Morning Insights 5th August

Simon Alagbe

Analyst


Instrument: AUDUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 0.71918 with take profit at key level 0.72192.

Alternative scenario: Sell position is envisaged if price trades below 0.71462 with take profit at 0.71089.

Fundamentals:

ISM Non-Manufacturing PMI (USD) 3:00pm 

Comment: The dollar was down in Asia on Wednesday morning, with hopes of a U.S. economic recovery from COVID-19 continuing to diminish. Investors retreated from the greenback as the U.S. Congress failed to reach a consensus over the country’s latest stimulus measures and U.S. yields continue to plummet.





Instrument: US30

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 26863 with take profit at key level 26979.

Alternative scenario: Sell position is envisaged if price trades below 26666 with take profit at 26497.

Fundamentals:

ISM Non-Manufacturing PMI (USD) 3:00pm 

Comment: Wall Street ended higher after a choppy session on Tuesday, lifted by Apple and energy stocks but limited by declines in AIG and Microsoft while investors awaited more U.S. government stimulus to fight economic fallout from the COVID-19 pandemic. Technically, Dow Jones has continued its bullish momentum and is expected to test the verified resistance.

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