SUMMARY

  • Yesterday’s session saw a significant correction in the price of gold. The price fell by 2.14%.
  • The Nasdaq 100 suffered a sharp correction yesterday due to investors’ concerns about the financial results of technology companies.
  • Good recovery attempt by the USDJPY, which closed yesterday with a gain of +0.94%. Currently, the currency is up +0.05% at 157.88.

 

KEY EVENTS:

  • ADP Non-Farm Employment Change
  • U.S. Manufacturing PMI
  • JOLT Job Search
  • EIA Crude Oil Inventories
  • Fed interest rate decision

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2286.3
  • Support 2: 2284.53
  • Resistance 1: 2289.68
  • Resistance 2: 2291.29

Fundamental Analysis

  • Yesterday’s session saw a significant correction in the gold price. The price fell by 2.14% as traders continued to focus on corporate earnings and geopolitical tensions began to ease. Currently, gold is up 0.07% at $2,287 per troy ounce.
  • Wall Street also ended yesterday’s trading day with significant declines. The Dow Jones lost 570 points. The Nasdaq 100 fell by 2.04%.
  • The euro zone CPI came in at 2.7% year-on-year. It rose one basis point, but remains close to the 2% inflation target.
  • ADP nonfarm payrolls are expected to increase to 179,000.
  • The market expects the Fed to hold interest rates at 5.50%.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$177
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 17501.25
  • Support 2: 17491.5
  • Resistance 1: 17519.75
  • Resistance 2: 17528.5

Fundamental Analysis

  • The Nasdaq 100 suffered a sharp correction yesterday due to investors’ concerns about the financial results of technology companies. The index suffered a correction of 2.14% yesterday. At the moment, the fall continues. This time, it is down -0.34% and the index is trading at 17,511 points.
  • Traders are expecting high volatility today as a result of yesterday’s fall in world stock markets. Analysts believe that it is possible that the Fed will not cut interest rates this year, which will lead to greater volatility and a decline in stock markets.
  • The highest expectations relate to the Fed and the FOMC statement. Yesterday, the market anticipated the announcement of the postponement of the interest rate cut.
  • The index is in a support zone, just below the 200-day moving average line.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 157,73
  • Support 2: 157,68
  • Resistance 1: 157,84
  • Resistance 2: 157,90

Fundamental Analysis

  • Good recovery attempt for the USDJPY, which closed yesterday with a gain of +0.94%. Currently, the currency is up +0.05% at 157.88.
  • Traders know that if the currency reaches the 160 level again, the Bank of Japan will intervene in the market. However, the long position remains and traders are looking to generate volume to reach 161.
  • Main support remains at 154, with price still above the 200-day moving average, confirming higher volume from buyers than sellers. The price is close to the upper Bollinger band, which could pull the rally back a few points. The Bank of Japan does not want to raise interest rates, as it essentially wants to continue to stimulate investment in the country. However, speculative moves on the yen are increasing, which could lead to a major correction of the currency.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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