Morning Insights 5th May

Simon Alagbe

Analyst


Instrument: US100

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 13598.65 with take profit at 13633.55.

Bearish Preference: Sell position is envisaged if price trades below 13503.00 with take profit at 13462.93.

Fundamentals:   

No Major fundamentals

Comment: There are worries that President Joe Biden’s $2.3 billion capital-gains tax proposal may be on the rise, particularly after his address last week to a joint session of Congress and wealthier individual investors appear to have responded by selling off the stocks that have been the biggest winners since the start of last year. That said, prices seem to retrace from the drop recorded yesterday and should continue if US100 breaks the current resistance (21EMA).



Instrument: GBPUSD

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 1.39338 with take profit at 1.39489.

Bearish Preference: Sell position is envisaged if price trades below 1.38820 with take profit at 1.38693.

Fundamentals:

None with high Impact

Comment: The dollar pushed higher Wednesday, boosted by talk of higher U.S. higher interest rates while a selloff in tech stocks raised its safe-haven appeal. This bounce in the dollar came in the wake of comments from U.S. Treasury Secretary Janet Yellen suggesting rate hikes may be required soon. 

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