- Aug 6, 2015
Fundamental Analysis Report With Charting Trends - 04 August 2023
Nervous Excitement Grips Traders as US Job Data Sparks Market Anticipation.
In anticipation of important job numbers later today, investors meticulously analyzed changes in treasury yields, economic data, and profit reports yesterday. The day resulted in a mixed performance for US stock markets. The S&P experienced a slight decline of 0.25%, the Nasdaq, on the other hand, saw a modest rise of 0.08%, while the Dow ended the day lower by 0.19%. Sterling faced downward pressure after the Bank of England announced a 25bps raise, while the currency market had a relatively calm day, trading in narrow ranges but at the top of recent USD levels. The benchmark 10-year US Treasury note traded as high as 4.198% throughout the session. After the market closed, Amazon shares soared as it anticipated substantially greater third-quarter revenues than expected. Meanwhile, Apple’s shares fell due to weaker iPhone sales.
Important US Job Data TodayTraders are keeping a close eye on the prestigious release for the financial markets today. Investors have long been focused on non-farm payrolls, now known as employment change, which has given many traders nightmares when unexpected prints took markets on rollercoaster rides they didn’t really need on a late Friday trading session. The Federal Reserve has stated that they are closely monitoring the data as they approach the end of their tightening cycle, adding even more significance to today’s event. The unemployment rate is expected to remain at 3.6%, and the headline number is projected to climb by 205K. However, if one of these expectations is significantly off, traders may find themselves getting back on the rollercoaster, whether they want to or not!
What Happened In The Asia Session?During the Board meeting in August, the potential for further tightening of monetary policy was considered. Nevertheless, it was ultimately concluded that keeping rates unchanged was the better course of action, considering the severe tightening of policy that has already occurred. Therefore, we might witness an increase in interest rates as the year draws to a close, and currency pairs like AUD/USD could eventually experience bullish momentum.
What Does It Mean For The Europe & US Sessions?The most important news event today will be the Non-Farm Employment Change in the United States. This is expected to create another exceptionally volatile session for both currencies and gold prices.
Expert Analysis: Forex And Cryptocurrency Trading Recommendations
Exponential Moving Average
- EMA 5: The 5-day EMA stands at 1.2709, suggesting a bearish sentiment.
- EMA 20: The 20-day EMA displays 1.2772, reinforcing a bearish indication.
- EMA 50: With a value of 1.2822, the 50-day EMA aligns with a sell recommendation.
Simple Moving Average
- SMA 5: The 5-day SMA shows 1.2699, indicating a bearish sentiment.
- SMA 20: The 20-day SMA records 1.2787, supporting a bearish stance.
- SMA 50: The 50-day SMA stands at 1.2893, signifying a sell indication.
RSI (Relative Strength Index)The RSI, calculated over a 14-day period, displays a reading of 36.42, suggesting a negative signal.
Stochastic OscillatorThe %K value of the Stochastic Oscillator suggests a positive condition.
Resistance And Support Levels
- Resistance: The resistance level is identified at 1.2761.
- Support: The support level is observed at 1.2679.
Summary And Trade SuggestionsBased on technical analysis, GBP/USD presents a bearish outlook. Traders may consider entering a short position, considering the indicators, moving averages, and oscillators.
- Entry Point: 1.2640
- Take Profit: 1.2538
- Stop Loss: 1.2730