Charting the markets: 4/1/24
GBP/USD, EUR/JPY and USD/JPY are on the up post FOMC minutes while oil, gold and silver prices rise on heightened geopolitical tensions.
(AI Video Summary)
Indices analysis
In the latest "Charting the markets" video, it is mentioned that China's services sector is growing at its fastest pace in five months. However, Asian stock markets are declining due to a negative close on Wall Street and concerns about the Federal Reserve's stance on interest rates. Rate cut expectations have gone down from 90% to 65%. The focus of the day is on US employment data, which will give insight into the upcoming non-farm payroll report. The video starts by analysing the FTSE 100 index, which is facing resistance at a previous uptrend line. If support holds, the market could climb and retest its previous high. The DAX 40 index is waiting for inflation data from Germany, with support levels to watch and resistance in a sideways trading range.
Forex analysis
Moving to the US, the Dow Jones is starting to decline and could form a more significant top if it falls below a certain level. The US dollar is gaining strength, affecting the British pound. However, as long as the market stays above a support area, the upward trend remains intact.
The Japanese yen has weakened against the euro and the US dollar. The euro against the yen is breaking its downtrend line and could engage the December highs, indicating a bullish reversal. The US dollar against the yen is breaking through its moving average and downtrend line, with a potential rise towards the 55-day moving average.
Commodities analysis
Gold and silver prices have been affected by the stronger US dollar. Gold has stabilised and if it rises above a certain level, it could indicate a further rise. Silver has taken a bigger hit, but is currently holding support.
Lastly, the oil price has rallied due to geopolitical tensions and supply concerns. The crude oil futures contracts are heading towards a downtrend line, with potential resistance levels.
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