This Wednesday will be heaven for day traders. A considerable number of events will make the market volatile. Don't miss it!
Forex today: gold, AUD/USD, and USD/JPY
- Both China and the USA published encouraging numbers. China’s Caixin Services PMI beat all expectations. It rose to 54.3, while the forecast was 52.2. US ISM Services PMI jumped to 63.7, while analysts anticipated 58.3.
- The Reserve Bank of Australia, as expected, kept its policy unchanged. The central bank’s tone was optimistic as Australia’s economic recovery is faster than expected. As a result, AUD/USD modestly rose, but then lost its steam and dropped.
- Gold lifted up as US real yields dropped for the third time in four sessions. As a rule, falling yields push the USD down and gold up. But still gold should break above $1750 to rally up further.
- Google (Alphabet) was blamed for copyright violation as it used Oracle’s programming code, but all the charges were dropped. Thus, Google surged.
- Tesla jumped yesterday above $700 for the first time since mid-March as it had published better-than-expected car deliveries. However, it closed in red.
The euro keeps weakening amid the poor vaccination rollout in Euro Area. EUR/USD is edging lower to the 50-period moving average at 1.1760. If it manages to break it, the way down to the key psychological mark of 1.1700 will be open. On the flip side, if it breaks through the 100-period moving average of 1.1835, it may jump to the next round number of 1.1900.
AUD/USD has bounced off the resistance of 0.7660. It’s moving down to the low of April 2 at 0.7600. If it breaks it, the way down to the low of April 1 at 0.7540 will be open. On the flip side, the breakout above 0.7660 will drive the pair to the upper trend line at 0.7700, which it’s unlikely to cross on the first try.
Gold is rising! It’s getting closer to the recent high of $1750. If it manages to cross it, the way up to the 50-day moving average of $1765 will be clear and then to $1810 at the 100-day moving average, if bulls keep momentum. However, it’s hard to believe that gold may rally so high as the overall trend is down. If the price breaks through the support of $1700, the way down to the low of March 30 at $1680 will be open.
Finally, let’s discuss USD/JPY. It has bounced off the 50-period moving average of 110.00. The breakout above 110.70 will drive the pair up to March highs of 111.00. Support levels are 110.00 and 109.50.
The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!
Before Joe Biden sat face-to-face with Xi Jinping on Monday night at a seaside resort in Bali, US officials played down hopes for tangible progress. The outcome easily exceeded those low expectations.
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…
Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.