The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Trading on Tuesday: Earnings Reports and US Inflation
- The earnings season starts today! Traders await reports from JPMorgan and Goldman Sachs at 14:00 and 14:30 GMT+3, respectively, and PepsiCo at 13:00 GMT+3. As a rule, the strong financial results push the stock price up, while poor data press it down. To get more tips, read the article: ‘How to trade on earnings reports’.
- Banks and financial stocks led the S&P 500 to a new all-time high, while Tesla, Nvidia, and Google helped push the tech-heavy Nasdaq 100 to a fresh record.
- Virgin Galactic has lost almost $500 million on the stock-sale plan after its founder Richard Branson flew to space. Virgin Galactic dropped by 17% to nearly $40.00, which was the biggest decline since December 14.
- The market awaits the US inflation today at 15:30 GMT+3 (MetaTrader time). It will shed a light on whether the Fed may start tightening the policy soon or not.
EUR/USD is moving inside the descending channel. If it manages to cross the 50-period moving average of 1.1845, it may fall to the low of July 9 at 1.1830 and then even to 1.1810. On the flip side, the breakout above the 100-period moving average of 1.1880 will push the pair to the psychological mark of 1.1900.
Gold has been rising for almost the whole July so far. However, it has still failed to cross the 38.2% Fibonacci retracement level of $1815. The breakout above it will push the pair to the next resistance level of $1833, which lies at the 50% Fibo level.
NZD/USD has failed to cross the 50-period moving average of 0.7000. Now, the pair is edging lower to the 0.6965 support. If it manages to cross it, it may fall to the low of July 9 at 0.6930. In the opposite scenario, the jump above the 0.7000 threshold will open the doors to 0.7040.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.