SUMMARY

  • Analysts are eagerly awaiting the auction of three-year Treasury bills, which are expected to yield around 4.50%. The Bank of New Zealand will make its interest rate decision today.
  • Mergers and acquisitions in the energy sector continue to increase worldwide. Shell is considering delisting its shares from the London Stock Exchange and placing them on the New York Stock Exchange to increase the liquidity of its shares.
  • At yesterday’s close, the EURUSD was up +0.26%. For the moment, it remains sideways above the 1.0857 area. Long traders have a major resistance to overcome at 1.08729.

 

Main events:

  • EIA energy projections.
  • 3-year Treasury bill auction
  • API weekly crude oil inventories
  • Reserve Bank of New Zealand interest rate decision

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2342,68
  • Support 2: 2341,29
  • Resistance 1: 2346,04
  • Resistance 2: 2348,01

Fundamental Analysis

  • Analysts are eagerly awaiting the auction of three-year Treasury bills, which are expected to yield around 4.50%. The Bank of New Zealand will make its interest rate decision today.
  • German industrial production increased by 2.1%, well above market expectations (+0.6%). This indicates that demand for German products is increasing, which is positive for both the country and the European Union.
  • One of the Fed’s policymakers, Bullard, announced that the Fed’s baseline scenario envisaged three rate cuts between now and 2024. The market took this as a positive signal. As a result, inflation results are crucial.
  • Gold remains in an uptrend. The price is above its 40-day moving average. However, it is inside the upper Bollinger band, so traders can start taking profits.

WTI

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$852
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 86,47
  • Support 2: 86,39
  • Resistance 1: 86,69
  • Resistance 2: 86,83

Fundamental Analysis

  • Mergers and acquisitions in the energy sector continue to increase worldwide. Shell is considering delisting its shares from the London Stock Exchange and placing them on the New York Stock Exchange to increase the liquidity of its securities.
  • Nigeria is trying to stimulate its economy by financing $1 billion worth of investments, a loan secured by oil.
  • Exxon increases the industrial capacity of its British refinery to begin supplying diesel.
  • WTI remains above its 40-day moving average. Weekly target for the. Moving averages indicate trend continuation.

EURUSD

Specifications

  • Leverage: 100
  • Units: 1,000
  • Margin requirement: USD$852
  • Example: movement of USD$1 = $1,000 potential PL.
  • Support 1: 1,0855
  • Support 2: 1,0853
  • Resistance 1: 1,0859
  • Resistance 2: 1,0861

Fundamental Analysis

  • At yesterday’s close, the EURUSD was up +0.26%. At the moment, it remains sideways above the 1.0857 area. Long-term traders have a major resistance to overcome at 1.08729.
  • Analysts believe that the Fed and ECB will implement the monetary easing program before the June 2024 meeting. According to the Chicago Mercantile Exchange’s FedWatch, the probability of the Fed cutting rates at the June 2024 meeting stands at 51%, down from 62% last week.
  • The main catalyst for the week is the US inflation report, which will determine the next market trend.
  • EURUSD is above its 40-day moving average, poised for a continuation towards resistance at 1.0880. The moving averages are pointing to buy, while the RSI is in neutral territory.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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