Bitcoin, the world's largest and most popular cryptocurrency started the new month on a bullish note. The Bitcoin price jumped back to nearly $24,000 but pulled back modestly thereafter.
In the short term, the immediate support will be the same as the previous session’s low at $23,050, below which the slide could extend towards $22,300. On the upper side, if the pair break above $24,000 it would open doors towards the next resistance area of $24,500 and above that $25,000 is next.
For the long term, $22,200 is a crucial support zone to watch. If the pair breaks below $22,200, the slump will quickly extend toward the $21,000 and $20,300 marks. On the flip side, the bullish breakout of 25,300 is likely to push the crypto pair into a new trading zone, which may offer further buying opportunities until $26,000 then $27,500.
EQUITIES
US stock futures trading marginally lower on Tuesday and the upside pressure clearly weakening amid a solid ceiling in place, the near-term bias points to Wall Street weakness in the rest of the week ahead. The recent bearish sentiment was also fueled after the Federal Reserve (Fed) policymakers stated that the current monetary policy is insufficiently restrictive to reduce persistent inflation in the near term.
On the earnings front, Salesforce, Snowflake and Nio are amongst those reporting the last quarter's financial results today.
OIL
Crude oil futures edges higher during the Asian session after China, the world's biggest oil importer reported stronger-than-expected manufacturing data. China’s Manufacturing PMI increased to 51.6 in February 2023 from 49.2 in January, above the market consensus of 50.2. Meanwhile, the API crude inventories report showed the inventories jumped by 6.203 million barrels in the week ended February 24th, 2023, following a 9.895 million barrels gain in the previous week.
CURRENCIES
In the currency market, EURUSD rebounded from the early lows and tested the previous session highs after Goldman Sachs stated that it expects a 50-basis point increase in interest rates from the ECB in the May meeting after the March meeting. Moving ahead, the unveiling of the ECB minutes on Thursday may influence the euro, and any indication of a shift in policy could affect the euro and European markets.
GOLD
Gold price jumped to a fresh weekly high of $1837 during the European session on Wednesday after the dollar index extended losses and dropped below the 104.30 area. As of this writing, the metal retreats back to near the daily support area of $1830. Today gold investors and traders should closely monitor the release of US ISM manufacturing PMI data which is scheduled for later in the day.
Economic Outlook
On the data front, U.S. consumer confidence fell for the second straight month in February. The Conference Board reported Tuesday that its Consumer Confidence Index now stands at 102.9, down from 106.0 in January.
Moving ahead today, the important events to watch:
Germany – CPI: GMT – 12:00
US – ISM manufacturing PMI: GMT – 15:00
Technical Outlook and Review
EURUSD: Euro needs to stay above 1.0650; otherwise. 1.0570 and 1.0530 may be visible soon. On the upper side, if the pair breaks and closes above 1.0650 then the next resistance area to watch is around 1.0680 and the crucial one is 1.0700.
The important levels to watch for today: Support- 1.0600 and 1.0560 Resistance- 1.0670 and 1.0700.
GOLD: For today, the initial bias remains bullish. The key resistance is located for the metal around 1838, a break above this level will confirm a possible move to 1844/48. On the downside, any meaningful pullback now seems to find some support near the 1827 zones, below which the slide could further get extended towards the 1820/18 regions.
The important levels to watch for today: Support- 1827 and 1820 Resistance- 1838 and 1844.
Quote of the day - You don’t need to trade often. If you can catch one or two moves to the targets during the day with good size, you can make a good living and keep trading costs down.
Read more - https://gulfbrokers.com/en/daily-market-report-624