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US Market Review 7th May 2021

May 7, 2021 (11:07)

by Elina Nikolova

After Gold repeatedly tested the $1800 price without being able to reach it or break it, the price yesterday moved above the 100 Day Moving Average, breaking the 1.618 Fibonacci resistance at $1805.00 in a dramatic fashion. The daily chart confirmed the reversal of the bearish trend by retesting of the $1677 price level with a double bottom. The price today continued to rise up and trade above $1805, all the way to the $1822 price level. The MACD signal line is crossed above the MACD line since last week and is above the zero line in bullish territory. With a confirmed close and trading above the $1805 price level, the precious metal may rise further in value. This view may be strengthened from today’s Unemployment Rate and Non-Farm Payrolls announcements that could possibly cement the hopes of quick recovery from the pandemic crisis. Important resistances lie at 200 Day moving average price $1850, at 2.618 Fibonacci extension at price $1885, and the 3.618 Fibonacci extension at $1965 price level. Important supports lie at $1805 1.618 Fibonacci extension and at $1756 support level formed from the last price bottom.

• The US and Canada markets will be busy with important announcements on Unemployment Rate and Employment change. According to “Investing.com”, Nonfarm Payrolls measures the change in the number of people employed during the prior month, excluding workers in the farming industry. Given that full employment is one of the Federal Reserve’s mandates, investors watch it closely.

• According to CNBC, The U.S. employment picture improved sharply last week, with first-time claims for unemployment insurance hitting a fresh pandemic-era low.

Stock markets have climbed to record levels with the Dow Jones Industrial Average closed at an all-time high on Wall Street on Thursday, as economic data has pointed to a strong global recovery. Contracts on the Nasdaq traded in positive territory, ending its longest losing streak since October.

• At 12:30 GMT we have the CAD Employment Change data and Unemployment Rate. The Unemployment rate shows Percentage of the total work force that is unemployed and actively seeking employment during the previous month.

• At 12:30 GMT the US Average Hourly Earnings, US Non-Farm Employment Change and US Unemployment rate are expected to be announced. The Hourly Earnings report shows the change in the price businesses pay for labor, excluding the farming industry.

US Indices yesterday:

• Dow Jones +0.93%
• S&P 500 +0.82%
• Nasdaq +0.37%

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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