Positive Data Fuels Opening Week Rally – Forex News by FX Leaders – FX Leaders
This week is the first full trading week of Q3 and things are going well on Wall Street. At the midway point of the U.S. session, the DJIA DOW (+335), S&P 500 SPX (+42), and NASDAQ (+207) are all in the green. Safe-havens are also catching some bids, with the Swiss franc and GOLD leading the way. For now, it looks like no one is interested in holding the USD as positive economic data keeps rolling in.
During the U.S. early session, several reports were released to the public. Here are the highlights:
Event Actual Projected Previous
ISM Non-Manufacturing PMI (May) 57.1 50.1 45.4
Markit PMI Composite (June) 47.9 46.8 46.8
ISM Non-Manufacturing Employment Index (May) 43.1 30.7 31.8
The headliner of this group is the spike in the ISM Non-Manufacturing PMI. The 11.7 point month-over-month gain is rock-solid, suggesting recovery. This is another strong data set, suggesting that a robust economic recovery is well underway. Now, the only question is whether or not the U.S. will lockdown for a second time as confirmed COVID-19 cases grow.
Strong Economic Data Prompts Modest Action In The USD/JPY
After a bullish early forex session, the USD/JPY has reversed course. Rates remain in a noncommittal area for the third consecutive trading day.
Here are two levels to watch for the near future:
- Resistance(1): Bollinger MP, 107.57
- Support(1): Daily SMA, 107.22
Bottom Line: Tight trading conditions can be positive given the correct data-dependent strategy. In the case of the USD/JPY, a scalping setup may come to pass if rates fall to the Daily SMA. Until Tuesday’s closing bell, I’ll have buy orders in the queue from 107.26. With an initial stop loss at 107.09, this trade produces 12-15 pips on a rejection of the 107.25 quarter-handle.
Scalping Strategy Course (DVD + Online) - $299.00
In the much anticipated Forex Scalping Strategy Course, Vic and Sarid show you short-term focused techniques and strategies to make quicker profits while reducing market exposure.
Forexmentor Coach's Corner First Month (Online) - $149.00
The Coach's Corner offers 2 live sessions per week, an integrated approach to trading, FREE access to the VicTrade video course and Darko's Pattern Trading Video Lessons.