SUMMARY

  • The Spanish CPI came in at 3.6%, confirming a rise of three basis points. Eurozone industrial production fell by 0.1% month-on-month.
  • USD/JPY recovered from yesterday’s forced correction after the Bank of Japan’s intervention in the currency market. Yesterday, the currency was up +0.21%. It is currently up +0.63% at 157.96.
  • 4th positive day for the Nasdaq 100. Yesterday, it closed up +0.54%. It is currently up +0.18% and stands at 19,637 points. Long-term traders are starting to target 20,000 points.

 

Main events:

  • CPI in France
  • Eurozone trade balance
  • Canadian wholesale sales
  • Fed monetary policy report
  • Statement by ECB President Lagarde

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$539
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1.0740
  • Support 2: 1.0738
  • Resistance 1: 1.0744
  • Resistance 2: 1.0746

Fundamental Analysis

  • The Spanish CPI came in at 3.6%, confirming a rise of three basis points. Euro zone industrial production fell by 0.1% month-on-month. US jobless claims came in at 242,000, above the 225,000 expected. Yesterday, the EURUSD corrected -0.69%. It is currently up +0.07% at 1.0743.
  • Traders are looking ahead to the ECB’s weekly closing statement. The markets are also following the evolution of the G7 dossiers.
  • In the US, we will get the 5-year inflation forecasts from the University of Michigan. We will also receive the Fed’s monetary policy report, which could hint at interest rate cuts.
  • EURUSD has corrected near the 1.0720 support, which has been difficult to overcome. The RSI is at 36.13, near the oversold zone, so a change in trend is possible.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 157.20
  • Support 2: 157.06
  • Resistance 1: 157.41
  • Resistance 2: 157.48

Fundamental Analysis

  • The USD/JPY recovered from yesterday’s forced correction after the Bank of Japan’s intervention in the currency market. Yesterday, the currency was up +0.21%. It is currently up +0.63% at 157.96.
  • The Bank of Japan has decided to maintain interest rates at 0.10% per annum. The country’s industrial production fell -0.1% on a monthly basis. The market does not see any major changes in the Bank of Japan’s monetary policy strategy. Among the measures adopted by the bank to stimulate the economy is the reduction of bond purchases. As a result, analysts believe that the bank could raise interest rates between now and the July 2024 meeting.
  • The currency continues to rise, this time reaching a new high of 157.96. The price remains above its 200-day moving average. The RSI is at 74.99, in an overbought zone, which could lead to profit taking. The moving averages indicate buying.

NASDAQ 100

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$93
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 19627.00
  • Support 2: 19619.25
  • Resistance 1: 19639.75
  • Resistance 2: 19644.75

Fundamental Analysis

  • The Nasdaq 100 closed yesterday’s fourth trading day up 0.54%. It is currently up 0.18% and stands at 19,637 points. Long-term traders are starting to target 20,000 points.
  • Finally, Elon Musk’s remuneration plan has been approved by Tesla shareholders. The entrepreneur will be paid 56 billion US dollars. This is a good sign for entrepreneurs whose shares are listed on the New York Stock Exchange.
  • The main upward movements were Broadcom +12.24%, Nvidia +3.52% and Tesla +2.97%. Among the decliners, Warner Bros -6.65%, MongoDB -4.83% and Atlassian -4.18%.
  • The index continues to approach 20,000 points. The price remains above its 200-day moving average. The price remains in a resistance zone. The RSI is at 67, near the overbought zone.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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