Daily Market Report

Later today, all eyes will be turned on the US inflation figures for the month of January.
The Federal Reserve is actively monitoring inflation levels to decide its future monetary policy.
A higher reading can lead to a tighter policy, while a low reading is likely to push the central bank to adjust its inflation expectations and ease the ongoing series of rate hikes.

The US CPI is expected to increase from 0.1% to 0.5%, while in the UK, the employment change is due to rise from 27K to 40K. In the meantime, the Eurozone GDP is likely to remain unchanged at 0.1%.

US stock indexes started the week on a positive note as investors await the US inflation report.
The US dollar traded lower in the currency market while gold prices stabilized after testing key support at $1850 per ounce.

Looking now at the latest price action developments in the major currency pairs alongside gold.      


The Euro bottomed from important technical support located at the 1.0660 level, which keeps the single currency well supported in the near term.

The current downside correction is likely to come to an end soon, especially if the pair continues to hold above the support mentioned above which can ease the latest bearish pressure. Therefore, prices are expected to bounce in the coming hours and a move back higher toward the 1.0765-1.0800 resistance zone can be anticipated.

From an intraday standpoint, the nearest support for the Euro stands at the 1.0700 level while the closest resistance is located at 1.0765, followed by the 1.0790 level.

In extension, a daily close above the 1.0800 handle should confirm a bullish reversal in this pair.    


The British pound traded higher against the US Dollar earlier this week as buyers succeeded to defend the 1.2040 short-term support.

As of now, the pair is testing the falling trendline drawn from the February 3rd high, which can lead to a temporary stabilization in prices. Moreover, a successful break above this barrier can trigger a continuation to the upside in the direction of the 1.2185-1.2200 resistance zone.

Technically, we can see that the bullish momentum is rising, and prices are expected to hold steady while trading above the 1.2040 low. In the near term, any drop is likely to find strong buyers near the 1.2100-1.2085 levels for another wave higher in the coming hours.

Following yesterday’s price action, this pair is expected to continue trading sideways to higher, and the short-term trend can switch to the upside if we do see a daily close above the 1.2200 mark.     


The recent rally stalled after testing the hourly resistance located at the 132.90 level.

Looking at the short-term price action, the pair is likely to see more choppiness as the trend has turned neutral. Prices are expected to continue trading sideways unless we see a clear breakout above 132.90 in the next few days.

If the pair remains below the 132.90 peak, sellers can aim for lower prices that can reach the 131.50-131.30 support zone again, on the other side, a successful breakout above the resistance mentioned above should trigger an impulsive move in the direction of the 134.00 psychological barrier.   


The currency pair failed to overtake the 1.3470 resistance level mentioned in our previous report as sellers succeeded to push prices below the near-term support of 1.3375.

From a wider angle, the trend remains neutral in this pair, however, the short-term momentum has turned slightly negative, therefore, the pair is expected to trade sideways to lower in the coming hours if prices stay below the 1.3380 resistance.

A continuation lower can target the next support located at 1.3260, on the opposite, a daily close above 1.3380 resistance might send prices toward the 1.3450 level.   


The gold decline is likely to pause as prices have reached a major support level which stands at $1832 per ounce. In the near term, any potential advance should find resistance at the 1842 level, while a break above it can send the yellow metal toward the next resistance zone located between the 1850 and 1852 levels. Moreover, the bigger technical picture is showing that the recent decline is corrective, and prices might find new demand after reaching the 50% Fibonacci retracement drawn from the 1957 peak to 1725 low. To summarize, the short-term momentum remains bearish for the time being, however, technical indicators are showing that gold has reached the oversold territory which can lead to a short-term bounce. Finally, a break below 1830 support should weaken recovery chances.
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