How to trade on August 4?
The market sentiment improved amid the slowdown in virus cases. Let's have a closer look at the AUD, S&P 500, gold and the GBP.
Here's what you need to know on July 14
The market sentiment deteriorated amid fresh US-China tensions. Countries have disputes over the Hong Kong and South China sea issues. Also, investors remain cautious as increasing virus cases may damage economic activity again. Stocks and risky currencies dropped, as well as gold. These days the yellow metal tends to move together with risk assets.
Watch our daily forex trading plan!
Stocks
Nasdaq reached the all-time high yesterday, but then dropped dramatically after that. However, today it rose again as investors turned their attention to earnings reports this week. If Nasdaq breaks through the resistance at 10 680, it will clear the way towards the next resistance at 10 845. Support levels are 10 515 and 10 320.
Nasdaq is traded as CFD futures contract in MT4 and MT5. You need to choose NASDAQ-20U in order to open a position.
USD/CNH
Moreover, the negative data from China came this morning. Trade balance turned out worse than analysts expected. It was 46 billion dollars, while the forecast was 58. As a result, USD/CNH surged. It will meet soon the resistance at the high of July 7 at 7.020. If it breaks it through it may jump towards the 200-day moving average at 7.045. Nevertheless, California imposed new restrictions on businesses as coronavirus cases rose. It may weigh on the US dollar in the long term. Look for support levels at 6.965 and 6.920.
GBP/USD
Later the United Kingdom released the poor GDP data. It turned out 1.8%, while analysts anticipated 5.5%. It weighed on the British pound. GBP/USD is moving down towards the support at the intersection of 50- and 100-day moving averages at 1.2415. If it breaks it down, it will open doors towards the next support at 1.2300. Resistance levels are at the 200-day moving average at 1.2680 and at 1.2750.
Gold
Let’s take a look at gold. It has just crossed the key psychological mark at $1 800. Now it’s moving towards the next resistance at $1 807. If XAU/USD crosses this level, it may surge to $1 815. Support levels are $1 794 and $1 778.
Upcoming events:
- The European industrial prodcution will be released at 12:00 MT time.
- The US CPI will be reported at 15:30 MT time. Stay tuned!
Similar
All eyes on AUD
The RBA will make a rate statement on August 4 at 7:30 MT time.
Main market movements on July 31
The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
Latest news
Big day for USD
The US NFP will be published on August 7 at 15:30 MT time.
Main market movements on August 6
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
GBP is in focus
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…
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