Two trades to watch: EUR/USD, S&P500
Fiona Cincotta May 27, 2021 2:31 AM
EUR/USD trades around 1.22, GFK consumer confidence misses. S&P500 looks ahead to US GDP Q1 revision, initial jobless claims & durable goods orders.
EUR/USD trades around 1.22, German GFK consumer confidence misses
German GFK consumer confidence improved by less than expected for June. The consumer sentiment indicator ticked up to -7 from a downwardly revised -8.6 in May. Expectations had been for -5.5.
US Dollar Index holds the majority of gains from the previous session as investors brace themselves for tomorrow’s inflation print.
Today, US durable goods orders, initial jobless claims and Q1 GDP (2nd reading) are awaited. GDP expected to confirm 4.1% QoQ whilst jobless claims are expected to fall to a new pandemic low of 425k.
Where next for EUR/USD?
EUR/USD has been trending higher since early April, trading above its steep 2 month ascending trendline. At the same time a descending trendline dating back to the start of the year aided in the formation of a symmetrical triangle. The price broke out of this triangle to the upside earlier this month, which could put 1.2280 the January 8 high as the next target ahead of 1.2350.
However, there is signs of negative RSI divergence a sign that momentum is slowing and could precede a move lower. It would take a move below support at 1.2150 last week’s low and the ascending trendline support to negate the near term uptrend.
S&P 500 looks ahead to US GDP revision, durable goods & jobless claims
US stocks rebounded on Wednesday as investors continued to battle reopening optimism against concerns over rising prices.
Fed speakers re-iterated that inflation was likely transitory, reining expectations of the Fed tapering support earlier, lifting stocks
The lion’s share of data will be from the US with US durable goods, initial jobless claims & GDP data all due.
Where next for the S&P 500?
The S&P 500 has traded within an ascending channel since early November. It trades above its 50 and 100 ascending trend line indicating an established bullish trend.
The price also pushed back over the descending trendline dating back to the start of this month.
The MACD appears to be forming a bullish crossover which could suggest that there is more upside to come.
Any move higher would need to over come resistance at 4215, the weekly high in order to move on towards 4245 the all time high.
On the flip side strong support can be seen around 4100, the 50 sma, the descending trendline support and the late April low. A move below here could negate the near term uptrend.
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.