SUMMARY

  • Gold continues to gain levels ahead of FOMC executive statements.
  • Germany’s LFO business confidence index came in at 89.3, slightly below market expectations (90.4).
  • Traders are awaiting the Conference Board’s U.S. economic report, which indicates the level of buyer confidence in economic activity.

 

Main events:

  • Japanese benchmark index
  • FOMC statements
  • The Conference Board in the United States

GOLD

Specifications

  • Leverage: 100
  • Units: 100
  • Margin requirement: USD$2167
  • Example: movement of USD$10 = $1,000 potential PL.
  • Support 1: 2352.08
  • Support 2: 2349.88
  • Resistance 1: 2356.14
  • Resistance 2: 2358.00

Fundamental Analysis

  • Gold continues to gain price levels as we await statements from FOMC executives. Gold rose +0.58% yesterday. It is currently up +0.10% and is trading at USD 2,353 per troy ounce.
  • French President Macron has encouraged Europeans to buy European goods and services. This move is intended to counter the trade war between the United States and China.
  • Tensions in the Middle East continue to rise, increasing long positions in gold to dampen market volatility.
  • China has invested $47.5 billion in its microchip industry to counter U.S. tech giants.
  • Gold remains sideways at the $2,360 resistance. The price is below its 200-day moving average.

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$542
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1.0871
  • Support 2: 1.0868
  • Resistance 1: 1.0877
  • Resistance 2: 1.0880

Fundamental Analysis

  • The LFO business confidence index in Germany came in at 89.3, slightly below market expectations (90.4). The closer the indicator gets to 100, the better. EURUSD is currently up +0.18% at 1.0877.
  • Today the Eurogroup meeting continues, with one of the main topics on the agenda, tensions in the Middle East.
  • Today we will have statements from Bundesbank delegates. The main topic is the evolution of inflation in the eurozone and the possible lowering of interest rates for the June 2024 meeting. The European Central Bank is not worried about the labor market.
  • EURUSD is above its 200-day moving average and is looking to break above resistance at 1.0877. If it succeeds, the next target will be the upper Bollinger band at 1.0900.
  • The moving averages and RSI indicate buying.

DOW JONES

Specifications

  • Leverage: 200
  • Units: 1
  • Margin requirement: USD$195
  • Example: movement of 100 points= $1,000 potential PL.
  • Support 1: 39179.66
  • Support 2: 39173.33
  • Resistance 1: 39190.66
  • Resistance 2: 39195.33

Fundamental Analysis

  • Traders are closely following the Conference Board’s U.S. economic report, which indicates the level of buyer confidence in economic activity. It is expected to come in at 96.1 points. The Dow Jones is currently up 0.08% at 39,187 points.
  • Traders continue to take positions awaiting the US inflation report. The Fed is closely monitoring the results. Analysts rule out that the bank will cut interest rates this year.
  • Stock trades on Wall Street are expected to start being booked and settled on T+1, indicating faster trading than ever before.
  • The Dow Jones bounces off the lower Bollinger band and manages to hold above support at 39,186 points. Price is below the 200-day moving average. The RSI is neutral, while the moving averages indicate buying.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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