Daily Market Report

25/04/2023
10:26

US indexes closed on a mixed note on Monday ahead of a busy week.
The Dow rose 0.23%, the Nasdaq Composite fell by 0.29% while the S&P500 was little changed. This week, investors await a set of earnings reports including big tech companies such as Amazon, Meta, Alphabet, and Microsoft. On the other side, Both Gold and Oil managed to recover on the back of a weaker Dollar.
The yellow metal ended the day above $1990 per ounce while Oil prices stabilized around $79 per barrel.
In the US, new home sales are expected to have declined from 640K down to 633K, in the meantime, consumer confidence is due to fall slightly from 104.2 to 104.1.
Below, we will be analyzing the latest price action developments in the major currency pairs alongside gold.

EURUSD

The Euro trend has turned bullish again after buyers managed to overtake the 1.0985 resistance.
Technically, the momentum remains bullish in the near term and the pair is expected to test April highs near the 1.1075 level. Moreover, a successful break above it can clear the path for a continuation higher in the direction of 1.1120 in the coming hours. On the flip side, any drop should be considered a temporary retracement to the downside before the uptrend resume.
Finally, 1.1013 represents the hourly support while the next support stands at 1.0965. It is important to note, that the Euro will remain well supported while prices continue to trade above the 1.0965 support.

GBPUSD

The bullish momentum has increased in the British pound as we have seen a stabilization above the key support of 1.2350.
From a technical standpoint, the pair remains in an uptrend, in the meantime, when looking at the higher time frames, we can see that the positive trend is likely 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, buyers are expected to aim for higher prices targeting the 1.2530-1.2550 resistance zone. On the other side, important support stands at 1.2410 and the positive outlook should remain unchanged while the pair stays above it.

USDJPY

After reaching a strong resistance located at 135.10, we noticed a slowdown in the recent bullish momentum.
For the time being, the pair is expected to enter a consolidation phase and trade sideways between the 135.10 resistance and the 133.50 support in the coming hours.
The trend has become neutral; therefore, 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 lead to a continuation higher in the direction of 135.85, on the other side, a breakdown below 133.50 level can trigger a new wave lower towards the next support at 132.80.

USDCAD

The recent rally has stalled from a key resistance zone located between 1.3555 and 1.3580 levels.
Therefore, the pair is expected to find strong sellers in the coming hours, and it is important to note that the trend remains bearish in this pair when looking at the higher time frames.
In addition, the pair has shown a doji candle at the close of Monday which reinforces the probability of a pause in the short-term advance, meanwhile, traders should wait for clear signs to confirm that the downtrend has resumed.
Technically, the nearest support stands at 1.3490 followed by the 1.3450 level in extension.
While a daily close above 1.3580 should clear the path for 1.3630 in the coming days.

GOLD

Gold is fighting for a clear direction in the near term, the yellow metal reached a low of $1970 last week before bouncing back and stabilizing near the 1990 handle. The recent drop in Gold is corrective as mentioned in our previous report as 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 if the support of 1970 holds. In extension, the recovery can target the 2005 resistance followed by the 2012 level. However, a daily close above the 2015 level is needed to confirm the end of the current downside retracement, otherwise, the trend will remain neutral. Finally, the nearest support stands at $1987 followed by the 1981 level.

Economic Analyst
Amine Hiani