14/02/2023 Daily Reports
Support Level: 1.0650 - 1.0580 - 1.0480 Resistance Level: 1.0800 - 1.0930 - 1.1000
EUR/USD
- EUR/USD has been testing a critical high in the midday session on Wall Street following what had been a positive start for the day for the US Dollar. At the time of writing, EUR/USD is trading up high for the day at 1.0725 and has gained 0.4% so far following a rally from the Asian lows of 1.0655.
- Tensions between the US and China weighed on the market mood at the weekly opening, with the Greenback making the most out of it. However, a better market mood during European trading hours pushed the US Dollar into the red across the FX board.
- Still, the absence of relevant macroeconomic releases and the upcoming US Consumer Price Index update limited the intraday US Dollar slide. Market players await the release of the January US CPI. Inflation is foreseen raising at an annualized pace of 6.2%, easing from 6.5% YoY in December. The core reading, excluding volatile food and energy prices, is expected at 5.5%. Although the US Federal Reserve does not base its decision on this particular figure, it has a high impact on financial markets, as it reflects price pressures in the country.
- The EUR/USD pair is trading near the 1.0725, up 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 south and heading towards longer ones, suggests bears not exhausted yet. On upside, the immediate resistance is 1.0800, break above this level will extend the advance to 1.0930.
- Technical readings in the daily chart support the bearish stance. The RSI indicator stabilizes around 47. The Momentum indicator holds below the midline, indicating downward potentials. On downside, the immediate support is 1.0650 and below this level will open the gate to 1.0580.
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Support Level: 1.12020 - 1.1960 - 1.1840 Resistance Level: 1.2200 - 1.2270 - 1.2400
GBP/USD
- GBP/USD has been on a tear as it pulls away from the start of the day’s trapped shorts that were seeking a break below 1.2050 for the initial balance for the week. At the time of writing, GBP/USD is trading at 1.2140 and up 0.8% on the day.
- A modest recovery in the global risk sentiment – as depicted by a turnaround in the equity markets – exerts some downward pressure on the safe-haven buck. Apart from this, a softer tone around the US Treasury bond yields further undermines the Greenback, which, in turn, is seen as a key factor lending some support to the GBP/USD pair.
- Apart from this, a dovish assessment of the Bank of England (BoE) decision last week warrants some caution before placing aggressive bullish bets around the GBP/USD pair. In the absence of any relevant market-moving economic releases, traders now look to Fed Governor Michelle Bowman’s speech for some impetus ahead of the UK jobs data on Tuesday.
- The GBP/USD offers bearish stance in daily chart. Cable 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 1.2200 with a break above it exposing to 1.2270.
- Technical readings in the daily chart support the bearish stances. RSI indicator stabilizes around 49, while the Momentum indicator stabilizes below the midline, suggesting downward potentials. On downside, the immediate support is 1.2020, unable to defend this level will resume the decline to 1.1940.
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Support Level: 1850 - 1830 - 1800 Resistance Level: 1891 - 1920 - 1960
XAU/USD
- Gold price retreated from last Friday’s highs of $1872.22 and dropped toward the $1850 area on Monday despite the US Dollar fall, ahead of a vital inflation report from the US. Additionally, US Treasury yields, albeit edging down, remain at around five-week highs. At the time of writing, the XAU/USD is trading at $1852.88.
- XAU/USD remains pressured, while the US Dollar Index, a measure of the buck’s value vs. a basket of peers, drops 0.18%, down at 103.391, undermined by the US 10-year Treasury bond yield, with the 10-year benchmark not dropping one and a half bps to 3.726%.
- In the meantime, Fed hawkish commentary continued with the Fed Governor Michell Bownman, who said that the Fed needs to continue to raise rates to get the FFR to a sufficiently restrictive level, as the US central bank battles high inflationary pressures. Of late, the US Federal Reserve of New York revealed inflation expectations for the year hold steady at 5%. For a three-year horizon, the poll showed that inflation would stand at 2.7%, down from December 2.9%, while for a five-year span, it was projected at 2.5%, vs. 2.4 in the prior month.
- Gold price stabilized around 1854, down for the day and neutral to bearish in the daily chart. The gold price stabilized below 20 SMA, suggesting bearish strength in short term. Meanwhile, the 20 SMA started turning south and heading towards longer ones, indicating bears not exhausted yet. On upside, the immediate resistance is 1891, break above this level will open the gate for more advance to 1920 area.
- From a technical perspective, the RSI indicator holds below the mid-line and stabilizes around 42, on a bearish strength. The Momentum indicator hold below the midline, suggests downward potentials. On downside, the immediate support is 1850, below this area may resume the decline to 1830.
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Support Level: 131.00 - 129.80 - 128.00 Resistance Level: : 133.00 - 134.70 - 137.40
USD/JPY
- The USD/JPY climbs as the New York session progresses, up by 0.77%, hitting a new six-week high at 132.90. Nevertheless, the major failed to hold to its gains and was rejected toward the 132.20 area. At the time of writing, the USD/JPY is trading at 132.30.
- Talks surrounding Kazuo Ueda’s appointment as the Bank of Japan Governor backed concerns over the ultra-easy monetary policy and favoured the USD/JPY bulls afterward.
- On the other hand, fears about the mystery objects flying over the US and China underpin the US Dollar’s haven demand and propel the USD/JPY prices. The US shot down nearly four such objects while China prepares to hit one such unidentified object while weighing on the market sentiment and fuelling the DXY. That said, the US Dollar Index, was up 0.20% near 103.80 by the press time.
- The USD/JPY pair stabilized around 132.30, up for the day and bullish in the daily chart. The stabilizes above 20 and 50 SMA and shows sign of breakout on upside, suggests bullish strength in short term. However, 20 SMA continued developing far below longer ones, indicating bears not exhausted. On upside, overcome 133.00 may encourage bulls to challenge 134.70, break above that level will open the gate to 137.40.
- Technical indicators suggest the bullish strength. RSI stabilizes around 52, while the Momentum indicator stabilizes in the positive territory, suggests upward potentials. On downside, the immediate support is 131.00, break below this level will open the gate to 129.80 area.
Support Level: 33920 - 33750 - 33540 Resistance Level: 34280 - 34490 - 34670
DJI
- DJI continued the advance, rallied from intraday low 33750 area, gained more than 500 pips to ended Monday around 34270, up for the day and indicates bullish sign in the hourly chart. Right now market is standing above 20 SMAs, suggests bullish strength. Meanwhile, 20 SMA started turning north and heading towards longer ones, suggests bulls not exhausted yet. On upside, overcome 34280 may encourage bulls to challenge 34490, break above that level will open the gate to 34670.
- Technical indicators suggest the bullish movement, developing above the mid-line. RSI stabilizes around 73, while the Momentum indicator stabilizes in the positive territory, suggests upward potentials. On downside, the immediately support is 33920, break below this level will open the gate for more decline to 33750 area.
Support Level: 85.10 – 84.00 – 83.00 Resistance Level: 87.00 – 89.00 – 90.00
BRENT
- The Brent consolidated in the familiar range, fluctuated from intraday low 85.10 area to high 87.00. It ended the day around 86.00. The price currently stabilizes above 20 and 50 SMA, suggests bullish strength in the hourly chart. Meanwhile, the 20 SMA and 50 SMA started turning flat but continued developing far above 200 SMA, indicates bulls not exhausted yet. On upside, overcome 87.00 may encourage bulls to challenge 89.00, break above that level will open the gate to 90.00.
- Technical indicators also suggest bullish movement, hovering above the midline. RSI climbs to 52, while the Momentum indicator stabilizes in positive territory, suggests upward potentials. On downside, the immediately support is 85.10, break below this level will open the gate for more decline to 84.00 area.
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