Market Reports by GulfBrokers - 2023

[syamfx2020]

EURUSD reversed from the previous session's losses and rebounded back to above 1.0600 after it found strong buyers nearby 1.0520. For today all eyes will be turning to the ECB's interest rate decision and ECB President Christine Lagarde's speech. Investors and traders are focused on possible measures and changes that the European Central Bank may undertake in today’s meeting.

ECB is expected to raise interest rates by 50 basis points in an ongoing battle against inflation despite the ongoing banking crisis. If the ECB maintains its hawkish stance and decides to hike rates by 50bps then the pair will regain further upside momentum. However, watch for weekly closing above 1.0750 or below the 1.0500 area, which will give a larger confirmation of direction in the long term.

EQUITIES

Global stock markets are struggling to regain footing after suffering steep losses in the last few trading sessions. While the European shares and the US stock futures slightly recovered from the previous session's sell-off after a backup plan was introduced for Credit Suisse's worsening financial conditions. Swiss banking giant Credit Suisse Group AG will borrow nearly $54 billion from Swiss National Bank (SNB) to improve its liquidity.

OIL

Crude oil prices slightly rebounded after worries about the European banking system eased. However, the overall sentiment remains under pressure as prices seem to be struggling to revive upside momentum as investors remain concerned about the global demand outlook. The EIA crude inventory data showed on Wednesday the US crude oil inventories rose by 1.55 million barrels, more than market expectations of 1.188 million.

CURRENCIES

In the currency market, the prominent safe-haven currencies the Swiss franc (CHF) and the Japanese yen (JPY) remain the strongest currency pairs of this week. GBPUSD traded modestly higher during the Asian session but failed to extend the upward momentum and it formed a short-term top near the 1.2110 level.

GOLD

The safe-haven metal hit a fresh monthly high of $1936 on Wednesday as Investors have been buying into the safe-haven metal as global market sentiment remains cautious. Technically, the medium-term trend remains supportive but If the US dollar regains upside strength in the coming days, we could see a pullback in the precious metals.

Economic Outlook

On the data front, U.S. retail sales fell moderately in February. The Commerce Department said retail sales fell by 0.4 percent in February after spiking by an upwardly revised 3.2 percent in January. On the other hand, the Bureau of Labor Statistics in the US released Producer Price Index in February, which showed a slowdown in producers' inflation.

Moving ahead today, the important events to watch:

US – Housing starts and building permits: GMT – 12:30

Eurozone – ECB interest rate decision and statement: GMT – 13:15

Technical Outlook and Review

EURUSD: For today, considering heavy volatility there are chances the currency pair can rally back to above the key resistance of 1.0700. On the downside, the decline is more extensive, and it will be hard to rule out a run towards 1.0520 and 1.0500 if the pair breaks below 1.0570.



The important levels to watch for today: Support- 1.0570 and 1.0500 Resistance- 1.0650 and 1.0700.

GOLD: The precious metal trades steady above 1920. If the bullish momentum continues, then the next upside level is to watch 1930 and 1935. On the downside, any meaningful pullback now seems to find some support near the 1908 zones, below which the slide could further get extended towards the 1900 and 1895 regions.



The important levels to watch for today: Support- 1908 and 1898 Resistance- 1930 and 1935.

Quote of the day – “When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.” – Phil Town.
Read more - https://gulfbrokers.com/en/daily-market-report-633

 

[syamfx2020]

Shares of the shipping giant FedEx (NYSE: FDX) surged more than 11% in extended trading on Thursday after the company posted robust quarterly earnings that beat expectations and raised its fiscal 2023 earnings outlook to $13.80 to $14.40 per share. However, the revenue for the quarter was $22.2 billion, which missed the expected revenue of $22.74 billion.

• Earnings per share (EPS): $3.41 vs. $2.71 expected
• Revenue: $22.2 billion vs. $22.74 billion expected

"I am proud of the FedEx team, who delivered outstanding service to customers during our peak season while also making solid progress on our transformation initiatives, we’ve continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year,” FedEx CEO, Raj Subramaniam said.

EQUITIES

Wall Street finished in positive territory on Thursday after the biggest US lenders JPMorgan, Morgan Stanley and other big banks agreed to contribute USD 30 billion in deposits to First Republic Bank. The markets also received additional buying pressure following the release of stronger-than-expected US housing and jobless claims data. The US weekly jobless claims data showed the unemployment claims fell to 192,000 in the week ended March 11 from 212,000.

OIL

Crude oil prices slightly recovered from the early weekly losses, but oil prices are set to end the week with a loss, largely driven by concern about the economic outlook this year in light of recent bank failures and uncertainty at Credit Suisse. On the other hand, the EIA released a weekly report showing that US crude stockpiles showed a larger build-up than expected.

CURRENCIES

In the currency market, EURUSD recovered back to above 01.0650 supported by the recent improvement in risk sentiment and a softer dollar. During the previous session, the currency pair traded on a volatile note after ECB hiked the rate of Interest by 50 BPS to 3.50% from 3% earlier and the central bank said the Euro Area banking sector was resilient, while the future rate path would depend on incoming data.

GOLD

The safe haven metal sustains the upward trend and investors are expecting that the metal will cross the psychological barrier of $2,000 per ounce in the coming months. However, today gold traders and investors should closely monitor the release of the Michigan US Consumer Sentiment Index and industrial production numbers.

Economic Outlook

On the data front, US building permits increased 13.80% to 1,524M in February and housing starts, a measure of new home construction, rose by 9.8% to 1,450,000 units, the highest in five months, and way above market forecasts of 1.31 million.

Moving ahead today, the important events to watch:

US – Industrial Production: GMT – 13:15

Eurozone – Michigan consumer sentiment: GMT – 14:00

Technical Outlook and Review

EURUSD: For today, 1.0620 is the immediate support level, followed by 1.0600. If the pair breaks below 1.0600, the slump will quickly extend toward the 1.0570 mark. On the flip side, the bullish breakout of 1.0670 is likely to push the index into a new trading zone, which may offer further buying opportunities until 1.0700/10.



The important levels to watch for today: Support- 1.0620 and 1.0590 Resistance- 1.0680 and 1.0700.

GOLD: For today, the immediate resistance for gold near $1938 break this and close above this resistance level then expects the market to zoom up to $1943/45. On the other hand, if it breaks below the $1926 level, will open the doors to $1922 and $1918 levels.



The important levels to watch for today: Support- 1926 and 1918 Resistance- 1938 and 1943.

Quote of the day – Beginners focus on analysis, but professionals operate in a three-dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. Alexander Elder

 

[syamfx2020]

Rattled global stock markets have ended another brutal week as the banking crisis stoked fears of broader weakness in the global economy. There is a wide range of views as some feel that the chances of a big banking crisis and severe market decline have increased significantly while others worry about a looming recession.

Attention this week will be on planned central banks meetings. Major central banks, such as the US Federal Reserve, Bank of England and Swiss National Bank, are to hold monetary policy meetings this week. But the most important, as always, is America's central bank, the Federal Reserve. The central bank is expected to raise rates by another 25 bps despite the recent turmoil in the banking sector. The FED decision tends to lead to significant moves for currencies, commodities, and Indices.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Nike, GameStop, Accenture and Chewy.

GOLD

Gold prices jumped to the highest level since April 2022 intensifying fears of the coming economic slowdown and driving investors toward the safe-haven metal. The precious metal is likely to remain supported over the prevailing risk-off sentiment in markets as the gold price is considered an attractive investment during times of economic uncertainty. Considering the strong bullish pressure, this week gold investors should closely monitor Wednesday’s decision by the Federal Reserve on interest rates.



The main trend is up according to the daily swing chart. A trade through $2000 will signal a resumption of the uptrend. The main trend will change to down on a move through $1955. On the upside, the first major resistance is near the $2030 level. The next main resistance could be near the $2050 level, above which the price could start a steady increase towards the 2070/80 level. On the downside, immediate support is near the $1968 level. The next major support is near the $1,955 level, below which the price might decline towards the $1,930 support level in the near term.

DOLLAR INDEX

The dollar was sold off heavily last week, and until the situation around the US banking crisis is solved, selling in the markets will continue, and the dollar will not be able to resume growth. In general, the situation for the dollar is still unfavourable. For the dollar this week, the main event should unfold on Wednesday, when Federal Reserve will offer new benchmarks to the market.



Technically the overall sentiment remains bearish. However, a fresh demand for Dow can be anticipated once the pair rises above the 104.30 key level. In this case, the pair could re-test hourly 200-SMA located near the 104.60 level. On the other hand, the next immediate support prevails at 103.30, a further breakout of 103.30 can lead the index towards 103 and 102.70 levels.

EURUSD

EUR/USD continues to fluctuate within the range of 1.0520/1.0700. Although there was a slight rebound, it is clear that traders remain undecided on where to go, which attracts abundant attention from speculators. During the last week, the European Central Bank raised interest rates by 50 basis points as promised. For this week, the main drivers for the Euro remain the movement of the US dollar and PMI data from Germany and the Eurozone.



This week, the key resistance is located above 1.0750, a break above this level will confirm a possible move to 1.0800 and 1.0830. On the downside, any meaningful pullback now seems to find some support near the 1.0600 zones, below which the slide could further get extended towards the 1.0560 and 1.0530/10 regions.

DOW JONES

The previous week ended with another wave of selling in stock markets. A new wave of selling was initiated after shares of Credit Suisse hit a new record low as the bank's top shareholder ruled out any further liquidity injections. Dow Jones and other US indices extends the losses and pointed to a negative start to a new week. Moving ahead, Dow is expected to remain under pressure this week by the banking sector turmoil as investors reduce their risk exposure.



Technically the overall momentum remains bearish. For this week, the key support remains near 31,400. In case it breaks below this level, it will head towards the next support level which is located at nearly 31,000 then 30,600. On the flip side, the first resistance at 31,900/32,050 any break above this level will open 32,500 minimum.

Read more - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-72

 

[syamfx2020]

Footwear and athletic apparel giant Nike (NYSE: NKE) is set to report financial results for the last quarter today, March 21st, after the market close. The company is expected to post quarterly earnings of $0.55 per share and revenues are expected to be $11.47 billion.

$NKE technical outlook

Technically the overall momentum remains mixed. The daily chart shows that the $NKE stock price has been in a consolidation in the past couple of weeks after the recent recovery. Nevertheless, buying it here makes sense especially if the intention is to hold it for long-term because we cannot rule out a situation where the stock will eventually bounce back to above $150. On the downside, in the short-term $115/14 is the crucial support area to watch. If the stock breaks below this area, the slump will quickly extend toward the $102/00 mark.



EQUITIES

US futures extended the gains on Wednesday as Investors are starting to hope the Fed will slow its pace of interest-rate increases. Meanwhile, Tesla CEO Elon Musk called on the US Federal Reserve to reduce the interest rates by at least 50 bps in its meeting on Wednesday. Moving ahead, Today’s North American session is likely to see a slightly softer open with today’s focus set to be on this afternoon's US existing home sales numbers.

OIL

Crude oil prices managed to reverse their early weekly losses as the oil prices are trying to switch to the bullish side, but there are still a couple of obstacles which stand in the way higher. Considering the recent rebound the oil investors should closely monitor the release of weekly crude inventory reports and the comments from the FED chair Powell on Wednesday.

CURRENCIES

In the currency market, AUDUSD remains under pressure following the release of RBA minutes. "Members agreed to reconsider the case for a pause at the following meeting, recognizing that pausing would allow additional time to reassess the outlook for the economy," – the minutes said. Meanwhile, the Euro extended the gains against the dollar and Pound supported by hawkish comments from ECB policymakers.

GOLD

Gold price volatility remains elevated ahead of the Fed decision. Gold price is currently trading at $1968, the metal struggling to regain upside momentum as investors await the Fed rate hike decision. However, the metal will rebound back to the $2000 mark if the Fed decides to pause the rate hike on Wednesday.

Economic Outlook

On the data front, Germany and Eurozone reported weaker-than-expected economic sentiment data. Economic Sentiment for the Euro Area slipped by 19.7 points to 10 in March and economic Sentiment for Germany fell by 15.1 points from a month earlier to 13 in March.

Moving ahead today, the important events to watch:

Canada – CPI: GMT – 12:30

US – Existing homes sales: GMT – 14:00

Technical Outlook and Review

EURUSD: The currency pair trading above the 1.0740 area during the European session, if the bullish momentum continues the next upside levels to watch the 1.0760 and 1.0800 zone. On the flip side, the immediate support is at 1.0710.



The important levels to watch for today: Support- 1.0710 and 1.0680 Resistance- 1.0760 and 1.0780.

GOLD: For today, $1956 is a crucial support zone to watch. In case it breaks below this level, it will head towards the next support level which is located near $1944/42. On the upper side, $1975 will act as an immediate while $1986 will be a critical resistance zone because, above this, bulls are likely to dominate.



The important levels to watch for today: Support- 1960 and 1955 Resistance- 1975 and 1986.

Quote of the day – “Patterns don't work 100% of the time. But they are still critical because they help you define your risk. If you ignore patterns and focus on hunches, feelings, and hot tips, just forget about achieving consistency.” -Ifan Wei.
Read more - https://gulfbrokers.com/en/daily-market-report-635

 

[syamfx2020]

Today everyone is eyeing the outcome of the US Federal Open Market Committee (FOMC) meeting, especially after the collapse of Silicon Valley Bank, Signature Bank and latterly the problems around First Republic Bank. The Fed has hiked 4 consecutive times by 75bps, then stepped down to 50bps, and the last hike was just 25bps. The FED Monetary Policy Statement is set to be released at 18.00 GMT. Along with this release will see the FED chair Jerome Powell Conference 30 minutes after at 18:30.

The central bank is expected to raise interest rates by another 25 basis points today. If it happens, then it will be the 9th consecutive rate hike by the US Fed. Investors and traders should also closely monitor the comments from FED chair Jerome Powell today because there are expectations that the Federal Reserve might put future rate hikes on hold.

EQUITIES

Wall Street ended Tuesday firmly in positive territory supported by positive comments from US Treasury Secretary Janet Yellen. Yellen said the government would be willing to take further action to protect deposits. Meanwhile, today Morning the US stock futures struggled to regain upside momentum as investors grew more cautious ahead of the FED meeting.

On the earnings front, Chewy and Petco are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures slightly reversed from the previous session highs after the latest API data pointed to another week of rising inventories in the US. The API data showed the US crude inventories increased by 3.26 million barrels last week, compared to estimates of a 1.448-million-barrel draw.

CURRENCIES

In the currency market, the euro eased after hitting fresh weekly highs against the greenback. The Greenback, in terms of the US Dollar Index (DXY), trades flat, however, today could see increased volatility spikes after the release of the FED decision. The overall momentum remains bearish after the currency pair experienced a sharp slide in the last 4 sessions.

GOLD

Gold prices are undergoing a period of consolidation after crossing the psychological barrier of $2000 level on Monday. The recent recovery in risk sentiment has fuelled a reversal in haven flows with gold prices correcting almost $70 in the last 2 trading sessions. Moving ahead, the traders should closely monitor the FED outcome today to get a clear picture of the metal's long-term direction.

Economic Outlook

On the data front, UK inflation unexpectedly accelerated in February. The UK CPI edged higher to 10.4% in Feb. compared to the expectations of 9.9%. The surprise jump in inflation comes after food and non-alcoholic drinks prices rose by 18% year-on-year last month.

Moving ahead today, the important events to watch:

US – EIA crude inventories: GMT – 14:30

US – FOMC interest rate decision and statement: GMT – 18:00

Technical Outlook and Review

EURUSD: The currency pair needs to stay above 1.0750; otherwise. 1.0700 and 1.0680 may be visible soon. On the upper side, 1.0800 is the key resistance zones to watch, if the pair breaks and close above this area then the next resistance area to watch is around 1.0850/70.



The important levels to watch for today: Support- 1.0710 and 1.0680 Resistance- 1.0800 and 1.0850.

GOLD: From a technical perspective, the 1930 area of confluence has recently been held as a firm support, failure to defend the mentioned support levels has the potential to drag the pair further towards the 1920 and 1908 support zone. On the upper side, in case the pair manages to settle above 1960, it will regain upside momentum and head towards the next resistance level at 1975/82.



The important levels to watch for today: Support- 1930 and 1918 Resistance- 1955 and 1960.

Quote of the day – “The easiest way to manage your money is to take it one step at a time and not worry about being perfect.” Ramit Sethi.
Read more - https://gulfbrokers.com/en/daily-market-report-636

 

[syamfx2020]

Gold prices struggling to regain strong upside momentum following the recent consolidation while the price of Bitcoin remains steady ahead of the most anticipated Federal Reserve’s interest rate decision and statement. The Federal Reserve already began the two-day meeting on Tuesday with expectations mounting that they will lift rates by at least 25 basis points.

Gold price started this week's trading session on a strong bullish note and the metal price crossed the US$2,000 per ounce mark early in Monday's trading session. But we witnessed a strong reversal from the fresh monthly high of $2009 to $1935 after the recent recovery in risk sentiment. Moving ahead, again the trend of the metal would largely depend on the trend of the dollar index and FED chair Powell's speech.



Technically, the overall momentum remains mixed after the previous session's strong bearish move. In the short term, if the metal breaks below $1930 it would open doors toward the next key support area of $1922/20 and below that 1912 is next. On the upper side, $1950 will act as an immediate while $1956 will be a critical resistance zone. If the metal manages to settle above $1956, it will gain upside momentum and head towards the next resistance level at $1968 and $1975.

Bitcoin, the largest digital coin by market value is enjoying the ride. The Bitcoin price hit new multi-month highs on Monday after a V-shaped rebound from the 200-day moving average. The strong bullish move started after the crucial $25,000 resistance level was broken. As of this writing, BTCUSD trades above the $28,000 level.



Technically, the medium-term trend is very supportive, and the pair has room to climb If the US Federal Reserve is going to turn hawkish today despite banking crisis fears we could see an extension to the weakness in the crypto pair. On the upper side, considering heavy volatility there are chances that Bitcoin can easily rise towards the next key resistance of 29,400 then the 30,000 area. On the downside, any meaningful pullback now seems to find some support near the 27,800 and then 27,400/200 zones, below which the slide could further get extended towards the 26,600/500 zones.

Read more here - https://gulfbrokers.com/en/gold-and-bitcoin-price-technical-outlook-ahead-of-fed-decision

 

[syamfx2020]

GBPUSD retreats back to below 1.2300 as investors grew more cautious about placing aggressive bids ahead of the Bank of England interest rate decision. The central bank expected to increase the Bank Rate by 25 bps, taking them to 4.25% after Wednesday's surprise jump in inflation. During this week the British Pound preserved its bullish momentum against the US dollar and advanced toward 1.2340 today early morning session.

For today, the next nearest support level for GBPUSD is located at 1.2260. In case it breaks below this level, it will head towards the next support level which is located near 1.2240 then 1.2220. On the upper side, 1.2340 remains the key resistance area to watch, any break and closes above this level the next levels to watch are 1.2370 and 1.2400.

EQUITIES

US stock futures remain under pressure after the US Federal Reserve raised its main rate by a quarter of a percentage point on Wednesday. Federal Reserve Chairman Jerome Powell said that the economy will not work for anyone as long as higher inflation remains, and he reiterated the central bank's sole commitment to quelling inflation despite other emerging economic concerns.

On the earnings front, Accenture and General Mills are amongst those reporting the last quarter's financial results today.

OIL

Crude oil futures struggling to break above the previous session highs due to mounting fears of a global economic slowdown as the Federal Reserve pushed back against bets for interest rate cuts this year. On the other hand, the EIA crude inventory data showed that the US crude oil inventories rose by 1.1170 million barrels in the week ended March 17, against market expectations of a 1.565 million barrel draw.

CURRENCIES

In the currency market, the Euro reversed from the fresh monthly highs. As of this writing, the EURUSD trades below 1.0870. The US Dollar Index, which measures the greenback’s value against the basket of six major currencies has recently reached its lowest level in six weeks, at 102.61, as investors anticipate no further room for rate hikes from the Federal Reserve.

GOLD

The safe haven metal rose back to above $1980 after the FED chair Powell projected a weak economic outlook for the rest of 2023 and a more cautious path for the fund's rate than Chair Powell had indicated was likely before the recent banking turmoil. Moving ahead to the North American session, the gold traders should closely monitor the release of BOE rate decision and US weekly jobless claims.

Economic Outlook

On the data front, the Swiss central bank increases key interest rate significantly despite bank tremors. The central bank increased its policy rate by 50 bps to 1.5% and said that additional hikes could not be ruled out. The SNB raised its inflation expectation from 2.4 percent to 2.6 percent this year, and from 1.8 percent to 2.0 percent for 2024.

SNB's chairman Jordan said it’s right to hike rates in this situation. The rate hike won't have a negative effect on the situation.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision: GMT – 12:00

US – Jobless claims: GMT – 12:30

Technical Outlook and Review

EURUSD: For today, 1.0850 is the immediate support level, followed by 1.0830. If the pair breaks below 1.0830, the slump will quickly extend toward the 1.0800 and 1.0780 marks. On the flip side, the immediate resistance near 1.0900 the 1.0930.



The important levels to watch for today: Support- 1.0850 and 1.0830 Resistance- 1.0900 and 1.0930.

GOLD: The precious metal needs a clear break of $1986 to move further upside to $2000/2009. On the flip side, a breakdown through $1972 would negate that bias and suggest a test of the $1960/58 support region again.



The important levels to watch for today: Support- 1972 and 1955 Resistance- 1986 and 1995.

Quote of the day – “Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” Dave Ramsey.
Read more - https://gulfbrokers.com/en/daily-market-report-637

 

[syamfx2020]

British retail sales rebounded rapidly in February. The Office for National Statistics has released UK retail sales for February. The data showed that retail sales in the UK unexpectedly increased by 1.2% in February, compared to forecasts of a 0.2% gain. While the same month a year earlier sales volumes fell by 3.5% but the figure was well above the expectations for an increase of 0.2%. Core retail sales increased by 1.5% versus 0.9% in January.

GBPUSD hardly moved higher post retail sales data. As of this writing, the currency pair dropped to below 1.2240. Now the GBP traders should closely monitor the release of the latest UK PMI data. During the previous session, the pound ended slightly lower after the pair failed to break above the key resistance of 1.2340 following the BOE decision. The Bank of England raised the bank rate by 25bps to 4.25% as expected, and signalled further increases could be necessary.

EQUITIES

Wall Street ended mixed on Thursday and global stocks opened slightly lower on Friday as investors are keeping a close watch on the global central bank's actions as they try to assess the impact of aggressive rate hikes on global growth.

OIL

Crude oil prices struggling to find strong upside momentum amid lingering concerns over the aggressive central bank tightening to bring inflation back under control. The market is likely to encounter a price breakout if it continues to fluctuate in a tight range. However, as of this writing, the oil prices slightly recovered from the weekly lows. On the other hand, US Energy Secretary Jennifer Granholm told lawmakers that it will be “difficult” to refill strategic oil reserves this year, prompting speculations that the US government would only start buying at even lower prices.

CURRENCIES

In the currency market, the Euro's uptrend against the USD is losing momentum after the strong rally, the currency pair retreats back to below 1.0680. The Japanese Yen remains the strongest currency pair of this week. The Yen extend gains against all other currencies Friday after the recent data showing Japan’s annual inflation rate retreated sharply from 41-year highs.

GOLD

The safe haven metal bounces back to above $2000 on Thursday as Investors have been buying into the safe-haven currency as global market sentiment remains cautious. While the metal retreats back to below $1885 Friday Morning. Moving ahead to the North American session, the gold traders should closely monitor the release of US Durable Goods Orders data.

Economic Outlook

On the data front, the US initial jobless claims in the US fell by 1,000 to 191,000 on a seasonally adjusted basis last week, reaching a three-week low and below the forecasted number of 198,000. The new home sales in the US increased 1.1% month-over-month to a seasonally adjusted annualised rate of 640K in February of 2023, the highest level since August last year but below forecasts of 650K.

Moving ahead today, the important events to watch:

US – Durable goods orders: GMT – 12:30

US – Manufacturing PMI: GMT – 13:45

Technical Outlook and Review

EURUSD: Technically the overall momentum remains bearish. For today, the first nearest support level is located at 1.0750. In case it breaks below this level, it will head towards the next support level which is located near 1.0710 and 1.0690. However, a fresh demand for the pair can be anticipated again once the Euro rises above the 1.0840 resistance.



The important levels to watch for today: Support- 1.0750 and 1.0710 Resistance- 1.0800 and 1.0840.

GOLD: In the short-term perceptive, the current price action signals suggest that the bullish trend remains intact. If the bullish momentum continues the next upside level to watch is $2000/10 then $2030/48. On the downside, any meaningful pullback now seems to find some support near the $1965 zones, below which the slide could extend further towards the $1958/44 regions.



The important levels to watch for today: Support- 1974 and 1965 Resistance- 1995 and 2002.

Quote of the day – "Stocks are simple. All you do is buy shares in a great business for less than the business is intrinsically worth, with the management of the highest integrity and ability. Then you own those shares forever." - Warren Buffet.
Read more - https://gulfbrokers.com/en/daily-market-report-638

 

[syamfx2020]

US stock indices and commodities opened modestly higher this week as risk sentiment improved. Last week the US Federal Reserve announced a quarter-point hike to the Fed’s benchmark rate but also acknowledged that the central bank considered pausing the increases because of instability in the banking sector. At the same time, the Bank of England, Swiss National Bank and European Central Bank signalled that they would continue to raise rates to crush inflation.

Moving ahead to this week, the important economic events to watch are the series of inflation numbers from Germany and the Eurozone, the US GDP, the PCE price index and consumer confidence data.

On the earnings front, the companies scheduled to release their last quarter financial results this week will be Lululemon, PVH, Micron and BioNTech.

GOLD

Gold prices have been under the spotlight throughout this month after the metal bounced back strongly from its previous month's lows. However, in the last few days, the metal remains undecided as to which way its next directional break will be. On Friday, the safe haven metal retreated back to below $1980 as fears surrounding the banking sector subsided towards the end of the week.



For this week, $2009/10 remains the key resistance to watch, the bullish breakout of $2010 will likely push the gold into a new trading zone, which may offer further buying opportunities until $2018 then $2030. On the downside, $1965 is the immediate support level, followed by $1958. If the metal breaks below $1958, the slump will quickly extend toward the $1945/40 mark.

DOLLAR INDEX

The greenback started the new week on a positive note after the St. Louis Fed President James Bullard indicated Friday that the US central bank is nowhere near done with its tightening stance and it will have to raise rates higher. While It has been a rough month for the dollar as markets bet the Federal Reserve will halt its raising of interest rates due to the sudden collapse of Silicon Valley Bank. This week in the US, the main event of interest is US GDP data and the PCE expenditure price index.



DXY is trading steadily above the 103 area but seemed limited in its attempts to move higher in the short term. This week's resistance for the DXY appears to be around 103.35. If the price break and closes above 103.40, the next upside level to watch is 103.60 then 103.80. On the downside, if the greenback breaks and close below the 103 area again the next immediate downside area is to watch 102.70 and 102.40.

EURUSD

EUR/USD price action remained volatile, the pair ended lower on Friday after staging a strong rally following the shares of German banking giant Deutsche Bank plunging more than 12%. The stock tanked after the bank said it would redeem $1.5 billion in a set of tier 2 notes due in 2028 and as its credit default swaps surged to the highest. While ECB President Christine Lagarde tried to ease concerns by telling EU leaders the euro area banking sector was resilient and that the central bank toolkit was equipped to provide liquidity to the financial system if needed. This week, again the movement of the US dollar and the latest inflation numbers from Germany and the Eurozone is likely to significantly affect the currency pair.



For Euro this week, the first key support level is located at 1.0700. In case the pair breaks below this level, it will head towards the next support level which is located at nearly 1.0660. On the flip side, a move above 1.0840 again will push the pair into a new trading zone, which may offer further buying opportunities until the 1.0900 and 1.0940 zones.

DOW JONES

Dow Jones and other US indices ended a volatile week slightly higher on Friday boosted by positive comments from Treasury Secretary Janet Yellen and Fed’s Bullard but the banking sector was under pressure. Yellen announced Friday she called an unscheduled meeting of the Financial Stability Oversight Council or FSOC which was created in the wake of the 2008 financial crisis to help the government combat threats to financial stability. For the Dow, the main attraction for this week is Investors waiting for the US GDP and PCE inflation data, which could trigger volatility in the market.



This week, the immediate resistance is located for the index around 32,500, a break above this level will confirm a possible move to 32,800 and 33,000. On the downside, if the bearish momentum continues bears will probably try to achieve the previously tested support at 31,600/400.

Check out the detailed analysis with charts here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-73

 

[syamfx2020]

Shares of one of the world’s largest semiconductor chip manufacturers, Micron Technology (NASDAQ: MU) traded with a bid tone for the entire last week, the stock gained almost 9% last week. Micron Technology was founded in 1978 as a joint venture between Intel Corporation and Advanced Memory Systems. The company specialized in memory and storage solutions for both consumers and enterprise applications. The memory-chip maker trades on the NASDAQ under the ticker MU and Micron’s market capitalization currently sits at $66.34 billion.

Micron is scheduled to report the second-quarter financial report this week, which is due out after the close on Tuesday, March 28. The company is expected to post a quarterly loss of $0.62 per share and revenues are expected to be $3.78 billion.

$MU technical outlook​

The stock is set to bounce further over the long term If the company fundamentals trend in a positive direction and overall market sentiment improves. Micron stock has now formed a perfect double bottom and built a support zone at $48.43, and as long it can remain above this zone, we can expect further upside move to $70/72. On the downside side, the bears need to see a confirmed break below the crucial support $48 area to objectively tell us that the recovery has ended. And for the short term, the immediate support at $58.50 followed by $57.

Read more here - https://gulfbrokers.com/en/stock-to-watch-this-week-micron