Today's Important Indicators
The dollar took a breather yesterday after five consecutive bullish sessions giving the opportunity to market participants to enter at a lower levels as rising US Yields hit a ceiling above 3%. With inflationary Oil prices it was expected that US Yields would rise as expectations over interest rates change when inflation rises. EIA will be the day’s highlight.
EUR/USD – Bearish rally slows as Dollar reaches Yield ceiling, ECB remains weekly highlight. Euro took a breather in the Tuesday session purely owed to Dollar’s weakness as the German Ifo seems to have no directional impact on the pair. Following a recent consecutive downside momentum Euro found temporary support at psychological $.122 despite the ascending trendline was breached on Monday. With price rejected at the bottom side of the trendline bearish pressure is still alive.
EUR/USD 4-HOUR CHART
GBP/USD – Cable halts at Fibo Extension as Budget Surplus surprises, Dollar softer. The British Pound posted marginal gains yesterday and took advantage of a somewhat weaker US counterpart and due to a surprising budget surplus of 0.3 Billion Pounds. Price reversed following a rejection at the 160.8% Fibonacci extension at 1.3920. Friday’s GDP critical for directional bias, although, rate remains Dollar dependant.
GBP/USD 4-HOUR CHART
USD/JPY – Yen declines past 109 reaching a February low against Dollar as Yields cross above 3%. Dollar-Yen hit a February 5 high in the Tuesday session but moved back to daily open following a pullback on the 10-year yields. The pair retreated after yields crosses above the psychological 3% while the positiv CB Consumer seemed to have no significant impact in the market despite being US positive. Another uptilt towards 109.30 is widly expected as geopolitical risks sudside.
USOIL – Oil falls on disappointing API and developments surrounding Iran nuclear deal, EIA in focus. WTI deteriorated nearly $1.4/b yesterday forming a double top after news that an agreement to safeguard the Iran nuclear deal is likely to be reached soon. In addition, API reported a build of 1.1 million barrels in inventories, adding further downside pressure. Trades will participate in today’s EIA release at 14:30 GMT.
OIL 4-HOUR CHART
XAU/USD – Gold recovers some losses as 10Yr Treasury Yields push Dollar lower, support at $1322/oz. Gold took a breather on Tuesday despite it started the week on sharp losses owed to US Yields as symbolic 3% acted as take profit level for investors. The precious metal strengthened the support at $1322/oz despite, yet, concerns over inflationary pressures remain while global tensions ease; 1313 next.
XAU/USD 4-HOUR CHART
US Indexes – DJ plummets 1.74%, S&P 500 plunged by 1.34%
European Indexes - UK 100 fell by 0.60%, DE 30 0 declined by 0.90%
Asian Indexes - ASX 200 was unchanged%, Nikkei 225 lost 0.28%, Hang Seng trades 1.19% lower.
US Equities – Alphabet suffered massive 4.77% losses, Amazon depreciated by 3.81%
Stavros Tousios is an experienced forex market specialist who provides insightful market analysis to traders of popular currency pairs, stocks, commodities and indices. With a focus on technical analysis, he closely analyses present and historical market data in order to provide our clients with any relevant information which may help in making their strategic trading decisions.