Daily Review for May 07, 2021
Analysts estimate a NFP of at least 978,000 new non-farm jobs in the US.
The market will also have the US unemployment rate announcement.
ECB pushes the EURUSD above the 1.2000 mark. Today we will have announcements from Christine Lagarde, as continuation of the week’s monetary policy work.
Actual volatility and lower Treasury yields, manages gold to break the resistance at USD$1,800 per Troy ounce.
Hedge funds continue to sell technology stocks. Pressure on the Nasdaq 100 continues.
Bitcoin sideways. The market is aware to Elon Musk and his appearance on Saturday Night Live.
| EURUSD -0.09% |
| Important day in the market. We will have the NFP announcement. The market expects 978,000 new non-farm jobs in the US and a 5.8% unemployment rate. In the meantime, global fixed income and equity assets await the release of these indicators. The EURUSD is down 0.09% at the moment and is trading at 1.2056. |
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| Support 1: 1.2058 Support 2: 1.2056 Support 3: 1.2051 Resistance 1: 1.2065 Resistance 2: 1.2070 Resistance 3: 1.2072 Pivot Point: 1.2063 |
| The ECB announcements generated confidence in the market and the currency rebounded from the 1.1993 level to the actual. The price is above the 25-day and 50-day moving averages. Sideways movement until the NFP announcement. Pivot point at 1.2063. |
| GOLD +0.18% |
| Given the market volatility, gold price has managed to break the USD$1,800 resistance. Tuesday’s market correction and the decline in Treasury yields have supported gold’s upward momentum. Today, traders are assessing whether the metal will be able to hold above the 1,800 mark, depending on the NFP result. For the moment, the ADP data was lower than expected. |
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| Support 1: 1,816.90 Support 2: 1,815.40 Support 3: 1,812.95 Resistance 1: 1,820.85 Resistance 2: 1,823.30 Resistance 3: 1,824.80 Pivot Point: 1,819.35 |
| Price is slightly above resistance 1. Expected trading range between 1,812 and 1,824. Pivot point at 1,819. RSI in overbought zone. |
| NASDAQ 100 +0.13% |
| Hedge fund liquidation of technology stocks continues and with it the pressure on the Nasdaq 100 grows. Investors interest at this moment is to rotate from high growth stocks to value stocks. This is in anticipation of a possible increase in interest rates in the short term to mitigate the inflationary effect on the markets. |
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| Support 1: 13,621.62 Support 2: 13,613.62 Support 3: 13,603.12 Resistance 1: 13,640.12 Resistance 2: 13,650.62 Resistance 3: 13,658.62 Pivot Point: 13,632.12 |
| The index has fallen 5% during the week. The price is approaching the 50- and 100-day moving average at 13,300 support. Expected trading range between 13,603 and 13,658. Pivot point at 13,632. RSI neutral. |
| BITCOIN -0.91% |
| Bitcoin price has remained sideways between the range of 56,000 and 54,000. Investor interest in other cryptocurrencies has led the Bitcoin to remain stable for two weeks. Investors are now keeping an eye on Dogecoin and Elon Musk. The CEO of Tesla, will appear on Saturday Night Live show. During the show, lots of volatility is expected in Dogecoin and other cryptos. |
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| Support 1: 55,820.9 Support 2: 55,505.0 Support 3: 55,321.5 Resistance 1: 56,320.4 Resistance 2: 56,504.0 Resistance 3: 56,819.8 Pivot Point: 56,004.5 |
| Price is at the Ichimoku cloud. Expected trading range between 55.321 and 56.819. Pivot point at 56.004. Possible upward movement towards resistance 2. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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