Morning Insights 3rd February

Simon Alagbe

Analyst


Instrument: US 30 (Dow Jones Industrial Average)

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 30596 with take profit at 30343

Bullish Preference: Buy position is envisaged if price trades above 30838 with take profit at 30983

Fundamentals:

ADP Non-Farm Employment Change (US) 2:15 PM 

ISM Services PMI (US) 4:00 PM

Comment: The positive tone in the market remains intact after DJIA closed higher in yesterday session, continuing its recent recovery. The optimism towards the stimulus package and impressive earnings data from corporations supported sentiment. DJIA is expected to continue its bullish run once it surmounts the 30787 resistance level. 



Instrument: GOLD

Technical Analysis:

Bearish Preference: Sell position is envisage if price trades below 1834.29 with take profit at 1830.64

Bullish Preference: Buy position is envisaged if price trades above 1845.62 with take profit at 1850.27

Fundamentals:

ADP Non-Farm Employment Change (US) 2:15 PM 

ISM Services PMI (US) 4:00 PM

Comments: Gold was up on Wednesday morning in Asia, amid growing hopes of further U.S. stimulus measures. Democrat lawmakers in the U.S. Senate began debate on a fiscal 2021 budget resolution with COVID-19 aid spending instructions. This is a first step towards passing the $1.9 trillion stimulus package proposed by President Joe Biden and a sign that the Democrat-majority chamber will advance the bill without Republican support.



Instrument: AUDUSD

Technical Analysis:

Bearish Preference: Sell position is envisage if price trades below 0.75953 with take profit at 0.75738

Bullish Preference: Buy position is envisaged if price trades above 0.76230 with take profit at 0.76433

Fundamentals:

ADP Non-Farm Employment Change (US) 2:15 PM 

ISM Services PMI (US) 4:00 PM

Comments: AUD/USD takes a U-turn from intraday top of 0.7620 towards 0.7600 after RBA Governor Philip Lowe sounded dovish in her speech, published early on Wednesday. The dollar was slightly up on Wednesday morning in Asia, trading near a two-month high against the euro as the disparity between the strength of the U.S. and Europe’s pandemic recoveries widened.

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