The three major US stock indices closed slightly higher yesterday, with an average gain of 0.3%, despite a lack of significant news. However, markets are still reacting to the recent intervention by the Bank of Japan, which caused the Japanese Yen to record its largest single-day gain since December.

US data today

Another round of important events is scheduled for today despite the anticipation surrounding the Federal Reserve decision later this week.

Indicator Forecast Prior
Employment Cost Index QoQ 1.0% 0.9%
House Price Index 0.1% -0.1%
Chicago PMI 44.9 41.4
CB Consumer Confidence 104.0 104.7

The Employment Cost Index measures the cost of labor, including wages, salaries, and employer costs for employee benefits, which is all related to inflation and may have a significant impact on the markets today.

DXY near 106.0 again

The US Dollar has been trading within the same range of 105.50 to 106.0 for the past five sessions. Technical indicators have remained almost unchanged.

As per the time/price method, May 2 is a crucial date that can provide insights into the direction of the market’s next movement. If the price breaks below 105.50, it could lead to further declines. On the other hand, if the price stabilizes above 106.0, it would confirm the continuation of the upward trend, and the next resistance level at 106.60 would become more attainable.

Gold near support

During yesterday’s trading, Gold failed once again to break above $2340, which led to another leg down in Asia. This break confirmed the continuation of the downside retracement as it broke its bear flag on the 4H chart.

The next support level is at $2318. If this support level breaks, it will clear the way for further declines towards the next support level, currently at around $2300. It would confirm a deeper correction if the price falls below this level.

GBPUSD at key resistance

GBPUSD experienced a significant correction last week, surpassing multiple strong resistance levels to reach as high as 1.2550, a key level for possible future moves.

Based on the time/price method, tomorrow is expected to be the day when the pair either confirms the end of its upward correction or breaks its downward trend. Either way, the method is predicting a significant move going forward. It is important to avoid jumping to conclusions and allow the price to guide us towards our next trade.

 

Prepared by Nour Hammoury, Chief Market Analyst at SquaredFinancial
Nour is an investor, independent market strategist, and financial advisor. He holds a BA in Finance and Banking Science from Al-Ahliyya Amman University and a CFTe in Economics from the International Federation of Technical Analysts. He has more than 15 years of experience in forex, stocks, and global economic developments, as well as central bank policies and intermarket analysis. He appears regularly on major international TV networks, such as BBC, Al-Jazeera, Al Hurra, CNBC, and Bloomberg, holding open discussions and sharing insights and readings of the markets and trends.

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