Currencies
- EUR/USD: The pair is trading in a descending triangle pattern on a 4 hour time frame. The next resistance is at 1.146 and the support is at 1.1024.
- USD/JPY: The pair is trading in a wedge pattern on a 4 hour time frame. The next resistance is at 124.13 and the support is at 115.92.
- GBP/USD: The pair is trading in a support zone 1.5113-1.5082 on a 4 hour time frame. The resistance is near the 1.5232 and the next support is at 1.508
Indicators
Indices
- Asian Markets closed higher by erasing their losses from yesterday. The Nikkei index was the best performing index is 1.92% and over the last 5 days it is down by 6.30%.
- European markets are trading higher during the early hours of trading. The CAC40 index is the best performing index during the session and it is trading higher by 1.41%. The index is down nearly 5.35% nearly during the past five days.
- US futures are trading higher ahead of the ISM manufacturing data. The DOW index was the best performer during the last session and it closed higher by 1.91%.
TOP News
- The Chinese Caixin final manufacturing PMI matched the forecast of 47.2 and came ahead of the previous reading of 47.
- The German manufacturing PMI data fell short of expectation with the reading of 52.3 while the forecast was for 52.6.
- The Italian manufacturing PMI also fell short of expectations with the reading of 52.7 and the forecast was for 53.4.
Things to Remember
- Use your stops and manage the risk
Market Sentiment
- Crude Oil: The black gold has formed a symmetrical triangle pattern on a 4 hour time frame. The next support is at 43.50 and the resistance is at 49.
- Gold: The precious metal is trading below its 50 and 100 day moving average on a 4 hour time frame. The next support is at 1100 and the resistance is at 1130.
- The VIX index dropped nearly 8.68% during the last session.
Top Economic data
08:30 GMT
GBP – Manufacturing
12:30 GMT
USD – Unemployment claims
14:00 GMT
USD – ISM Manufacturing PMI
Trends
The below chart shows NZD, JPY and AUD are trading higher against the USD.
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam