EURUSD V-SHAPED RECOVERY ACCELERATES AHEAD OF US TRADE DATA

The EURUSD bullish momentum accelerated in the overnight session as the US dollar declined. The pair rose after weak private payrolls numbers from the United States. Data published by ADP showed that private-sector employers added just 374k jobs in August, signalling that the Delta variant was having an impact on the economy. The pair also rose after strong Eurozone inflation and manufacturing data published on Tuesday and Wednesday, respectively. Later today, the pair will react to the latest US initial jobless claims and trade data.

USDCHF was in a tight range in the overnight session as investors waited for the latest Swiss inflation and GDP data. The data is expected to show that the country’s headline consumer inflation rose from 0.7% in July to 0.8% in August. At the same time, analysts expect the final reading to show that the Swiss economy expanded by 9% in the second quarter. Still, the Swiss National Bank (SNB) has signalled that it will not tighten monetary policy anytime soon.

American stocks jumped in the overnight session as investors remained optimistic about the country’s recovery. The Nasdaq 100 and S&P 500 indices soared to another record high, pushing their year-to-date returns to more than 20%. This growth has been driven by the recent strong quarterly results that revealed that companies were in good shape. Also, the recently-passed infrastructure deal has helped stocks. Elsewhere, crude oil prices rose after the OPEC+ cartel decided to continue with their gradual supply increases despite US opposition.

NDX100

The Nasdaq 100 index rose to an all-time high of $15,680 as investors remained optimistic about corporate earnings. On the daily chart, the index has moved above all moving averages. It has also risen above the key resistance level at $15,155. The Relative Strength Index (RSI) has moved to the overbought level of 70 while the MACD remains above the neutral line. Therefore, the index will likely keep rising as bulls target the key resistance at $16,000.

XBRUSD

The price of Brent erased some of the earlier losses after the OPEC+ meeting. The pair rose to 72.30, which was slightly above the 25-day and 50-day moving averages on the daily chart. The price is slightly below the YTD high of 78.60. It has also formed a bullish flag pattern that is shown in yellow. It is currently below the upper side of this flag. Therefore, the pair will likely break out higher in the coming days.

EURUSD

The EURUSD pair comeback continued in the overnight session. It rose to a high of 1.1845, which is slightly above the key resistance level at 1.1805, which was the highest level on August 13. The pair is slightly above the key moving averages. It has also formed a V-shaped recovery, signalling that the comeback is relatively strong. Therefore, the pair may keep rising as bulls target the key resistance at 1.1905.