SUMMARY

  • Japan’s services PMI came in at 52.5, in the zone of economic expansion, but the indicator was lower than the previous month’s 53.1.
  • USDJPY managed to regain the 150 zone, closing yesterday +0.19%. Currently, the currency is up +0.09% at 150.40.
  • Sixth positive close for the EURUSD. Yesterday it closed up +0.13%. It is currently up +0.07% at 1.0825.

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4,006
  • Example: USD$10 change in gold price = USD1000 potential PL.
  • Support 1: 2036,61
  • Support 2: 2035,53
  • Resistance 1: 2038,51
  • Resistance 2: 2039,33

Fundamental Analysis

  • The Japanese services PMI came in at 52.5, in the zone of economic expansion, but the indicator was down from 53.1 in the previous month.
  • The French services PMI is expected to come in at 45.7. The manufacturing sector is expected to come in at 43.5. For Germany, 48 and 46.1 are expected respectively. In the Eurozone, 48.5 and 47. In the United Kingdom, 54.2 and 52.9.
  • In the euro zone, we will also know the CPI, which is expected at 2.8% year-on-year.
  • In the US, 218,000 jobless claims are expected. The manufacturing PMI is expected at 50.5 and the services PMI at 52.4. Both in the expansion zone. Both in the expansion zone.
  • The day will end with statements from FOMC and Fed members.
  • Gold prices have been in positive territory for 6 days. Yesterday it closed up +0.07%. It is currently correcting -0.05% and is trading at USD 2.026 per troy ounce. The price is above its 40-day moving average. The long-term target is USD 2,040.

USDJPY

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$667
  • Example: movement of 100 pips = $1,000 potential PL.
  • Support 1: 150,35
  • Support 2: 150,28
  • Resistance 1: 150,44
  • Resistance 2: 150,48

Fundamental Analysis

  • The USDJPY managed to regain the 150 zone, closing yesterday with a gain of 0.19%. The currency is currently up +0.09% at 150.40.
  • Analysts believe that the currency could end the week above 151, driven by the current uptrend. The only obstacle would be the intervention of the Japanese authorities in the currency market.
  • The Japanese Cabinet Office has reported a downward revision of the country’s economic growth outlook. According to the government, the country’s economic recovery is stalling, so the Bank of Japan has decided to maintain its current monetary policy strategy.
  • USDJPY is at a pivot point, looking to break above the triple top in the 150.42 area. The currency is above its 40-day moving average. Possible weekly close at 151.50.

EURUSD

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$1,071
  • Example: movement of 100 pips = $1,000 potential PL.
  • Support 1: 1.0821
  • Support 2: 1.0816
  • Resistance 1: 1.0829
  • Resistance 2: 1.0832

Fundamental Analysis

  • The EURUSD closed the day higher for the sixth time. Yesterday it closed up +0.13%. It is currently up +0.07% at 1.0825.
  • According to the CME’s FedWatch, the probability that the Fed will cut interest rates at the May 2024 meeting is 30%. For the June meeting, however, the probability is 53%.
  • According to the FOMC minutes, the Fed is waiting for inflation to reach 2% before initiating the interest rate cutting program. For its part, the European Central Bank plans to cut interest rates starting in June or July 2024.
  • The EURUSD wants to attack the 1.0840 area. If it manages to break above this zone, the next target level will be 1.0897. The price is above the 40-day moving average, confirming the uptrend and increasing buying volume.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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