4/11/2022 Daily Reports
Support Level: 0.9700 - 0.9630 - 0.9540 Resistance Level: 0.9800 - 0.9850- 0.9910
EUR/USD
- The euro has recovered modestly on Thursday’s US trading session, bouncing up from the 0.9740 area to reach 0.9760. The pair, however, remains negative on the daily chart and trading nearly 3% down on the week.
- Business activity in the US services sector expanded at a slower pace than expected in October, according to the ISM PMI, which has declined to 54.4 from 56.7 in September, beyond the 55.5 expected by the market. Beyond that, the employment gauge has dropped to 49.1, entering levels consistent with a contraction, from 53.0 in the previous month while the new orders sub-index retreated to 56.5 from 60.6, revealing the uncertainty in the economic conditions.
- The Fed hiked rates by 0.75% for the fourth consecutive time, as widely expected, and suggested that interest rates might peak at higher levels than markets had expected. Fed President Powell’s hawkish comments dampened expectations of a dovish pivot in December and boosted the dollar and US Treasury bonds.
- The EUR/USD pair is trading near the 0.9760, down for the day with the bearish stance in daily chart. The pair struggled 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 0.9800, break above this level will extend the advance to 0.9910.
- Technical readings in the daily chart support the bearish stances. The RSI indicators hovering below the midlines and stabilized around 44. The Momentum indicator stabilized below the midline, indicating downward potentials. On downside, the immediate support is 0.9700 and below this level will open the gate to 0.9630.
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Support Level: 1.1060 - 1.0900 - 1.0760 Resistance Level: 1.1280 - 1.1420 - 1.1565
GBP/USD
- The GBPUSD continues to drop during Thursday’s North American session, following rate hikes by the BoE and the Fed, lifting overnight rates by 75 bps. At the time of writing, the GBP/USD is trading at 1.1160, plunging to fresh two-week lows, down almost 2%.
- The BoE’s decision further than to help the British Pound weakened the currency, as the central bank pushed back against market expectations to hike the Bank Rate towards 5%. The central bank added that the UK economy entered a recession in the three months through September, with output falling an estimated 0.5%. The BoE expects a “long-lasting recession” will hit the UK, and the duration would depend on how high the BoE hike rates.
- In addition, the lack of a fiscal plan, as the new Prime Minister (PM) Rishi Sunak delayed Chancellor’s James Hunt plan, as Sunak, a previous finance minister, wants to have some input regarding the UK’s new budget.
- The GBP/USD offers bearish stance in daily chart. Cable stabilized below 20 and 50 SMAs, indicating bullish strength in short term. Meanwhile, the 20 SMA started turning south and heading towards longer ones, suggests bears not exhausted yet. On upside, The immediate resistance is 1.1280 with a break above it exposing to 1.1420.
- Technical readings in the daily chart support the bearish stances. RSI indicator stabilized around 42, while the Momentum indicator stabilized near the midline, suggesting directionless potentials. On downside, the immediate support is 1.1060, unable to defend this level will resume the decline to 1.0900.
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Support Level: 1614 - 1600- 1570 Resistance Level: 1675 - 1686 - 1700
XAU/USD
- Gold price stumbles following hawkish commentary of the Federal Reserve Chairman Jerome Powell. Also, data from the United States flashed that business activity continues to expand while the labor market remains tight. At the time of writing, the XAUUSD is trading at $1630, down around half a percent.
- The dollar finished Wednesday higher across the FX board following a volatile American session. The US Federal Reserve was behind the wild moves, as the central bank delivered as expected, but Chair Jerome Powell surprised with a hawkish speech.
- Chair Jerome Powell’s speech brought dollar buyers back to life. The head of the central bank noted that inflation needs to be taken down “decisively,” adding they are ready to change the monetary policy as needed. He mentioned that slowing the pace of rate hikes will become necessary at some point but also that it may take time for inflation to come down, and therefore, a restrictive policy stance should stay for some time. Finally, he added that the ultimate level of rates would be higher than previously expected. His words revived the odds of a fifth 75 bps in December.
- Gold price stabilized around 1630, down for the day and bearish in the daily chart. The gold price stabilized below 20 and 50 SMA, suggesting bearish strength. Meanwhile, the 20 SMA continued developing below longer ones despite it started turning flat, indicating bears not exhausted yet. On upside, the immediate resistance is 1675, break above this level will open the gate to extend the advance to 1686 area.
- From a technical perspective, the RSI indicator hold below the midline and stabilized around 40, suggesting bearish strength. The Momentum indicator struggled below the midline, suggests downward potentials. On downside, the immediate support is 1614, below this area may resume the decline to 1600.
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Support Level: 146.80 - 145.00 - 143.50 Resistance Level: 148.50 - 149.00 - 149.70
USD/JPY
- The USDJPY erased gains during the American session and dropped from 148.44 to 147.60. The slide took place after the greenback lost momentum following the release of the ISM Service Index. It then bounced from there and back to above 148.00 to ended Thursday, still bullish in the daily chart.
- Ahead of the Non-farm Payrolls report due on Friday, the ISM Service sector report showed numbers below expectations across all indicators. The headline fell from 56.7 to 54.4, against market consensus of 55.5. The employment index fell to 49.1, versus the 51.6 expected.
- The greenback lost momentum after the report and following the first hour of trading on Wall Street, which saw equity prices trim losses. US yields pulled back and favored the retreat in USDJPY.
- The USD/JPY pair stabilized around 148.25, up for the day and bullish in the daily chart. The price still maintains the upward slope and stabilized above all main SMAs, suggests bullish strength in short term. Meanwhile, 20 SMA continued accelerating north and developing above longer ones, indicating bulls not exhausted. On upside, overcome 148.50 may encourage bulls to challenge 149.00, break above that level will open the gate to 149.70.
- Technical indicators suggest the bullish strength. RSI stabilized around 57, while the Momentum indicator continued developing above the midline, suggests upward potentials. On downside, the immediate support is 146.80, break below this level will open the gate to 145.00 area.
Support Level: 31740 - 31400 - 31000 Resistance Level: 32280 - 32500 - 32760
DJI
- DJI under the sell pressure, retreated from intraday high 32270 area to 31738 daily low. It recovered modestly and ended Thursday at around 32012, down for the day and bearish in the hourly chart. The price stabilized below 20 SMA and 50 SMA, suggests bearish strength. Meanwhile, 20 SMA started turning south and heading towards longer ones, suggests bears not exhausted yet. Fail to defend the downside bullish trend line and 200 SMA will trigger another leg down. On upside, overcome 32280 may encourage bulls to challenge 32500, break above this level will open the gate to 32760.
- Technical indicators suggest the bearish strength. RSI stabilized around 42, while the Momentum indicator stabilized below the midline, suggests downward potentials. On downside, the immediate support is 31740, break below this level will open the gate for more decline to 31400 area.
Support Level: 94.00 -93.00 - 91.50 Resistance Level: 95.40 - 96.50 - 98.00
BRENT
- Brent under the sell pressure , retreated from intraday high 96.00 area to intraday high 94.20, it trimmed some losses and ended Thursday at around 94.60, down for the day and bearish in the hourly chart. The price stabilized below 20 and 50 SMA, suggests bearish strength in short term. Meanwhile, the 20 SMA continued accelerating south and heading towards 50 SMA, indicating bears not exhausted yet. On upside, overcome 95.40 may encourage bulls to challenge 96.50, break above this level will open the gate to 98.00.
- Technical indicators suggest the bearish movement, hovering below the midline. RSI stabilized at around 42, while the Momentum indicator stabilized in negative territory, suggests downward potentials. On downside, the immediate support is 94.00, break below this level will open the gate for more decline to 93.00 area.
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