U.S. private employers added the most jobs in six months, adding to evidence that the vaccine drive and business reopening are encouraging hiring

1 April 2021, 03:13

Market Focus

Technology shares led U.S. stocks higher, regaining favor on the last day of a quarter where they trailed the rest of the major market sectors, with President Joe Biden set to unveil his next stimulus plan.

Apple Inc., Microsoft Corp., and Tesla Inc. pushed the tech-heavy Nasdaq 100 up 1.5%, while the Dow Jones Industrial finished lower with investors favoring growth over value shares again. The benchmark S&P 500 set an intra-day high, retreating from a record closing level in the last moments of trading.

Data for March showed U.S. private employers added the most jobs in six months, adding to evidence that the vaccine drive and business reopening are encouraging hiring. On the other hand, however, the market shrugged off the worst-than-expectation data of pending home sales which record 10.6 contractions.

Investors, rattled this week by the meltdown at Bill Hwang’s Archegos Capital Management, are turning their attention to growth and inflation as volatility spurred by the forced sales subsides. While Europe’s struggle with inoculations and the resurgence of the coronavirus have tempered growth expectations, the U.S. vaccine rollout is surpassing targets.

Market Wrap

Main Pairs Movement

Oil fell after an OPEC+ panel meeting ended without an oil policy recommendation. The dollar weakened, but still posted its best quarter in a year. The Bloomberg Commodity Index and developing-nation currencies climbed.

The dollar index retreat from daily peak once approached nearly 6 months high then close at fell 0.12%. Moreover, the dollar declined against most G-10 peers, paring its biggest quarterly advance in a year as President Joe Biden unveiling his 2.25 trillion investment plans.

Loonie is down 0.5% to 1.2574 after falling as much as 0.7%, the hardest since March 11. Haven currencies faltered Wednesday, capping a quarter when rising U.S. Treasury yields created support for the dollar.

Technical Analysis

EURUSD (4 hour Chart)

Eurodollar has to quell nearly upwind movement then turn north way intraday amid weakness dollar as an investor are stay tune for President Joe Biden’s instruction investment plan, however, the market did not keep win while dragged down in nearly market close. On the 4-hour chart, we see that the eurodollar did not bounce back to our vital resistance point today that given a fragile spot from our perspective. In the meantime, both 15 and 60-long SMAs clinging to their downward trend. On the other hand, the RSI indicator set at 41 figure suggests a slightly bearish momentum for the short-term.

Therefore, we do not prospect for pick up way as aforementioned. For south way, the daily low, 1.17, will go down as frail but important support as its lack of price cluster below. Since once eurodollar is going to tamp down further this support level then the market could foresee another plummet ahead.

Resistance: 1.1765, 1.18, 1.1835

Support: 1.17

USDJPY (4 hour Chart)

USDJPY continues to perform its bullish momentum, currently trading at 110.73 which once hit 111, the one-year high level. On the market side, the Japanese yen extend its torrid devaluation momentum which has become unglued since this year. We believe that carry trade behavior prompts this rally branza to align with an unstoppable U.S. share market boost.

From a technical perspective, 15 and 60-long SMAs have an edge over in a pick-up way that retains its impetus. On the RSI side, the indicator slipped from overwhelming over the sought area to 69 figure, still suggesting a bullish guideline for the short term.

Therefore, combing the terms above, we foresee the yen market will remain in an upward position. But only one concerning spot currently, the yen has gained extraordinary reward since this year, so the possibility of keep picking up, we believe it will be a small-probability event.

Resistance: 110.85, 111.00

Support: 110.35, 109.8, 109.45

XAUUSD (Daily Chart)

Gold was rising more than 1% on Wednesday, recovering after posting sharp losses during two continuous days, despite a modest rally in U.S. yield, a correction of the U.S. dollar, month-end flow, and some profit-taking favored the rebound, according to traders. Gold recover further above $1700 to $1707.7 at market close, still under the downward resistance on its head. RSI indicator was recognized 49.7 figures, which still in the lightly bearish backdrop. Also, 15 and 60-long SMAs constantly on the exacerbated way.

In the lights of the points above, we expect the gold market will under pressure as downward resistance and unfavorable indicator guidance. On the slid side, the phycological level at 1700 still vital first pivot support, if stall, then eye-capture on 1678.85. However, once the market goes north way, the first resistance will be 1722.75 which oodles price cluster place.

Resistance: 1722.75, 1738.32, 1754.53

Support: 1700, 1678.85