Forex Trading Library

The Week Ahead – Closing the Gap

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SPX500 hitting another record
The SPX500 Chart: S&P 500 hits record high fueled by AI stocks, next target 5500, support at 5000.

The SPX500 pushed to another fresh high as AI stocks continued to propel the market. Nvidia reported Q1 earnings that beat expectations, and the stock rose over the $1,000 per-share level for the first time. With the likes of Microsoft and Apple continuing the bull trend, it looks like the tech dominance will be here for years to come. As this news boosts the US indices, 5500 is the next target to the upside, with 5000 being the closest support.

EURUSD correcting but remains bullish
EURUSD Chart: EURUSD bullish trend with correction, support at 1.1780, resistance at 1.0900.

With traders eagerly anticipating any signal of a Fed rate cut soon, the ongoing Fed testimonies are closely watched for potential insights. April and May’s job numbers are still insufficient to justify rate cuts, and more data is needed to assess the next direction. With the ECB being the next central bank to deliver CPI data this week, we will have more of an idea of the direction the pair will go. 1.0900 is the top, and 1.1780 is fresh support.

USDCHF rebounds on hawkish Fed comments
USDCHF Chart: USDCHF rebounds on hawkish Fed comments, resistance at 0.9200, support at 0.9020.

The US dollar recoups some losses as the Fed remains poised to cut rates more than once this year. Assertive comments from the central bank have kept the dollar bulls hopeful. With inflation remaining sticky, it could only take a few tenths of a percentage drop for the Fed to act without forcing inflation down to the 2% target. 0.9200 is the closest resistance, and 0.9020 is the floor to keep the pair afloat.

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