Dow Jones => The index rises to 35000
Micron Technology => The stock trades down 10% this month
EUR/JPY => The pair falls below 136.00
Dow looks to extend gains
The Dow Jones closed yesterday at 0.3%, building on gains from the past two weeks as sentiment continues to improve.
Optimism surrounding the latest Russia, Ukraine peace talks helped lift the market mood and falling oil prices. The UK economy remains in good shape, supporting the Federal Reserve’s more hawkish stance.
Today, the futures are rising modestly with attention on geopolitical risks, a speech by Fed Williams, ahead of US JOLTS job opening data, which is expected to underscore the tightness in the US labour market with over 11 million jobs available.
Where next for the Dow Jones?
The Dow Jones extended its rebound from the March low of 33350, re-capturing the 50 SMA, running into resistance at the 200 SMA at 35000.
The RSI is supportive of further upside. Buyers will need to break above 35000 in order to bring 35885, the February high, into play.
Sellers will look for a move below the 509 SMA at 34300 and horizontal support at 34100, for a deeper move lower towards 33500, a level that has offered support over the past 6-months.
Micron Technology Q4 earnings preview
Micron Technology is due to release Q2 earnings after the closing bell tomorrow.
Along with the broader market, the stock has had a rough ride at the start of 2022, trading some 15% lower. However, the share price weakness doesn’t always correlate with a company’s fortunes.
Micron Technology is expected to report solid results thanks to strength across the board, including the datacentre, mobile PC, and auto, and thanks to better than forecast performance of DRAM and NAND.
Expectations are for EPS of $1.98, over double last year on revenue of $7.52 billion.
EUR/JPY eases from a 6-year high ahead of German consumer confidence
EUR/JPY rallied to 137.55 in the previous session, a 2018 high, before easing slightly to end the day up 1.3% at 136.00.
The Japanese yen tumbled across the board yesterday as the BoJ said it would buy an unlimited amount of Japanese Government Bonds, a JGBs, sticking very much with its loose accommodative stance. The euro benefited from the potential central bank divergence after the ECB sounded more hawkish in the previous meeting.
Today, the euro could come under pressure as attention turns to Ukraine peace talks, which resume in Turkey, and German GFK consumer sentiment, which analysts expect to keep falling in April as inflation continues to surge.
|Ger. GFK consumer confidence
|Expected: -12 (7.7)
Support can be found at 134.00 ( May 2020 high) and 133.00 (February high).
Resistance for the pair can be seen at 136.50 (today’s high) and 137.50 (yesterday’s high)
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