The S&P(SPX 500) looking for a full recovery
The S&P(SPX 500) grinds higher as last week’s underwhelming ADP and NFP job numbers raised the hopes that the Fed could act sooner rather than later with a potential rate cut. The Fed wants to see all avenues of data before making any decisions at their next meeting. This could lead to another opportunity for bull traders as price action looks to reclaim its previous peak. Investors remain cautious as lingering concerns over the health of the economy continue to shift sentiment. 611 is a major ceiling, with 5750 the closest support.
EURUSD awaiting inflation data
The euro maintains its bullish rally as the greenback remains pressured. With inflation looking to creep higher this week, the Fed will be in the spotlight again if they fail to drop rates at their next meeting. Since the ECB cut another 25 basis points last week, expect some major volatility if the inflation number ticks higher than expected, as whispers of a possible recession remain on trader’s lips. 1.1550 is the next resistance, and 1.1300 is a fresh support.
AUDUSD remains elevated
The Australian dollar inched higher as the pair remains in a long-term bullish channel. The Aussie has been standing firm thanks to encouraging data from China, with a renewed hope that the country is finally ready to make a trade deal with America. With business confidence on shaky ground, this week’s news release could see the Aussie slide further into the red. 0.6600 is a key resistance, and 0.6400 is a critical support at the lower end of the current price channel.
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