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China’s shares traded in New York briefly extended losses after the Biden…

China’s shares traded in New York briefly extended losses after the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation

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Market Focus

Stocks climbed as data showing the world’s largest economy is strengthening overshadowed inflation worries, with investors awaiting Friday’s jobs report. The dollar retreated.

The S&P 500 closed near session highs, while the Dow Jones Industrial Average rose to a record. China’s shares traded in New York briefly extended losses after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain companies from the Asian nation. In late trading, Beyond Meat Inc. slumped as the maker of plant-based protein products reported disappointing sales, and Peloton Interactive Inc. whipsawed as investors assessed its results.

Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low as labor-market conditions continued to improve and the economy reopened more broadly. Separate data highlighted a rebound in productivity in the first quarter as the pace of output exceeded a pickup in hours worked. Economists predict the upcoming employment report will show the U.S. added about 1 million jobs in April.

Main Pairs Movement

The greenback weakened versus most Group-of-10 currency peers as U.S. 10-year yields remained steady ahead of data Friday forecast to show employment growth in America soared. The Canadian dollar climbed to the highest since 2017 as metals helped to boost an index of commodities to a fresh 2015 high. o Ten-year U.S. yields little changed at ~1.56%; NFP forecast for a gain of 1m.

USD/CAD -0.7% to 1.2184; touched 1.2181, lowest since Sep. 18, 2017; higher gold, silver helped to buoy loonie. Options in loonie remain active amid call interest. Overnight volatility in USD/CAD hit ~9.77%, highest since early January on a closing basis, ahead of the nation’s employment data, also scheduled for Friday, which is expected to show a loss of about 150k jobs in the month.

GBP/USD down 0.1% to 1.3891; BOE slowed its emergency bond-buying and signaled it’s on course to end that crisis support later this year. EUR/USD +0.5% to 1.2060; poised for the first gain in three sessions; shared currency supported by cross-related buying and interest in short-dated euro calls.

Technical Analysis

EURUSD (4 hour Chart)

Euro fiber retreated yesterday gloomy amid fueled by macroeconomic data from the E.U and the U.S. which boosted risk sentiment, helped euro dollar to advance, currently trading at 1.206 that wipe out yesterday fail. For further eco-data driven, the euro holding a bull expectation to an extension ahead of NFP. For the technical aspect, the RSI indicator shows 58 figures, suggesting a bullish momentum at least for the short term. On average price view, 15-long SMA turned ascending slope and 60-long SMA turned it slope to the teeny-tiny upside in day market.

We foresee the market will continue whipsaw or choppy in a range between first support and resistance or even continue day gain traction further. On up way, if position breakthrough 1.207 level, we eye on next couple resistance of upside. Of course, the first immediately is on 1.199-1.2 around and 1.192 following.

Resistance: 1.207, 1.2105, 1.215

Support: 1.199, 1.19

XAUUSD (4 Hour Chart)

Gold rallied to a 2-month-long peak as seems bearish momentum had a correction to test the short position. Gold once ramp of to daily high at 1816 level then slightly resume position to nearly market close, trading at 1814.7. For the RSI side, the indicator shows 72.5 figures which suggest over-bought sentiment base on a 4-hour interval. On the other hand, 15 and 60-long SMAs indicator are shifting their sluggish movement to ascending momentum.

At the current stage, it seems market pricing for bullish trade while gold market without any cap pressure. However, we verdict that soared up rapidly in short term market could motivate take profit momentum. Therefore, for bull favor, first, immediately downside support at 1812.8 and psychological level at 1800 will follow.

Support: 1812.8, 1800, 1760

USDCAD (4 Hour Chart)

Loonie gains a downside victory intraday as it successively extended bearish momentum recently amid spectacular economic data trigger the risk-on mode to commodities-linked currencies, trading at 1.2158 which record-setting low in nearly 3 years. Meanwhile, an exceptional decrease in U.S. oil inventories didn’t pump up the price which holding beneath 65 levels where comfort at 64.88 as of writing. However, pan-industrial metal is constantly in gain traction. For the RSI side, the indicator shows 16 figures which represent the market is on an over-bought sentiment.

Overall, we foresee the market will continue its downside movement as bearish momentum is still in favor of traction. On the slid way, we expect to sell position will incent strong take profit on the psychological level at 1.21.

Resistance: 1.2264, 1.238, 1.2491

Support: 1.21

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U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots

U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots

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Market Focus

Stocks almost wiped out their gains as technology shares turned lower, offsetting optimism over solid corporate earnings and economic reports. Treasuries climbed.

The S&P 500 notched an advance of less than 0.1% while the Nasdaq 100 ended in the red. The Dow Jones Industrial Average rose to a fresh record. Moderna and Johnson & Johnson retreated, while Pfizer finished little changed on news the U.S. will support a proposal to waive intellectual-property protections for Covid-19 shots. Peloton tumbled after recalling its treadmill products. Copper and lumber rallied, adding to inflation worries.

As the world’s largest economy rebounds, an intense debate has emerged over whether actual price pressures are set to materialize. The five-year breakeven rate — a proxy for the annual inflation rate bond traders expects over the span — jumped to the highest since 2008. Despite the increase in commodity prices and supply shortages, several Fed officials said Wednesday that inflation is unlikely to get out of control.

Main Pairs Movement

New Zealand and Australian dollars outperformed Group-of-10 currency peers Wednesday as copper surged and a key gauge of commodities rose to the highest since 2015. The dollar was steady, while volatility in the pound hit the highest since March ahead of a Bank of England policy decision due Thursday.

Among G-10 peers, Kiwi led with gains of 0.9%; the Aussie and loonie rounded out the top three, with the latter jumping to the highest since 2018 before paring gains as oil dropped; the Norwegian krone lagged all. Rising commodities are contributing to more bullish sentiment on inflation, with the 5-year breakeven rate hitting the highest since 2008.

GBP/USD rises 0.2% to 1.3908; pared gains after rising as much as 0.3%. One-week volatility in the pound rose to 8.32 vols, highest since late March; Scottish independence vote also fueling higher vols. Elsewhere, gold was struggling in the day and set it below 1790 level, spiral in an accommodative choppy scope between 1764.5 to 1795.

Technical Analysis

EURUSD (4 hour Chart)

Eurodollar remains on lost traction to close the consecutive 2 days in negative, trading at 1.2003 around. The pair once dropped to its lowest level in more than two weeks at 1.1986 in the European session and seems to found support at 1.19~1.2 level. All in all, recently, the U.S. market continues to drive euro fiber movements while Europe lack of significant news catalyst.

For the technical aspect, the RSI indicator shows 40 figures, suggesting a bearish momentum at least for the short term. On average price view, 15-long SMA is maintaining a negative slope and 60-long SMA turned its slope to teeny-tiny downside intraday market.

We foresee the market will continue whipsaw or choppy in a range between first support and resistance as it tamps down from 1.213 which was a top pattern recently. On the slid side, we see 1.199 to 1.2 has a strong support level which forms by multi-month-long price cluster area were also a neckline for last bottom pattern. If the market extends its downside traction, the next support will eye on 1.19-1.192 around.

Resistance: 1.2105, 1.213, 1.22

Support: 1.199, 1.19

USDJPY (4 Hour Chart)

Japan yen fell toward to psychological level at the 109 stage after it fails to keep upward momentum above 109.45 that left the door open to a retreat when materialized amid a decline across the board of the U.S. dollar. During the American session, it printed a fresh daily low at 109.13. As of writing, it trading at 109.198. For the RSI side, the indicator shows 52 figures which suggest neutral market sentiment. On the other hands, 15 and 60-long SMAs indicator are retaining it ascending movement notwithstanding 15-long one seems to lose accelerating traction.

We expect 109 to still be a powerful support level as the yen has successfully defended in recent days. If the yen could consecutive stand above the first support level, we believe it could be deemed as a bull movement ahead. For upward favor, 109 level is immediately needed to defend nature and 108.37 followings. It’s worth noting that there has a downside resistance from above the current stage as the yellow line. If the yen could breakthrough the downside resistance, we see bullish momentum is upcoming.

Resistance: 110.412

Support: 109, 108.37, 107.936

USDCAD (4 Hour Chart)

Loonie resumed its downward traction and dropped below 1.2265 level which once slipped to a three-year-low at 1.225 level, trading at 1.22679 as of writing. The slide in loonie took place while broad-based U.S. dollar decline, amid risk appetite and lower U.S. yields following mixed U.S. data. For the RSI side, the indicator shows 34 figures which suggest a bearish momentum ahead for the short term. On averaging price perspective, 15-long SMA indicator turns it slope to downward movement while 60-long SMA indicator remaining it descending slope.

Sum up above, we expect the market will surround in consolidation between 1.2269 to 1.238 as the market seems misdirection with blurred price momentum. Albeit, if the market doesn’t stand above the first resistance at 1.238 level, we believe it remains bearish momentum for the long term.

Resistance: 1.238, 1.246, 1.2491

Support: 1.225

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Data released Thursday showed U.S. gross domestic product expanded at a 6.4%…

Data released Thursday showed U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter

20210430
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Market Focus

U.S. stocks rose to a record as investors digested the latest batch of corporate earnings and data that showed the American economy gained steam in the first three months of the year.

Amazon.com climbed after hours on a better-than-estimated revenue forecast, while Twitter sank amid a lackluster outlook. In regular trading, Apple wiped out its gains on concern that the iPhone maker may not sustain growth after a blockbuster quarter as it faces a tightening supply of chips.

The tech-heavy Nasdaq 100 broke a two-day losing streak. The volatility came as investors continued to assess major corporate results that overshadowed signs of a resurgence in the economy. Data released Thursday showed U.S. gross domestic product expanded at a 6.4% annualized rate in the first quarter, while applications for U.S. state unemployment insurance fell last week to a fresh pandemic low.

While the GDP figures may support the Federal Reserve’s strong assessment of the economy, the central bank is in no mood to halt aggressive support as it looks for even further progress in employment and inflation. Chair Jerome Powell on Wednesday dismissed worries about price surges or anecdotes of labor shortage, implying policymakers are prepared to run the economy hot for a while. President Joe Biden unveiled a $1.8 trillion spending plan targeted at American families, adding to the economic optimism.

With their plans, the Fed and Biden have delivered a boost to investor sentiment that has seen-sawed in recent days between optimism over a string of robust economic data and caution amid high valuations and speculation about stimulus tapering by year-end.

Main Pairs Movement

The dollar topped most Group-of-10 currency peers as 10-year Treasury yields rose to the highest in two weeks amid mounting inflation expectations and data showing U.S. economic growth is accelerating. The Canadian dollar outperformed as oil climbed and copper neared an all-time high.

Treasury 10-year yield up 3bps at 1.64%, paring a gain of as much as 8bps, as TIPS break evens touched the highest since 2013. Among G-10 peers, the greenback outperformed most except for the loonie and pound; the Swedish krona and Australian dollar lagged the pack.

USD/JPY climbed 0.3% to 108.94; rose as much as 0.6% to 109.22, highest since April 13. EUR/USD -0.1% to 1.2119 after earlier hitting the highest since February; options suggest further spot gains may come at a slower pace.

GBP/USD rose 0.1% to 1.3944, after earlier rising to the highest in over a week as UK PM facing a political risk. USD/CAD dropped 0.3% to 1.2283, earlier fell to 1.2281, lowest since February 2018; leads G-10 gains as WTI oil rises for the third day.

Technical Analysis

EURUSD (4 hour Chart)

Eurodollar retains monthly gains after reached top 1.2149 but stifle by 1.213 level while outer performance U.S. data failed to push the greenback forward, trading at 1.213 as of writing. For the RSI side, the indicator shows 60.3 figures, suggesting room for bullish momentum at least for the short term. On moving average price, 15 and 60-long SMA indicators remain an ascending movement.

Overall, we expect there still have an upper-space as market sentiment remains a benign bullish momentum. Again, we need to eyes on the eurodollar whether could emphatically stand above the 1.2106 level.

Resistance: 1.213, 1.22

Support: 1.2106, 1.199, 1.192

USDJPY (4 Hour Chart)

Japan yen retreat yesterday weakness from Fed’s impact that once hit all-day high 109.22 then slightly fell to 108.9 when market close. For the RSI side, the indicator has reached up to 61 figures, suggesting an optimistic sentiment for the bull movement. Moreover, 15-long SMAs have a golden cross 60-long one although 60-long SMA remains a smooth movement.

In the lights of day move, we foresee the market is establishing an upward momentum as price action and market sentiment. To maintain bull move, the neckline of the “V” pattern should be the immediately defend level, 107.937 following. On the up way, if the yen could penetrate day high level, place at 109.22, it could spur more buy-side demand.

Resistance: 108.93, 109.22, 110.412

Support: 108.37, 107.936

USDCAD (4 Hour Chart)

After breakthrough support at 1.238 level, loonie continues its downward momentum to nearly three years fresh low that trading at 1.228 as of writing. For the moving average side, 15 and 60-long SMAs remaining a descending trend. For the RSI side, the indicator has slipped into the over sought territory at 22 figure, suggesting an over pessimistic sentiment at the moment.

Continue our recent perspective, we still expect the loonie will have immense space for a downward trend as it penetrated 2 years neckline. However, consecutive 2 days over the sought sentiment of RSI indictor which we consider will have a mean reverse in imminent days. Otherwise, we do not see any support level on the lower bound in a long-term view.

Resistance: 1.238, 1.246, 1.2491

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