Crypto Market Changes The Trend
Happy Tuesday, dear traders! Here’s what we follow:
Risk-on is back on the market
Information is not investment advice
The market sentiment has switched to risk-on, driving upwards stocks and riskier currencies and weighing on the US dollar.
Fundamentals
- US officials have almost reached a deal over fiscal stimulus. The sum is expected to be 2 trillion dollars. It encouraged investors and pushed riskier assets higher, offsetting the negative effect of yesterday’s intense US debates.
- All the US economic data came out better than analysts expected: the final GDP for the second quarter, pending home sales, and Chicago PMI. Besides, ADP beat estimates as well, which gave a hint for better-than-expected NFP this Friday.
- Chinese Manufacturing PMI turned out 51.5, which was almost as a planned number of 51.3. Since China is the world’s second-largest economy, the optimistic data improved the overall sentiment.
- ECB’s President Christine Lagarde claimed that the Fed’s inflation approach is worth examining in the EU. If the central bank imposes it, lower rates will drive the euro downward. However, it hasn’t done it still, and for now, EUR/USD is rising amid the risk-on mood.
- All eyes on US ISM Manufacturing PMI and unemployment claims today as those reports in combination with ADP will help to predict what to expect from Friday’s NFP.
Watch our daily trading plan!
Technical tips
EUR/USD
The most traded pair is trying to break through the strong resistance of 1.1750, which it has failed to cross a few times so far. The move above this level will drive the pair upwards to the 100-period moving average at 1.1770. On the flip side, if it falls below yesterday’s low of 1.1710, the way to the next support of 1.1675 will be open. Follow unemployment claims and US Manufacturing PMI as they will be two main drivers of the price movement today.
S&P 500
As mentioned above, stocks have been pushed up by the overall risk-on sentiment. S&P 500 has broken through the 50-day moving average of 3 350, therefore the way to 3 425 is open now. If the price crosses it too, it may jump to 3 480 then. Support levels are 3 330 and 3 290.
Gold
XAU/USD is staying just below the significant resistance of $1 900. If it eventually passes it, the high of September 22 of $1 920 will be open. In the opposite scenario, the move below the support of $1 880 will drive the yellow metal to September’s low of $1 850.
AUD/USD
The aussie is edging higher, driven by the improved sentiment. The move above the 50-day moving average of 0.7200 will drive AUD/USD upwards to 0.7335. Otherwise, the move below the significant support of 0.7100 will push the price to the key psychological mark of 0.7000.
Follow news:
- US unemployment claims will be out at 15:30 MT time.
- Follow ISM Manufacturing PMI at 17:00 MT time. The better-than-expected reading will drive the USD upwards, the worse-than-expected – downwards. Stay tuned!
Similar
The US Labor Market And Real Estate Market Are In Focus This Week
Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.
The US national GDP is in focus next week
What's going on with the US GDP? Economists think that the first quarter will be pessimistic. Let's check.
Popular
Will the CPI Crash the USD?
The most impactful releases of this week will fill the market with volatility and sharp movements.
Crypto Market Changes The Trend
Happy Tuesday, dear traders! Here’s what we follow:
The US Labor Market And Real Estate Market Are In Focus This Week
Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.
Choose your payment system
