SUMMARY

  • Traders start the week with an eye on Christine Lagarde’s press conference as President of the European Central Bank.
  • The Nasdaq 100 started the week in the red at 18,563 points. Traders are looking ahead to this week’s US GDP report and the performance of the US housing market.
  • Traders are watching the minutes of the Bank of Japan’s monetary policy meeting. For the first time in the last ten years, the Bank of Japan raised interest rates into positive territory.

 

Main events:

    • Press conference by ECB President Lagarde.
    • New Home Sales Report (February) U.S.
    • Bundesbank statement

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2163,49
  • Support 2: 2161,82
  • Resistance 1: 2166,64
  • Resistance 2: 2168,12

Fundamental Analysis

  • Traders will start the week with an eye on Christine Lagarde’s press conference as president of the European Central Bank. Gold is correcting -0.83% and is trading at 2166 USD per troy ounce.
  • In the US, we have the report on new home sales, which is expected to increase by 675K. If it confirms or exceeds expectations, demand in the country will increase, which is good for the economy.
  • In Europe, we will also have the Bundesbank statements, which are important because it is one of the most important banks in the old continent.
  • Throughout the week, we will have some interesting data on inflation, as well as the US GDP report, which is essential to assess the progress of the economy.
  • Gold is in the pivot point zone. If there is a change in trend, the price will try to move up to the resistance of 2,210 USD.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$183
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.554,91
  • Support 2: 18.546,08
  • Resistance 1: 18.573,41
  • Resistance 2: 18.583,08

Fundamental Analysis

  • The Nasdaq 100 started the week in the red at 18,563 points. Traders are keeping an eye on this week’s US GDP report and developments in the US housing market.
  • During Jerome Powell’s presentation last week, the Fed chairman said the bank was willing to support the US labor market to prop up the mortgage market.
  • Goldman Sachs’ hedge fund clients are more interested in cryptocurrency options. The halving of bitcoin is approaching, and with it a further rise in prices. Many of the companies that make up the Nasdaq 100 have investments in cryptocurrencies, so the correlation between tech companies and cryptocurrencies is high.
  • The Nasdaq 100 is level with the 40-day moving average, which means it is moving sideways above 18,563 points. Bulls are looking for a weekly close above 18,800 points.

USDJPY

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 151,39
  • Support 2: 151,36
  • Resistance 1: 151,48
  • Resistance 2: 151,52

Fundamental Analysis

  • Traders are awaiting the minutes of the Bank of Japan’s monetary policy meeting. For the first time in ten years, the BoJ raised interest rates into positive territory.
  • The BoJ’s decision pushed the USDJPY to its current level. The currency had been under downward pressure for two weeks. Traders are now returning to the 152 level as a weekly target.
  • In Asia, Singapore’s inflation report is expected to come in at 3.3%. This is an important figure as it is one of the most important countries on the continent.
  • USDJPY is at the same level as its 40-day moving average. Bulls want to break above the 151.75 resistance to gain ground towards 152.
  • If the US PCE index is better than expected, there could be a rebound in the currency.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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