SUMMARY

  • US inflation resumed its downward trend, this time dropping one basis point from 3.5% to 3.4% y/y.
  • Following the US CPI results, the USDCHF corrected -0.63%. Currently, the currency is correcting -0.23% and trades at 0.9000.
  • After the favorable US CPI data, the Nasdaq 100 resumed its ascent. Yesterday it closed up +1.50%.

 

KEY EVENTS:

  • New U.S. jobless claims.
  • U.S. building permits
  • Philadelphia Fed manufacturing index

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2388.44
  • Support 2: 2385.21
  • Resistance 1: 2396.15
  • Resistance 2: 2400.63

Fundamental Analysis

  • Inflation in the United States resumed its downward trend, this time dropping one basis point, from 3.5% to 3.4% year-on-year. Stock markets reacted positively. Gold rose by 1.28% yesterday. It is currently up 0.20% at USD 2,390 per troy ounce.
  • Eurozone GDP increased by +0.4% y-o-y, which is positive compared to +0.1% in the previous report. Despite the problems associated with the war in Ukraine, the European economy has resumed its economic growth.
  • Japanese GDP, down -2% year-on-year, has led the Bank of Japan to rethink its monetary policy strategy.
  • The gold price is above the upper Bollinger band, a possible profit-taking signal for traders. The price has reached the weekly target of USD 2,390. Bulls are now targeting USD 2,410 per troy ounce.

USDCHF

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDCHF price = USD1,000 potential PL.
  • Support 1: 0.8992
  • Support 2: 0.8985
  • Resistance 1: 0.9004
  • Resistance 2: 0.9009

Fundamental Analysis

  • Following the US CPI results, the USDCHF corrected -0.63%. Currently, the currency has lost -0.23% to 0.9000.
  • Swiss financial market regulator FINMA is insisting that all Swiss banks must have thorough liquidity controls in order to avoid another Credit Suisse-like collapse.
  • The USDCHF price is below the lower Bollinger band, and also below the 200-day moving average. The price remains in a support zone, which offers an attractive buying point for long positions in the market. The moving averages and RSI indicate a massive sell-off.
  • The Swiss stock market index, the SMI, closed up +1.01% yesterday, following optimism generated by lower inflation in the United States. The index is currently up +1.02%.

NASDAQ 100

Specifications

  • Leverage: 100
  • Units: 1
  • Margin requirement: USD$181
  • Example: movement of 100 points = $1,000 potential PL.
  • Support 1: 18719.41
  • Support 2: 18709.83
  • Resistance 1: 18733.91
  • Resistance 2: 18738.83

Fundamental Analysis

  • Following the favorable CPI data in the United States, the Nasdaq 100 resumed its ascent. Yesterday, it closed up +1.50%. At the moment, the index is still rising, this time by +0.20%, and is trading at 18,730 points.
  • Putin has begun a diplomatic visit to China. The main objective is to obtain China’s support for the war in Ukraine.
  • Hedge funds are increasing their exposure to technology stocks. For example, AMD shares rose 4.25% after increased buying volume.
  • Tesla shares corrected 2.01% as minority investors voted on whether to approve Elon Musk’s $56 billion financial package. On the other hand, the company is touring Europe introducing the Cyber Truck.
  • The index is above the upper Bollinger band, indicating a possible profit-taking by traders.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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