Category: Technial Analysis

Daily Market Outlook, March 2, 2023 All Eyes On Euro Area Inflation ISM data left Wall Street closing on a whimper, markets are increasingly pricing a higher terminal rate for the US rate cycle, compounded by hawkish rhetoric from Fed members Bostic & Kashkari both of whom remarked that a 5%+ terminal rate is required […]

Oil Traders Cut Longs The latest CFTC COT institutional positioning report, the first to be released since January 27, saw oil traders pairing back their upside exposure. Net longs were reduced from 249k to 243k contracts. The muted movement in positioning has been well reflected in the muted price action we’ve seen in crude recently […]

The British pound against the US dollar is declining. The current quote is 1.2000. The head of the BoE Andrew Bailey voiced yesterday that nothing had been decided firmly yet in terms of interest rate increases in Britain. At the conference, Bailey tried to warn investors of either excessive confidence about the end of interest […]

EURUSD, “Euro vs US Dollar” The currency pair formed a consolidation range around 1.0611, and with an escape upwards it corrected to 1.0690. Today a new structure of decline to 1.0584 should develop. And with a breakaway of this level downwards, a pathway for a wave to 1.0475 should open. GBPUSD, “Great Britain Pound vs […]

ISM Manufacturing Due Today The latest US ISM manufacturing data due today will be the key data focus for the session ahead. Recent upside in US data, alongside higher inflation, has been a key driver of the shift in the market’s Fed expectations. Traders are now anticipating a more hawkish stance from the Fed in […]

GBP On the Up GBP has been well bid across the Asian session and early European session today in response to news of UK PM Sunak’s Brexit breakthrough. The PM and EC president Ursula von der Leyen yesterday agreed to a new set of trade terms for Northern Ireland which, both sides hope, will finally […]

USDJPY, “US Dollar vs Japanese Yen” On H4, the quotes are nearing the overbought area. The RSI is returning to the resistance line. As a result, a test of 8/8 (137.50) should be expected, followed by a bounce off it and falling to the support level of 6/8 (134.37). The scenario can be cancelled by […]

EURUSD, “Euro vs US Dollar” On H4, at the support level the pair has formed a Hammer reversal pattern. The instrument is now going by the signal in an ascending wave. The goal of the growth might be 1.0650. However, the price may drop to 1.0530 and continue the downtrend without pulling back to the […]

Financial markets face a difficult choice between two narratives: a soft landing in key economies after a period of high inflation (thanks to the restart of China’s economy) and signs of a stubborn inflation that call into question the dovish policy outlook of central banks this year. The search for equilibrium is likely to keep […]

Inflation Drops Back in Feb The RBA will no doubt be welcoming the latest Australian inflation data received overnight. Yearly CPI was seen falling back to 7.4% in February, down from the 8.4% peak marked in January and below the 8.1% reading the market was looking for. The spike in January inflation threw a major […]