When the Stock Market is More Interesting Than World News

Fundamentals

European markets were closed for Easter on Monday. In terms of noteworthy fundamental news, China released its GDP data. Both the GDP and industrial production in China are rising, 6.9% versus the expected 6.8%.
BoJ Governor Haruhiko Kuroda spoke Monday. He talked about the need to monitor the price trend and to stick to a soft monetary policy in order to achieve inflation targets. Mr. Kuroda also noted weak consumer demand, which is now recovering. Kuroda's speech had no effect at all on the value of the local currency, as he didn't say anything new. According to the latest estimates, inflation is declining again in Japan. The number for February, 0.3% was released on March 30.
Among today’s macroeconomic indicators, traders will be watching US new building permits at 12:30 GMT. The indicator is expected to rise from 1,213,000 to 1,250,000.
Additionally, the global dairy price index is being released today in New Zealand (the time is still to be announced).

Stocks

Today will be a most interesting day for corporate reports.
Both Bank of America and Goldman Sachs are reporting their earnings today. While Goldman Sachs’s market capitalization continues to grow, if slowly, the BoA report is expected to be fairly modest, with the EPS falling to $0.35.
Technically, it should be noted that the MACDF started falling on the Goldman Sachs weekly charts, sending a weak trend reversal signal. Meanwhile, the price broke through the support at $227.50, which is a 23.60% Fibonacci retracement. Still, this breakout may well be a false one, in which case the price may bounce back above the support.
Bank of America price movements replicate those of Goldman Sachs fairly exactly. The support was at $22.50. There has now been a breakthrough, but it’s too early to say whether it will settle below the 23.60% Fibo retracement. If the bears keep attacking, the support will move to $20.50.
Meanwhile, Russia’s MICEX Index was trying to recover Monday. Technically, if the price bounces from the current level, it may rise to 2,000, which is a 23.60% Fibo retracement.

Currency Market

The EUR/JPY pair is moving along the middle Bollinger band. The bears are feeling fairly confident. Still, we cannot ignore that the MACDF has started rising on the daily charts, which is a weak buy signal. If the price does reverse, the resistance will be at 118 yen, right near the middle Bollinger band. On the other hand, the pair is trading within a diverging triangle and might go higher with the last bullish correction wave.
As we noted, with respect to the AUD/USD pair, the Aussie rose to 0.7600, and now the bulls are attempting to attack. If they succeed, the next target will be at 0.7700, where a double top may form. This still remains to be seen, although there are some buy signals: the MACD is crossing the signal line and the DM+ and DM- lines are crossing.

Nikolay Dudchenko, Olymp Trade Analyst

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