Daily Market Analysis

U.S. stocks managed to rebound on Tuesday led by fresh buying in artificial intelligence and technology sector stocks. Major U.S. indexes ended the day higher with the S&P climbing 1.15%, moreover, the Dow rose 0.63% marking its first progress for the week, while the Nasdaq Composite added 1.65%. Big technology names such as Meta, Microsoft, and Nvidia succeeded to reverse Monday’s losses.
daily analytics

In the FX Market, the U.S. Dollar was slightly lower against a basket of major currencies despite better-than-expected economic data from the U.S. Meanwhile, the Japanese Yen continues to underperform, the USDJPY pair rose to the highest levels this year reaching the 144.00 mark.
On the other hand, gold failed to preserve its intraday gains. The yellow metal found strong sellers near the 1930-1935 hourly resistance zone before reversing lower targeting last week’s low at $1910 per ounce. In the short term, gold’s rise remains limited by its lack of positive momentum as prices are still unable to break through the 1940 barrier. In the meantime, a break below the 1910 support is needed to confirm another wave of decline in the direction of the psychological support of 1900 followed by the key weekly support located at $1885 per ounce. 

In the meantime, oil remains under pressure. Prices of WTI crude turned lower from the former broken support of $70.00 which turned into resistance reinforcing the bearish outlook in the near term. Consequently, sellers are likely to target the daily support at $67.00 in the coming hours while a daily close below it is likely to clear the path for further losses toward the weekly support located at the 64.25 level. Conversely, a break above the 70.00 barrier should increase the odds for a potential bullish reversal.
As of today, the focus will be on the ECB panel discussion which will gather senior central bankers. Moreover, oil traders will be waiting for the latest crude oil inventories from the EIA which are expected to have a short-term impact on WTI price action.

Economic Analyst
Amine Hiani

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