Wed, Mar 03, 2021 @ 14:45 GMT
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AUD Lower Despite Strong Aussie GDP

The Australian dollar is in negative territory on Wednesday. Currently, the pair is trading at 0.7793, down 0.33% on the day. Australia GDP rises 3.1% Australia’s economy grew by 3.1% in the fourth quarter of 2020. This figure was slightly down from the 3.3% gain in Q2, but easily beat the...

Budget Day is Here

The FTSE has kicked off the day on the front foot as economic output showed signs of stabilising and ahead of the Spring Budget. Banks are leading the charge on the FTSE while the pound trades just shy of USD1.40 prior to Chancellor Rishi Sunak’s appearance. Sunak finds himself...

EURGBP Tiptoes Sideways As Bearish Tone Lingers

EURGBP is consolidating, creeping along the somewhat softened downward slope of the 50-period simple moving average (SMA) around 0.8641. The directionless Ichimoku lines have neared each other and are currently reflecting feeble directional momentum. Despite recent improvements off a foothold at a 1-year low level of 0.8538, the SMAs...

The Market Is Awaiting Statemnets From Finance Minister Rishi Sunak And Data From The ISM Institute On Services In The US

On Tuesday, the statements of Fed member Lael Brainard about the recent rise in government bond yields were considered as the main event of the day. According to her, the speed of the situation development is attracting attention, and she will be concerned if there is a constant tightening...

The Analytical Overview Of The Main Currency Pairs

The EUR/USD currency pair Technical indicators of the currency pair: Prev Open: 1.2047 Prev Close: 1.2089 % chg. over the last day: +0.35% Yesterday, the euro partially regained its position after a two-day fall. This happened as the dollar index touched the daily moving average. This caused a pause in buying the greenback. The...

Oil Recovers In Asia, Gold Edges Up

Oil rises in Asia Oil markets finished the New York session lower once again overnight, as the market positions for an expected reduction in production cuts by OPEC+ tomorrow. The fall was helped along by an unexpectedly significant rise in US API crude inventories. Brent crude fell by 1.25% to...

Currencies Mark Time In Asia

US dollar retreats overnight Currency markets are drifting in Asia after a non-descript session overnight. The US dollar gave back some of its recent gains overnight, with the dollar index retreating 0.28% to 90.78. It is barely changed in Asia, rising two points to 90.80 as trading among the major...

ECB Said To See No Need For Drastic Action To Combat Rising Bond Yields

Notes/Observations ECB said to see no need for drastic action to curb bond yields at this time Euro Zone Feb PMI Services saw upward revisions in most the final readings (Beats: Euro Zone, France; Misses: Germany, UK) Focus UK budget speech; expected to maintain high spending to support the...

Dollar Snaps Gains As Fed Doubles Down On Easy Policy

Dollar suffers sharp pullback as yields settle lower, Fed hints at unease about surge Economic optimism, bond market calm drive stocks, US futures higher Pound hoping for budget boost as $1.40 becomes elusive, euro tests $1.21 Bond market rout eases further, with a little help from the Fed The panic...

EUR/USD Bullish ABC Zigzag Aims At Fibonacci Targets

EUR/USD is showing signs of indecision: the bearish price action was stopped at the 1.20 support level and trend lines (green). What is going on with this pair? The bullish bounce was strong at 1.20. This suggests a wave A (orange) of a larger ABC (orange) in wave 2 (grey). The...

USD Edged Lower As Vaccination Roll Out Continues

The USD tended to edge lower against a number of its counterparts, while US stock markets sent out mixed messages at yesterday’s session. At the same time commodity currencies tended to gain against the USD benefited by the improved market sentiment. It should be noted that US President Biden...

Asia Seeing Green After Aussie GDP

Asia equities rally on vaccines and Australian GDP Equity markets are experiencing a wax on, wax off week, tail-chasing short-term momentum of whichever story carries the most weight on the day. Yesterday it was bubbles, which saw equity markets unwind part of the impressive rallies seen on Monday. The S&P...

NZD/USD Target At 0.7400

The New Zealand Dollar surged by 92 pips or 1.28% against the US Dollar on Tuesday. The currency pair reversed from the lower boundary of an ascending channel pattern during yesterday's trading session. Most likely, bullish traders could continue to pressure the exchange rate higher during the following trading session....

GBP/USD Recovers Above 1.3950

The support zone that surrounds the 1.3850 mark held. Namely, after testing the zone for nine hours, the GBP/USD began a recovery. By the middle of Wednesday's European trading hours, the rate had reached the 1.3990 level. In addition, the resistance of the 100-hour simple moving average was passed. In...

USD/JPY Finds Support In SMA

Instead of reaching new high levels or trading sideways, the USD/JPY retraced back down to the support of the 55-hour simple moving average. On Wednesday, the SMA had pushed the rate back to the 106.90 level, which provided resistance on Tuesday. Note that the 106.90 level is the location of...

GOLD Reveals Channel Down Pattern

The yellow metal's recovery found resistance in the 1,740.00 level. Meanwhile, the price almost ignored the 55-hour simple moving average and the 38.20% Fibonacci retracement level. Namely, round price levels managed to provide more impact than technical indicators. In the meantime, the recent low levels were used to draw a...

GBP/USD Outlook: Sterling Eyes Signals From PMI Data And 2021 Budget

GBPUSD Cable edges higher in early Wednesday’s trading but remains within range, capped by 1.40 level, now reverted to solid resistance. Pullback from new nearly three year high showed signs of stall after being repeatedly contained by rising 20DMA, but subsequent recovery attempts were limited, with double-Doji (Mon/Tue) signaling indecision. Daily...

The Noise Continues

The noise continues in financial markets, which are wasting a lot of energy vacillating between global recovery hopes and asset bubble fears this week. The US bond tantrum has introduced some long overdue two-way price action into the nearly one-year unidirectional buy-everything rally. That state of affairs is likely...

LTCUSD Breaking Out

Litecoin is breaking to the upside on Wednesday after bulls move the price through the technically important $190.00 resistance level. The four-hour time frame shows that the Parabolic SAR indicator is now generating a strong buy signal for the LTCUSD pair. The $225.00 level is a possible upside target...

ETHUSD Watching Key Trendline

Ethereum is on the rise alongside the broader cryptocurrency market, following yesterday’s heavy rejection from the $1,610 level. The four-hour time frame shows that a breakout above key trendline resistance, around the $1,620 level, could cause a rally towards the $1,750 area. Failure to break the $1,620 resistance level...

EUR/USD Recovers To 1.2100

The support of the 1.2000 mark was enough for the EUR/USD to start a surge, which managed to pass the resistance of the 55-hour simple moving average and reach the 1.2100 mark. In the meantime, the 1.2100 level was strengthened by the 100-hour simple moving average. In the near term...

USD/CAD Decline Could Continue

The US Dollar declined by 91 pips or 0.72% against the Canadian Dollar on Tuesday. The currency pair breached the 200– hour simple moving average during yesterday's trading session. As for the near future, the exchange rate could continue to decline in a descending channel pattern. The potential target for...

AUD/USD Bulls Could Prevail

The Australian Dollar surged by 101 pips or 1.31% against the US Dollar on Tuesday. The currency pair breached the 50– hour simple moving average at 0.7750 during Tuesday's trading. Everything being equal, the AUD/USD exchange rate is likely to continue to edge higher during the following trading session. The...

EUR/JPY Bounces Off Support

The EUR/JPY currency pair bounced off the 200– hour simple moving average at 128.56 on March 2, as a result, the common European currency has surged by 98 pips or 0.76% against the Japanese Yen since Tuesday's trading session. All things being equal, the exchange rate is likely to continue...

GBP/USD Pair Is Correcting Higher From The 1.3858 Low

The British Pound started a downside correction from well above 1.4100 against the US Dollar. The GBP/USD pair even broke the 1.4000 support zone to move into a short-term bearish zone. The pair traded as low as 1.3858 and it is currently correcting higher. There was a break above a...

GBP/JPY Bullish Trend Might Come To A Halt Soon

The GBP/JPY is bullish but it is coming close to a resistance. 149.80-150.00 will be a hard nut to crack. In the POC zone, we can see a lot of confluence. D H5, W H4 camarilla levels along with historical sellers and 78.6-88.6 fib pose a threat to bulls. I...

AUDUSD Avoids Trend Deterioration, But Upturn Looks Fragile

AUDUSD is healing its injuries after the 50-day simple moving average (SMA), the surface of the Ichimoku cloud, and the ascending trendline from November blocked last week’s aggressive pullback from a three-year high of 0.8006. The ongoing recovery mode, however, warrants some caution as the MACD continues to weaken below...

GBPJPY’s Pullback Edges Towards The Cloud, Ascent Still Intact

GBPJPY is consolidating after fading from its near 34-month peak of 150.43 and is currently tackling the 149.28 barrier. The pair continues to find footing off the cloud's upper boundary, while the Ichimoku lines are backing a more neutral price tone. Specifically, the 50-period simple moving average (SMA) is...

NZDUSD Rebounds Off Uptrend Line, Flirts With 0.73

NZDUSD is continuing the rebound off the ascending trend line, overcoming the 20- and 40-day simple moving averages (SMAs) and moving towards 0.7300. The short-term bias looks positive as the MACD is trying to surpass its trigger line in the positive territory, while the RSI seems to be making...

The Direction On Bond Markets Is Clear-Cut, But Dollar Dynamics Remain Mysterious

Markets Tensions on core bond markets eased further yesterday. US Treasuries outperformed German Bunds. Changes on the US yield curve ranged between -3.6 bps (5-yr) and +0.2 bps (2-yr). German yield changes varied between +0.3 bps (30-yr) and -1.8 bps (10-yr). The EMU/US eco calendars were empty apart from February...