09/03/2023 Daily Reports
Support Level: 1.0530 - 1.0470 - 1.0350 Resistance Level: 1.0700 - 1.0800 - 1.0900
EUR/USD
- EUR/USD remains unchanged as Fed Chair Jerome Powell testifies before the US Congress. Meanwhile, US equities continued to fluctuate, portraying a mixed sentiment, while the US Dollar turned positive. At the time of writing, the EUR/USD is trading at 1.0547.
- The EUR/USD has failed to gain traction either way after US economic data backed the latest commentaries by Jerome Powell. Although January’s JOLTs report showed a decrease In openings at 10.8M, it exceeded estimates of 10.5M.
- Earlier, the February US ADP Employment Change report revealed that the US private sector added 242,000 jobs, more than the expected 200,000. That said, figures from both reports reinforced what Federal Reserve officials have commented about a tight labor market, which would warrant further tightening by the Federal Reserve. That could weigh on the Euro (EUR); therefore, a further downside in the EUR/USD is expected.
- The EUR/USD pair is trading near the 1.0547, unchanged for the day with bearish stance in daily chart. The pair still stabilized below 20 and 50 SMA, indicates bearish strength. Meanwhile, the 20 SMA started turning flat but continued developing below 50 SMA, suggests bears not exhausted yet. On upside, the immediate resistance is 1.0700, break above this level will extend the advance to 1.0800.
- Technical readings in the daily chart support the bearish stance. The RSI indicator stabilizes around 41. The Momentum indicator holds below the midline, indicating downward potentials. On downside, the immediate support is 1.0530 and below this level will open the gate to 1.0470.
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Support Level: 1.1800 - 1.1640 - 1.1400 Resistance Level: 1.1920 - 1.2065 - 1.2150
GBP/USD
- GBP/USD stays around 1.1840s, following hawkish remarks by the US Fed Chair Jerome Powell. Powell’s two-day testimony before the US Congress will conclude on Wednesday at the US House of Representatives, with market participants expecting him to remain hawkish. Therefore, the GBP/USD is exchanging hands at 1.1843, gaining 0.10%.
- The GBP/USD will likely remain at familiar levels, as the market has priced in Powell’s hawkishness on Tuesday. On Wednesday, labor market data revealed in the United States (US) economic docket reinforced the Federal Reserve’s view about the tightness of the labor market. February’s ADP report revealed that the US private sector added 242,000 jobs, more than the expected 200,000.
- Later, job openings for January in the United States dropped less than estimates, as shown by the JOLTS report. Job openings, a measure of labor demand, decreased to 10.8M. However, data came above forecasts of 10.5M. Given the backdrop, Jerome Powell and Co. could justify higher rates, which could be confirmed by next Friday’s US Nonfarm Payrolls report.
- The GBP/USD offers bearish stance in daily chart. Cable still stabilizes below 20 and 50 SMA, indicating bearish strength in short term. Meanwhile, the 20 SMA continued accelerating south and heading towards longer ones, suggests bears not exhausted yet. On upside, The immediate resistance is 1.1920 with a break above it exposing to 1.2065.
- Technical readings in the daily chart support the bearish stances. RSI indicator stabilizes around 39, while the Momentum indicator stabilizes below the midline, suggesting downward potentials. On downside, the immediate support is 1.1800, unable to defend this level will resume the decline to 1.1640.
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Support Level: 1805 - 1776 - 1724 Resistance Level: 1858 - 1891 - 1918
XAU/USD
- Gold prices continued to move near $1,816 following the release of US employment data that surpassed expectations. XAU/USD dropped toward $1,810 and managed to remain above. The yellow metal is trading $35 below the level it had a day ago, hit by Fed Chair Powell’s testimony.
- ADP reported on Tuesday that private sector employment rose by 242K in February, above the 200K expected. January’s numbers were revised higher from 106K to 119K. ADP’s Chief Economist commented that they are seeing robust hiring but warned pay growth “is still quite elevated”.
- The Dollar rose marginally after the report, while US yields retreat. Despite the recovery in Treasuries, XAU/USD remained steady. Dollar’s strength and risk aversion are keeping the upside limited, while at the same time, leave the metal vulnerable to more losses.
- Gold price stabilized around 1816, unchanged for the day and bearish in the daily chart. The gold price stabilized below 20 and 50 SMA, suggesting bearish strength in short term. Meanwhile, the 20 SMA continued accelerating south and heading towards 200 SMA, indicating bears not exhausted yet. On upside, the immediate resistance is 1858, break above this level will open the gate for more advance to 1891 area.
- From a technical perspective, the RSI indicator holds below the mid-line and stabilizes around 39, on a bearish strength. The Momentum indicator hold just below the midline, suggests downward potentials. On downside, the immediate support is 1805, below this area may resume the decline to 1776.
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Support Level: 136.50 – 135.20 – 134.00 Resistance Level: : 138.20 – 140.00 – 142.20
USD/JPY
- USD/JPY is flat near 137.20 the figure and within the day’s range of between 136.47 and 137.91 while the greenback dips modestly from three-month highs reached earlier on Wednesday following Federal Reserve Chairman Jerome Powell on Tuesday.
- The US Dollar index, DXY, was reaching 105.88, the highest since Dec. 1 as the Fed chair surprised markets with a more hawkish rate outlook. Powell said that the Fed will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation.
- The fundamental backdrop, however, still supports prospects for an extension of the USD/JPY pair’s recent upward trajectory witnessed over the past month or so. Investors seem convinced that the BoJ will maintain the ultra-loose policy settings. It is worth mentioning that the incoming BoJ Governor Kazuo Ueda last week stressed the need to maintain the ultra-loose policy to support the fragile economy. This marks a big divergence in comparison to the Fed’s hawkish stance and validates the near-term positive outlook for the major.
- The USD/JPY pair stabilized around 137.20, unchanged for the day and bullish in the daily chart. The price stabilizes above 20 and 50 SMA, suggests bullish strength in short term. Meanwhile, 20 SMA continued accelerating north and heading towards longer ones, indicating bulls not exhausted. On upside, overcome 138.20 may encourage bulls to challenge 140.00, break above that level will open the gate to 142.20.
- Technical indicators suggest the bullish strength. RSI stabilizes around 67, while the Momentum indicator stabilizes in the positive territory, suggests upward potentials. On downside, the immediate support is 136.50, break below this level will open the gate to 135.20 area.
Support Level: 32530 - 32200 - 32000 Resistance Level: 32940 - 33270 - 33590
DJI
- DJI still under the sell pressure after Powell testifies before the US Congress on Thursday, plunged from intraday high 32940 area to low 32620. It hold near the bottom and ended the day around 32690, down for the day and indicates bearish sign in the hourly chart. Right now market is standing below 20 and 50 SMA, suggests bearish strength. Meanwhile, 20 SMA continued accelerating south and developing far below longer ones, suggests bears not exhausted yet. On upside, overcome 32940 may encourage bulls to challenge 33270, break above that level will open the gate to 33590.
- Technical indicators suggest the bearish movement. RSI stabilizes around 29, while the Momentum indicator stabilizes in negative territory, suggests bearish potentials. On downside, the immediately support is 32530, break below this level will open the gate for more decline to 32200 area.
Support Level: 82.00 – 80.30 – 79.00 Resistance Level: 83.60 – 85.00 – 86.80
BRENT
- Brent still under the sell pressure on Wednesday post Fed Powell’s speech, plunged from intraday high 83.60 area to near 82.00. It recovered modestly and ended the day around 82.50. The price currently stabilizes below 20 and 50 SMA, suggests bearish strength in the hourly chart. Meanwhile, the 20 SMA started turning south and heading towards longer ones, indicates bears not exhausted yet. On upside, overcome 83.60 may encourage bulls to challenge 85.00, break above that level will open the gate to 86.80.
- Technical indicators also suggest bearish movement, hovering below the midline. RSI drops to 37, while the Momentum indicator stabilizes in negative territory, suggests downward potentials. On downside, the immediately support is 82.00, break below this level will open the gate for more decline to 80.30 area.
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