The market sentiment is mixed. Let’s look at most interesting movements on the market today.
Main market movements on June 9
S&P 500 keeps rallying
S&P 500 passed $3200. It’s only $200 left to reach the pre-crisis level and erase all looses. Support levels are $3135 and $3000. David Sowerby, portfolio manager at Ancora Advisors in Cleveland, shared his thoughts: “I don’t think even the most optimistic bullish bull could have anticipated this. The words that comes to mind are epic, monumental.” Indeed, the S&P 500 performance has been unbelievable. It managed to rise for a really short time. Reasons are the encouraging NFP data and the enormous amount of stimulus from the Fed. The strategists at the Bank of America raised its year-end target to 2,900 from 2,600. However, they mentioned long-term risks such as the second coronavirus wave and the US election.
Gold has just passed $1700
Gold lost its positions with a renewed USD demand on Friday after the NFP report. However, yesterday gold bulls were stronger and the XAU/USD price went above the key resistance level at $1700. Now the price is headed towards the $1750. Support levels are $1680 and $1635.
EUR/USD fell on weak German data
The US dollar has been loosening against EUR for quite a long time. However, some events changed that. Firstly, better-than-expected NFP on Friday gave a stimulus to USD. Secondly, the weak German data put some pressure on EUR. All together they pushed the pair down. If we look at the chart, we’ll see that EUR/USD is headed towards the 61.8% Fibonacci level at 1.117. If it crosses it, it may go even deeper to 1.1065. Resistance levels are 1.131 and 1.150. Follow the FOMC statement tomorrow at 9:00 MT time as it will add some fresh volatility.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.