Daily Market Report

US stocks were little changed on Wednesday amid rising bond yields and a set of corporate earnings.

The Dow was down 0.23%, the Nasdaq Composite climbed 0.03% while the S&P500 closed 0.01% lower. Netflix shares lost 3.2% after the streaming company disappointed investors by delaying plans for password sharing crackdown.

On the other side, Gold fell sharply in early European trading reaching a low of $1970 per ounce before bouncing back on the back of a stronger Dollar. In the meantime, Oil prices retreated following the crude oil inventories release, ending the day below $79 per barrel.

In the US, traders await a few economic releases with existing home sales expected to have declined in March from 4.58M down to 4.50M, on the opposite, initial jobless claims are due to rise from 239K up to 240K.

Below, we will be analyzing the latest price action developments in the major currency pairs alongside gold.     

Daily Analytics


The Euro traded sideways on Wednesday after failing to overtake the 1.0985 resistance.

Technically, the trend has turned neutral in the near term with the pair trading inside a range extended between the 1.0900 support and 1.0985 resistance. As of today, we might see price stabilization in the coming hours, however, traders should focus on the 1.0830 level as it represents the key support level for the Euro. If the single currency continues to trade above it, the current drop is likely to be temporary and we might a continuation higher.

Finally, buyers must push prices above the 1.0985 resistance to confirm that the current downside retracement has come to an end.    


The British pound is fighting for a clear direction in the near term as buyers continue to support prices above the key support of 1.2350.

From a technical standpoint, the pair remains in a corrective move to the downside, in the meantime, when looking at the higher time frames, we can see that the positive trend is expected to persist as prices continue to respect a series of higher highs and higher lows since forming a low at 1.1800 level.
In the near term, a successful breakout above 1.2475 is needed, to clear the path for a retest of 1.2520 followed by 1.2570 in extension.

To summarize, the pair is expected to remain well-supported while prices remain above the 1.2350 support.    


This pair has reached a strong resistance located at 135.10 which represents the high registered on March 15.

For the time being, the recent rally is expected to stall and a move back lower in the direction of 134.30 followed by 133.80 can be seen in the coming hours.

The trend has turned neutral; therefore, prices are likely to trade sideways between 135.10 and 133.80 levels. Traders should wait for a clear breakout outside of this range before confirming the next direction in the near term.

In extension, a daily close above the 135.10-135.35 resistance zone, highlighted in the chart below, can confirm a bullish reversal in this pair.    


The pair extended its corrective move to the upside as prices managed to end yesterday trading above the 1.3450 resistance level.

Therefore, prices can target the next resistance level at 1.3490 before finding strong sellers.
It is important to note that the trend remains bearish in this pair and the recent advance should be considered temporary only.

However, we will wait for clear signs of a bearish reversal before confirming that the downtrend has resumed. The sellers are expected to counter the current move as the upside potential remains limited. Overall, the downside pressure is likely to stay unchanged while prices continue to trade below the 1.3555 high.

On the other side, the nearest support stands at 1.3410 followed by the 1.3360 level in extension.     


Gold fell sharply during yesterday’s trading session reaching a low of $1970 per ounce before bouncing back before the close.

Gold has entered a corrective phase as mentioned in our previous report; however, the main trend remains bullish, consequently, traders should wait for the positive momentum to resume before looking for a continuation higher.

In the near term, the yellow metal is expected to remain well-supported above yesterday’s low at the 1970 level. If the bounce extends, we can look for a retest of the 2008 resistance followed by the 2015 level.

In extension, a daily close above the 2015 level is needed to confirm the end of the current downside retracement, otherwise, the trend will remain neutral.

On the opposite, a continuation lower should find support at the 1990 mark followed by the 1980 level.    


Economic Analyst
Amine Hiani

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