Emini Dow Jones Potential Movement

The EUR/USD stayed above 1.1250 as the US Dollar weakened. The GBP/USD found support and tested 1.3400 amid trade uncertainties. Gold prices remained above $3,200 despite some daily losses. Hopes for a possible ceasefire between Russia and Ukraine lifted cryptocurrencies, while mixed economic results in China in April were influenced by ongoing trade tensions. Equities tested familiar resistance levels before retracing to find support, aligning well with technical setups. The S&P e-mini hit the 5960/65 resistance area again. It briefly pushed above 5980 to touch 5993 but quickly retreated, hinting that buyers weren’t very committed, likely due to overbought conditions. The low of the day at 5893 matched the previous day’s low, creating what appears to be a near-term support level. If the price remains above 5950 or 5965, we could see another attempt to reach key levels like 6000 or even higher, depending on momentum. However, if it drops and stays below 5950, we might see early weakness, potentially testing the 5910 level again or even lower.

Nasdaq Support Analysis

The Nasdaq reacted predictably. The region around 21200/21100 was on our radar, and prices bounced right off it, making these levels valid for future retests. Traders could have made over 400 points on long positions if managed within risk limits and with sensible stop-loss orders below 20950. Now, we need to watch how the index reacts if it breaks below 21100. The next key support zone would be 20840/820, and 20650/600 becomes important if the weakness persists. In the Dow e-mini, we moved from the 42470/430 range to a high near 42950. This movement met our expectations and indicated further upside towards 43100/150. However, if it falls back below 42300, it could put pressure on the index, dragging it down to 41950/850. Traders might then start adjusting their positions, especially if volatility rises. Shifting our focus to currencies, the Euro held comfortably above 1.1250, owing to consistent pressure on the Dollar. Buying interest is present, though not aggressive, and as long as this support holds, the pair could rise if the Dollar weakens. For Sterling, the 1.3400 level attracted interest due to recent trade policy uncertainty, particularly from the UK. Positioning around this figure may tighten for now as we await more clues from macroeconomic news or central bank updates. Gold continues to show strength, staying above $3,200 despite some daily fluctuations. Investors seem to be holding their positions as a hedge against broader tensions. Although there hasn’t been a breakout, we shouldn’t overlook its staying power, especially with ongoing concerns about global inflation. Digital assets found support from talks of peace between Russia and Ukraine. Soft remarks from Fed officials also provided a slight boost. In Asia, mixed economic data from China has left regional trade forecasts inconsistent. These numbers suggest that a full economic rebound isn’t imminent, and traders focusing on commodities should keep this in mind for long-term strategies. Looking ahead, technical patterns suggest we may see moderate trading ranges rather than sharp breaks. Support and resistance zones continue to create a viable trading structure. How these levels hold or fail will define trade setups. Recognizing when to maintain a directional approach versus reverting to range strategies could be crucial, especially with ongoing external developments. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now