SUMMARY

  • Tensions continue to rise, with the Russian government accusing Ukraine of being behind the Moscow attacks.
  • The Nasdaq 100 index closed yesterday with a correction of -0.42%. At present, the index is recovering some of its fall, rising 0.31% to trade at 18,507 points.
  • The USD/JPY pair remains sideways around the 151.63 zone. The currency is likely to begin a correction, with buyers uninterested in a possible market intervention by the Bank of Japan.

 

Main events:

    • Spanish CPI
    • Spanish retail sales
    • EIA crude oil inventories
    • Fed statement
    • Australian retail sales

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2175,19
  • Support 2: 2172,57
  • Resistance 1: 2181,02
  • Resistance 2: 2184,23

Fundamental Analysis

  • Tensions continue to rise, with the Russian government accusing Ukraine of being behind the Moscow attacks. The price of gold closed yesterday up +0.30%. At present, the price is up +0.06% and trading at USD$2179 per Troy ounce.
  • Wall Street closed yesterday in negative territory. Market uncertainty and excessive US debt levels generated short positions.
  • Spain’s GDP met expectations, reaching 2% year-on-year. Today’s CPI report is expected to be 2% y-o-y.
  • Traders eagerly await statements from FED delegates, who will discuss the rate cut scenario from the June 2024 meeting.
  • Gold prices are looking to break above the 40-day moving average line, which is key to returning to resistance.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$183
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18.493
  • Support 2: 18.488
  • Resistance 1: 18.501
  • Resistance 2: 18.506

Fundamental Analysis

  • The Nasdaq 100 index closed yesterday with a correction of -0.42%. At present, the index is recovering some of its fall, rising 0.31% and trading at 18,507 points.
  • One of the world’s top investment fund managers, Larry Fink, warned the market of a snowball effect due to excessive debt in the US.
  • The fastest-growing Nasdaq 100 companies over the past session were Marvell +3.24% and Tesla +2.92%. The worst-performing companies were Moderna -2.69% and Nvidia -2.57%, due to profit-taking by traders.
  • Leading US businessmen met Xi Jinping, due to rising tensions between the two countries.
  • The Nasdaq 100 began to rebound from the lower Bollinger Band. The share price is on the verge of breaking above the daily moving average line.

USDJPY

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 151,58
  • Support 2: 151,45
  • Resistance 1: 151,89
  • Resistance 2: 152,07

Fundamental Analysis

  • USD/JPY remains sideways around the 151.63 level. The currency is likely to enter a correction, with buyers uninterested in any market intervention by the Bank of Japan.
  • Traders continue to await signals from the Fed on interest rate cuts. Analysts believe that the BoJ will raise interest rates again at its October 2024 meeting.
  • The CME FEdWatch indicator shows a 70% probability that the Fed will raise rates in June 2024.
  • If global inflation continues to fall, USDJPY is likely to reach and exceed 153.
  • USDJPY is above its 40-day moving average. The price recovered a few points after reaching the resistance level of 151.82.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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