, the index could recover some points or extend the correction to the next support level.
  • The markets are also awaiting the first report on the investigation into the Baltimore Bridge incident. Global geopolitical tensions are rising.
  • US Treasury Secretary Yellen is in China with her delegation to examine the Asian country’s industrial capacity.
  • The index hovers just above the lower Bollinger band. The price remains below the 40-day moving average.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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