SUMMARY

  • Traders are waiting for the statements of the European Central Bank’s leaders, who will discuss the results of the decision to cut interest rates. For the time being, the EURUSD is stable at around 1.0767.
  • Japan’s Nikkei 225 was up 1.29% yesterday on the back of a weaker yen. The USDJPY is currently up +0.13% at 157.22.
  • Apple unveils iOS 18, which includes AI apps such as ChatGPT.

 

Main events:

  • UK unemployment.
  • OPEC monthly report
  • ECB statement
  • Canadian building permits
  • US 10-year bond auction
  • API weekly crude inventories

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$539
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1.0763
  • Support 2: 1.0759
  • Resistance 1: 1.0771
  • Resistance 2: 1.0773

Fundamental Analysis

  • Traders are waiting for the statements of the European Central Bank’s leaders, who will discuss the results of the decision to cut interest rates. For the time being, the EURUSD is stable at around 1.0767.
  • In the US, we have the 10-year government bond auction, and yields are expected to rise to +4.483%. This is an interesting data, as we will be able to analyze investors’ interest in fixed income securities.
  • Investor positioning was evident after the victory of the right wing in the European parliamentary elections. EURUSD bounced from the 1.0740 support to its current level. The price is looking to move up towards the resistance zone at 1.0820. The RSI is at 49.06, which indicates neutrality, i.e. a continuation of the current trend. The volume of purchases is increasing.
  • The ECB’s stance is focused on strengthening the European market and encouraging investment flows into the continent.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 157,16
  • Support 2: 157,09
  • Resistance 1: 157,27
  • Resistance 2: 157,31

Fundamental Analysis

  • Japan’s Nikkei 225 was up 1.29% yesterday on the back of a weaker yen. USDJPY is currently up +0.13% to 157.22. The weekly target for the long side of the market is to consolidate at 158.
  • Whether USDJPY will reach its weekly target will depend on US inflation figures and the Fed’s stance.
  • The Bank of Japan is expected to reduce the volume of its bond purchases as the date for raising or maintaining interest rates approaches.
  • Longer-term traders are watching their positions as the BoJ could start intervening in the market at any time. The BoJ ceiling is set at 160.
  • USDJPY continues to rise and is approaching 157.50, which is a major resistance and difficult to overcome. The RSI is at 68.88, very close to the overbought zone, which would weaken the uptrend a bit.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 19083.84
  • Support 2: 19072.42
  • Resistance 1: 19101.59
  • Resistance 2: 19107.92

Fundamental Analysis

  • Apple introduced iOS 18, which includes AI applications, such as ChatGPT. On the other hand, Elon Musk said that if Apple includes OpenAI in its iPhones, his companies will have to check the devices of employees and visitors to their facilities for corporate security.
  • Analysts are keeping an eye on Apple, as the OpenAI deal makes it one of the most influential companies in the industry.
  • Top risers in yesterday’s session were Constellation Energy +8.40%, CrowdStrike +7.29% and Lam Research +4.19%. Top corrections were AMD -4.49%, Illumina -3.41% and Monster Beverage -3.21%.
  • The index is close to the resistance of 19,200 points, which is important to overcome in order to move back up towards 19,400 points. The RSI is at 54.78, in the neutral zone, so the price could lose a few points.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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