Apple Shares to Surge on Another US Stock Market Rally
GBPUSD Range Setup | Resistance at 1.5200
Yesterday’s stronger than expected UK services PMI release was enough to boost GBPUSD to the top of the range on its 4-hour time frame. Price is still hovering around the resistance area for now, still deciding whether to make an upside break or to test support once more.
The BOE interest rate decision scheduled today could be a big catalyst for a move in either direction. A hawkish statement could lead to an upside break and gains of around 200 pips, which is the same height as the rectangle pattern. On the other hand, a dovish statement could lead to a move back to the bottom of the range at the 1.5000 major psychological support.
The path of least resistance is to the upside, as traders are also pricing in a potential disappointment for the upcoming NFP release. Earlier in the week, labor indicators of the ISM survey reflected a downturn in employment while the ADP report missed expectations.
In addition, the BOE has been sounding optimistic recently, citing that the downturn in inflation might actually spur stronger consumer spending. Policymakers have also noted that wage inflation is picking up, even though the minutes of their meeting reflected a more cautious outlook.
NZDJPY Long-Term Channel | Support at 85.00
NZDJPY is sitting at the bottom of the rising trend channel on its daily channel, prime for a strong bounce back to the top. Last month, the RBNZ shifted to a more cautious bias after saying that it could be open for a rate cut if needed. However, data from New Zealand has surprised to the upside, hinting that the economy could stay resilient.
A bounce off the channel support could lead to a long-term climb up to the channel resistance at 95.00. Risk appetite appears to be picking up lately, as oil prices seem to have bottomed out and the latest dairy auction showed a strong bounce in prices. New Zealand also printed an impressive quarterly employment report, which indicated a 1.2% gain in hiring and a stronger participation rate.
A break below channel support, on the other hand, might lead to further losses for the pair. This could lead to a move until the next major support around the 80.00 psychological level. Stochastic is pointing up though, which suggests that the path of least resistance is to the upside.
Data from Japan has been mostly disappointing, as CPI has been consistently falling and spending has failed to pick up after last year’s sales tax hike. This opens the case for further easing from the BOJ, which might mean another strong jump from NZDJPY and other yen pairs.
Sustained Buying Pressure for AAPL Shares | Breakout Above 120.00 Resistance
AAPL shares are still testing the previous year’s highs around the $120/share level as demand has picked up for the stock. Risk appetite has also returned to the US equity market, as commodity prices have recently shown a strong rebound and central bank easing could spark stronger economic activity later on.
The upcoming NFP release could be an event risk for this stock price’s action, as another strong figure could renew speculations of Fed tightening. This could force AAPL shares to return some of its recent gains, as the prospect of higher interest rates could mean weaer spending and more expensive credit.
If the $120/share resistance holds, AAPL shares could retest support at the 50 simple moving average, which has acted as a dynamic inflection point in the past. MACD is moving higher, indicating that further gains are possible, while RSI is nearing the overbought area.
Sustained buying pressure could lead to a move until the $125/share level later on. If sellers take over, AAPL shares could gear up to test support around $106/share.