SUMMARY

  • Eurozone manufacturing PMI came in at 46.1 versus 47 expected. Services PMI beat market expectations, coming in at 50 versus 48.8 expected.
  • Second consecutive positive close for the USDJPY. Yesterday, the currency closed +0.15% higher. For the time being, the price remains sideways above the 150.50 area.
  • After reaching 1.0887, the EURUSD retreated towards the 1.0802 support, to finally settle at the current level of 1.0823.

GOLD

Specifications

  • Leverage: 50
  • Units: 100
  • Margin requirement: USD$4,006
  • Example: USD$10 change in gold price = USD1000 potential PL.
  • Support 1: 2025,12
  • Support 2: 2023,32
  • Resistance 1: 2028,02
  • Resistance 2: 2029,12

Fundamental Analysis

  • Eurozone manufacturing PMI came in at 46.1 versus 47 expected. The services PMI beat market expectations, coming in at 50 versus 48.8 expected.
  • In the United Kingdom, the composite PMI came in at 53.3, versus 52.9 expected, and the services PMI came in at 54.3, versus 54.2 expected. Both results were better than expected and indicate that both economic sectors are in expansionary territory, which is favorable for economic growth.
  • The Eurozone CPI fell by one basis point to 2.8%, down from 2.9% previously. The result is favorable and shows that inflation continues to fall for the time being.
  • In the United States, the services PMI index came in at 51.3 versus expectations of 52.4. The sector continues to expand. The sector continues to expand. However, it is slowing down.
  • The gold price is below its 40-day moving average. The price fell after reaching 2,035 USD. Possible buying interest in the current area.

USDJPY

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$667
  • Example: movement of 100 pips = $1,000 potential PL.
  • Support 1: 150,46
  • Support 2: 150,41
  • Resistance 1: 150,53
  • Resistance 2: 150,55

Fundamental Analysis

  • Second consecutive positive close for the USDJPY. Yesterday, the currency closed +0.15% higher. At the moment, the price remains sideways above the 150.50 area.
  • Traders are eagerly awaiting the Fed’s monetary policy report, which is the catalyst to close the week at 151.
  • Long positions in USDJPY continue to increase as +2.3% growth in Japanese retail sales is expected.
  • USDJPY is above its 40-day moving average, which could spur a positive close for the week. The currency price remains in a buy zone. The short-term target is 151.
  • Today is a public holiday in Japan due to the Emperor’s birthday. For this reason, trading volume is not expected to be high.

EURUSD

Specifications

  • Leverage: 100
  • Units: 100,000
  • Margin requirement: USD$1,071
  • Example: movement of 100 pips = $1,000 potential PL.
  • Support 1: 1.0823
  • Support 2: 1.0821
  • Resistance 1: 1.0829
  • Resistance 2: 1.0833

Fundamental Analysis

  • After reaching the level of 1.0887, EURUSD pulled back towards the support level of 1.0802, to finally settle at the current level of 1.0823.
  • The Eurozone PMI results were mixed, so traders decided to take profits in EURUSD after a strong uptrend.
  • Traders eagerly await Germany’s GDP report, which is expected to come in at -0.2% y/y. The country has failed to emerge from the economic recession and, as the main driver of the Eurozone economy, this is a major blow to the continent.
  • The German manufacturing PMI came in at 42.3 points, against expectations of 46.1 points. This is the lowest level in four months.
  • EURUSD is below its 40-day moving average. The price is still in a resistance zone. The weekly target is to consolidate the price in the current zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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