Daily Market Analysis By FXOpen

European Currencies on Track to Yearly Highs


The first summer month saw a sharp rise in European and commodity currencies against the dollar. For instance, the pound/dollar is heading towards 1.2850, while the euro/dollar is set to test a significant resistance level at 1.0960. The surge in volatility at the beginning of the week was made possible thanks to the following events:

• Yesterday at 17.00 (GMT +3:00) the release of the ISM Manufacturing Purchasing Managers' Index (PMI) for the US (48.7 versus a forecast of 49.8);
• Yesterday at 17.00 (GMT +3:00) the publication of the ISM Manufacturing Prices Index for the US (57.0 versus a forecast of 60.0).

EUR/USD

Technical analysis of the eur/usd pair indicates the possibility of further growth towards 1.1100-1.1000, provided that the 1.0900 mark remains a support level.

In case of a break below the mentioned support, a test of 1.0880-1.0850 may be possible.

The following news releases may impact the pair's movement:

• Today at 10.20 (GMT +3:00) speech by ECB Governing Council member Eduardo Fernandez-Bollo;
• Today at 10.55 (GMT +3:00) release of the unemployment rate in Germany for May.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

European Currencies on Track to Yearly Highs


The first summer month saw a sharp rise in European and commodity currencies against the dollar. For instance, the pound/dollar is heading towards 1.2850, while the euro/dollar is set to test a significant resistance level at 1.0960. The surge in volatility at the beginning of the week was made possible thanks to the following events:

• Yesterday at 17.00 (GMT +3:00) the release of the ISM Manufacturing Purchasing Managers' Index (PMI) for the US (48.7 versus a forecast of 49.8);
• Yesterday at 17.00 (GMT +3:00) the publication of the ISM Manufacturing Prices Index for the US (57.0 versus a forecast of 60.0).

EUR/USD

Technical analysis of the eur/usd pair indicates the possibility of further growth towards 1.1100-1.1000, provided that the 1.0900 mark remains a support level.

In case of a break below the mentioned support, a test of 1.0880-1.0850 may be possible.

The following news releases may impact the pair's movement:

• Today at 10.20 (GMT +3:00) speech by ECB Governing Council member Eduardo Fernandez-Bollo;
• Today at 10.55 (GMT +3:00) release of the unemployment rate in Germany for May.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Analysis of PFE Price: Is the Stock Undervalued?


Yesterday, the price of Pfizer's stock rose by more than 2.2%, while the S&P 500 index remained almost unchanged from the opening to the closing of trading. This fact is noteworthy, considering that for many months the price of PFE stock performed worse than the market - if the S&P 500 grew by 23% during 2023, then the price of PFE decreased by approximately 43%.

The decline in 2023 (shown by the red channel) was disappointing. But what about now - is the situation changing? Are investors missing out on something important by turning away from PFE?

Several factors indicate that PFE stock may have optimistic prospects.

Fundamentally - Investors Place has included PFE in the list of the most undervalued stocks for reasons such as:
→ 2023 saw a record number of FDA approvals. New drugs could boost sales.
→ Pfizer acquired Seagen, significantly expanding its capabilities in cancer research. This supports the company's strategy to become a world-class leader in oncology.
→ By 2030, Pfizer plans to release 8 drugs that could become "blockbusters."



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Analysis: AUD/USD and NZD/USD Could Continue Higher


AUD/USD is correcting gains from the 0.6700 zone. NZD/USD is showing positive signs and might attempt a fresh increase above 0.6200.

Important Takeaways for AUD USD and NZD USD Analysis Today

• The Aussie Dollar started a downside correction from 0.6700 against the US Dollar.
• There is a key bullish trend line forming with support at 0.6645 on the hourly chart of AUD/USD at FXOpen.
• NZD/USD is gaining pace above the 0.6145 support zone.
• There is a major bullish trend line forming with support at 0.6170 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from the 0.6590 support. The Aussie Dollar was able to clear the 0.6630 resistance to move into a positive zone against the US Dollar.

There was a close above the 0.6645 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6700 zone. A high was formed near 0.6698 and the pair is now correcting gains.

There was a move below the 0.6670 level. The pair declined below the 50% Fib retracement level of the upward move from the 0.6590 swing low to the 0.6698 high. On the downside, initial support is near a key bullish trend line at 0.6645.

The next major support is near the 61.8% Fib retracement level of the upward move from the 0.6590 swing low to the 0.6698 high at 0.6630.

If there is a downside break below the 0.6630 support, the pair could extend its decline toward the 0.6590 level. Any more losses might signal a move toward 0.6520.

On the upside, the AUD/USD chart indicates that the pair is now facing resistance near 0.6670. The first major resistance might be 0.6700. An upside break above the 0.6700 resistance might send the pair further higher.

The next major resistance is near the 0.6720 level. Any more gains could clear the path for a move toward the 0.6750 resistance zone.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

S&P 500 Index: Latest Analysts’ Forecasts


Over the three spring months, the S&P 500 (US SPX 500 mini on FXOpen) rose by 3.5% – not the worst result, but it might be disappointing considering that in the first two months of the year the index increased by 7.8%.

This trend suggests that:
→ the rally driven by interest in AI is slowing down;
→ stock market participants are concerned that Fed rates will remain high.

What could be the scenarios for future developments until the end of the year and beyond?

The media publish fresh forecasts on the S&P 500 (US SPX 500 mini on FXOpen) price from Wall Street analysts:

→ MarketWatch: Analysts at JP Morgan believe that the growth potential is exhausted and the market may “hit a wall” preventing further growth. They maintain a forecast that the index value at the end of 2024 will be 4200 points.

→ MarketWatch: Experts at Wells Fargo think it would be too optimistic to expect stocks to reach new record highs ahead of the US elections in November; however, further growth related to the election results looks likely in 2025. They estimate the index could reach a record 5700 points by the end of next year.

→ BusinessInsider: According to Capital Economics, the index could rise if Treasury yields fall and the momentum from AI adoption remains strong. Their forecast is 6500 points by the end of 2025, followed by a sharp correction in 2026.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Is ADBE Stock Undervalued?


The stock chart for Adobe Systems shows that on May 31, 2024, the price fell below $440 – for the first time since June 2023. This drop was partly due to increased competition from Canva, which released updated tools.

However, in early June, the decline did not continue, suggesting that ADBE stock is consolidating around a multi-month low.

Since the beginning of the year, ADBE has decreased by approximately 23%, while the NASDAQ index (US Tech 100 mini on FXOpen) has increased by more than 12%. Is this indicative of serious problems for the company or is the stock undervalued?

A significant amount of information will come from Adobe Systems' earnings report, which will be released on June 13, 2024. According to Yahoo Finance.

The company's earnings per share are forecasted to be $4.38, representing a 12.02% increase compared to the same quarter last year.
Revenue is forecasted at $5.28 billion, a 9.65% increase compared to the same quarter last year.
It is noteworthy that since December 2018, Adobe has consistently exceeded expectations (though this has not always led to a rise in the stock price).

According to TipRanks, the average price target for ADBE stock is $624.83 over the next 12 months, indicating a potential upside of +39.36% from current levels – suggesting that most analysts do not believe the company has deep internal issues, as otherwise they would not be forecasting such price growth.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Price of Silver Is Acting Weaker Than Gold


According to Reuters, precious metal prices have risen in the past 1-2 days as Treasury yields have fallen, enhancing metals' appeal as a "safe haven" for investor portfolios.

Currently:
→ Expectations are growing that US interest rate cuts may begin as early as September;
→ Market participants are focusing on non-farm employment data and other US market data, set to be released on Friday at 15:30 GMT+3.

In this context, it is notable that the gold market is clearly stronger than silver.

The XAU/USD chart shows that the price of gold today rose above $2370 per ounce, a high not seen since 23 May, more than 10 days ago.

Meanwhile, the price of silver experienced a decline of over 8% from 29 May to 4 June. Today’s rise appears to be an attempt by bulls to offset this bearish momentum, during which the price of gold remained stable.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Dollar Continues Range-bound Trading Ahead of US Employment Data


Despite a busy start to the current five-day period, major currency pairs remain near previously reached extremes. Here’s what happened in recent trading sessions:

• The US ISM manufacturing PMI data was released (worse than expected: 48.7 vs. 49.8)
• The ADP employment report was released (worse than expected: 152K vs. 173K)
• The Bank of Canada meeting resulted in a 0.25% cut in the base interest rate to 4.75%

USD/CAD

According to the technical analysis of the USD/CAD pair on the daily timeframe, range-bound trading between 1.3740-1.3590 prevails. The price has remained within this corridor for over four weeks, making it difficult to predict the future direction without a decisive breakout. Currently, a bounce from the upper boundary is observed, and with an appropriate news impulse, a retest of 1.3610-1.3590 can be expected. Key upcoming events to watch:

• Today at 15:30 (GMT +3:00): Initial jobless claims in the US
• Tomorrow at 15:30 (GMT +3:00): Change in non-farm payrolls in the US (forecast: 185K)
• Tomorrow at 15:30 (GMT +3:00): Change in full employment in Canada

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

USD/CAD Analysis: Bank of Canada Cuts Interest Rate by 0.25%


This occurred yesterday and was in line with analysts' forecasts, according to a Bloomberg survey.

According to statements from the Bank of Canada:
→ Price growth indicators for consumer price index components have further decreased and are close to their historical average;
→ Recent data has increased confidence that inflation will continue moving towards the 2% target;
→ Monetary policy no longer needs to be as restrictive.

At the press conference, Governor Tiff Macklem stated that there is “compelling evidence” of weakening inflation and it is “reasonable to expect” further rate cuts if inflation continues to slow.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Analysis: Gold Price Gains Traction, Crude Oil Price Rises


Gold price started a fresh increase above $2,350. Crude oil is recovering and might rise toward the $78.40 resistance zone.

Important Takeaways for Gold and Oil Prices Analysis Today

• Gold price started a decent increase from the $2,315 zone against the US Dollar.
• A major bullish trend line is forming with support at $2,368 on the hourly chart of gold at FXOpen.
• Crude oil is recovering losses and trading above the $74.30 support.
• There was a break above a connecting bearish trend line with resistance near $73.50 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis


On the hourly chart of Gold at FXOpen, the price formed support near the $2,315 zone. The price remained in a bullish zone and started a fresh increase above $2,340.

The bulls even pushed the price above the $2,350 level and the 50-hour simple moving average. Finally, it traded as high as $2,385. The price is now consolidating gains near the $2,385 zone and the RSI is above 70.

Initial support on the downside is near the 23.6% Fib retracement level of the upward move from the $2,315 swing low to the $2,38 high at $2,368. There is also a major bullish trend line forming with support at $2,368.

The first major support is near the $2,350 zone and the 50-hour simple moving average. It is close to the 50% Fib retracement level of the upward move from the $2,315 swing low to the $2,38 high. If there is a downside break below the $2,350 support, the price might decline further.

In the stated case, the price might drop toward the $2,342 support. Immediate resistance is near the $2,385 level. The next major resistance is near the $2,392 level. An upside break above the $2,392 resistance could send Gold price toward $2,400. Any more gains may perhaps set the pace for an increase toward the $2,420 level.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.