EUR/USD: PRICE REACTED IN SUPPORT ZONE | LONG SETUP READY 🔔Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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Bitcoin turned against the tide | LONG SCENARIO 🔔BTC is holding at $38K for the second day in a row, remaining 12% below the levels it reached a week earlier. Ethereum lost 1.3% over the past day, other leading altcoins from the top ten are moving in the range between +1% (BNB) to -4% (XRP).
According to CoinMarketCap, the total capitalization of the crypto market decreased by 0.2% over the day, to $1.71 trillion. The Bitcoin Dominance Index added 0.1% to 42.4%.
The Fear and Greed Cryptocurrency Index lost 2 points to 21 in a day and remains in a state of “extreme fear”.
Bitcoin has started this week with a drawdown along with a decline in all risky assets on reports of intensified hostilities in Ukraine. In the middle of the day, BTC managed to turn against the tide, winning back the initial failure, despite the decline in stock indices.
US discussed the possibility of a ban on Russian oil imports, which could lead to a jump in energy prices and slow economic growth.
Big players are piling up USDT during the decline of bitcoin in order to probably buy the first cryptocurrency at a lower price, according to Sentiment. Including, according to Whale Alert, a wallet with 407 BTC “woke up”, which has not been active since 2013. It may well expect big deals from him in the near future.
One of the founders of Apple, Steve Wozniak, said that most crypto assets are robbery and fraud. However, he has always admired bitcoin and called it in 2020 a “unique mathematical marvel”, but specified that he wasn't planning to invest in BTC.
AUD/USD: Options market turns most bearish in three weeks 🔔One-month risk reversal (RR) of AUD/USD, a gauge of calls to puts, drops the most since February 14 on daily basis, per data source Reuters. That said, the spread between call and put options prints -0.287 level by the press time of early Tuesday morning in Europe.
Not only the daily print but the fifth consecutive negative weekly print also portrays the market’s bearish bias over the AUD/USD. That said, the latest print of weekly RR is -0.175.
Given the AUD/USD pair’s risk-barometer status, the escalation in the Ukraine- Russia tussles seems to favor the options bears.
The pair’s latest performance also justifies the negative RR as AUD/USD renews intraday low around 0.7275 by the press time, down 0.50% on a day. That said, a speech from RBA Governor Philip Lowe, during late Tuesday, acts as a nearby catalyst for the pair traders to watch.
EUR/USD: Next bearish targets aligns at 1.0750 and 1.0650 🔔EUR/USD fell back to its lowest levels on Monday since the first phase of the COVID-19 crisis in early 2020. As economists at MUFG Bank note, energy price shock keeps risks titled to downside.
Gas prices surge higher in Europe
“The price of natural gas in Europe has already surged higher by almost 200% since the Ukraine conflict started creating a significant headwind for growth in the eurozone. The weakening growth outlook for the eurozone economy is already reflected by the weaker euro.”
“The next key support levels come in around 1.0750 and then 1.0650 with risks remaining titled to the downside for the pair.”
NZD/USD : HARMONICS ANALYSIS + FUNDAMENTALS | SHORT VIEWNZD/USD eyes to fill day-start gap to the south, posted the biggest weekly jump since October 2021.
Markets sentiment remains sour as Russian invasion of Ukraine continues, US eyes banning oil & gas import from Moscow.
Upbeat prices of commodities help Kiwi to battle firmer greenback, US jobs report came in upbeat for February.
No major data/events on the calendar, geopolitical headlines to keep the driver’s seat.
NZD/USD bulls poked January’s high during the five-week uptrend by the end of Friday, picking up bids to fill the week-start trading gap around 0.6850 amid early Monday morning in Asia.
The Kiwi pair’s latest gains could be linked to the increasing price pressure and the Reserve Bank of New Zealand’s (RBNZ) hawkish performance. On the contrary, the market’s rush to the US dollar, in search of risk-safety due to the Russia-Ukraine crisis, tests the pair buyers.
While observing major central banks, the Fed and the RBNZ are the only two that are clearer in their future moves and have more hawkish signals to spread than any other counterparts, which in turn keeps the NZD/USD bulls hopeful. On the same line are statements from the ANZ saying, “Although the most striking gains have been seen in oil, food commodity prices are following, and that’s seen both the NZD and AUD diverge from EUR and GBP, which have suffered in the face of apparent USD strength.”
Elsewhere, the evacuation of Ukrainian civilians is jittery during the weekend as Russian forces kept marching towards Kyiv. Recently, the Moscow-led militaries blew an airport in central Ukraine while Friday’s threat over nuclear facilities was the biggest. The West tries to tame Moscow’s moves with more sanctions with the latest discussions on banning energy imports. However, Russian President Vladimir Putin remains determined to complete the “operation” and demands Ukraine’s complete surrender for peace.
It’s worth noting that Friday’s upbeat US jobs report for February and comments favoring future rate increases by the Fed, from Chicago Fed President and FOMC member Charles Evans, added to the US dollar’s strength.
Amid these plays, Wall Street closed in the red and the US 10-year Treasury yields also posted the biggest weekly loss since mid-2020.
Looking forward, this week’s US inflation data will be crucial to watch amid a light calendar and silent period for the Fed speakers. Above all, headlines concerning Russia and Ukraine will be crucial.
S&P 500 Falls on Geopolitical Risks as Ukraine War Drags|Short🔔S&P 500 OUTLOOK:
The S&P 500 falls amid elevated geopolitical tensions in Eastern Europe
Sentiment remains fragile on Wall Street as the crisis in Ukraine drags on for another day
It was another wild day on Wall Street loaded with volatility amid rising tensions surrounding the tragic military conflict unfolding in Ukraine. Against this backdrop, U.S. stocks opened mostly in positive territory, but reversed sharply lower in the afternoon trade as the crisis in Eastern Europe dragged on for a seventh day unabated. In fact, President Putin appears to be doubling down on his war of aggression, rejecting the idea of ceasefire without demilitarization of Ukraine, a non-starter for the West.
When it was all said and done, the S&P 500 tumbled 0.53% to 4,363, failing to build on the powerful rally from the previous session, a sign that geopolitics continues to constrain bullish sentiment and dominates price action.
At this point, it is hard to predict how the situation will play out, but an escalation of the crisis could push oil prices even higher than they are today, exacerbating inflationary pressures and strengthening the case for aggressive monetary tightening at a time when the U.S. economy is already cooling. Obviously, this is a bad outcome for stocks.
Aside from geopolitics, traders should also keep an eye on incoming macro data for clues on the health of the U.S. economy. On that note, tomorrow's NFP numbers will be of great importance. Investors expect the employment survey to show an addition of 400,000 jobs in February, but an upside surprise should not be ruled out following ADP's strong print. A robust result may ease Wall Street’s concerns about the slowdown, providing some respite for stocks and acting as a short-term bullish catalyst, provided we don’t start the session on risk-off mode.
XAU/USD risks a correction before next upswing kicks above $ 2KGold price has quickly pulled back from 19-month highs above the $2,000 mark.
The Ukraine crisis intensifies as the West plans a ban on Russian oil imports.
Overbought conditions on the 4H chart warrant cautious for gold bulls, uptrend still intact.
Gold price has shot through the roof in a bid to retest the $2,000 level, extending its last week uptrend. Gold bulls appear unstoppable, as a flight to safety continues to remain the main market motor amid escalating Russia-Ukraine crisis. Russia’s resolve to invade Ukraine gets entrenched deeper at the start of a new week so does the West’s commitment to isolate Russia and stop the war. The US and its NATO allies are weighing in a ban on the Russian oil imports, aimed at crippling the latter’s economy and isolating it from the rest of the world. This has quickened the pace of the oil rally, as the prices of both the US and the UK oil reached the highest levels since 2008. The oil shock aggravated global recession fears, prompting investors to seek safety in the traditional safe-haven gold.
Although investors remain cautious, given the extent of the gold price rally, as profit-taking could pick up pace on reports that the Russian military is said to hold fire and open humanitarian corridors in several Ukrainian cities at 0700 GMT on Monday, per Interfax. Further, the Western pressure on Russia could lead the latter to hold another round of ‘peace talks’, offering some temporary relief to gold bears. The hawkish Fed’s expectations, in the wake of the US Nonfarm Payrolls blowout, could also act as a trigger for the additional pullback in the bright metal. Meanwhile, the economic calendar remains sparse at the start of this week, leaving gold price at the mercy of the risk trends and the developments surrounding the Ukraine crisis.
Gold price, however, could see an extension of the ongoing corrective downside, as the Relative Strength Index (RSI) on the said time frame is trading well within the overbought territory, currently at 77.20.
Further retracement in gold price will call for a test of the previous month’s high of $1,975, below which the $1,950 psychological barrier could come into play.
The next relevant downside target is seen at the upward-sloping 21-Simple Moving Average (SMA) at $1,946.
Should the buyers regain poise, then gold price could recapture the $2,000 threshold, above which the triangle pattern target will be on their radars.
USD/JPY: Further losses seen below 114.40 | Short Setup 🔔Extra decline in USD/JPY is likely on a breakdown of the 114.40 region in the near term, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “USD dropped to 114.63 last Friday before rebounding to close at 114.78 (-0.59%). Despite the rebound, the risk appears to be tilted to the downside. That said, any USD weakness is expected to face solid support at 114.40. Resistance is at 115.05 followed by 115.25.”
Next 1-3 weeks: “Our view from last Thursday (03 Mar, spot at 115.55) where USD could rise to 115.90 was invalidated as USD dropped below our ‘strong support’ level at 115.00 (low of 114.63). Downward momentum is beginning to build but USD has to close below the major support at 114.40 before further weakness is likely (next support is at 114.00). The chance for USD to close below 114.40 is not high for now but would remain intact as long as USD does not move above 115.40 within these few days.”
EUR/USD:PRICE ACTION ANALYSIS+FUNDAMENTALS | PRICE MAY REBOUND🔔EUR/USD has dropped to its weakest level since May 2020 at 1.0820 at the start of the week but the pair has managed to stage a modest rebound heading into the European session. In the current market environment, however, the shared currency is unlikely to find enough demand to kick start an extended recovery against the greenback.
Ukrainian authorities said over the weekend that civilians died in the suburb of Irpin when the Russian military ignored the ceasefire and hit an evacuation point. Meanwhile, the UK's Ministry of Defense said early Monday that Russia was probably targeting Ukraine's communications infrastructure to limit citizens' access to reliable news. Finally, the General Staff of the Armed Forces of Ukraine noted in a statement that Russia was accumulating resources to attack Kyiv.
There won't be any high-impact data releases in the economic docket on Monday and geopolitical headlines are likely to continue to dominate the market action.
Since the beginning of the war, the greenback has preserved its safe-haven status with the US Dollar Index surging to its strongest level in 22 months near 99.00 on Monday. Sadly, the latest developments suggest that a de-escalation of the crisis is nowhere near in sight and EUR/USD should remain on the back foot with the dollar holding its ground.
In addition to the risk aversion, renewed expectations for a dovish shift in the European Central Bank's (ECB) policy outlook also weigh on the euro. According to a recently conducted Reuters poll, the ECB is widely expected to wait until the last months of 2022 before hiking its policy rate. "Of the 33 of 45 respondents who expected the deposit rate to rise from a record low of -0.50% this year, 18 saw it at -0.25% at year-end, nine had it lower than that and six saw it higher, Reuters wrote.
RUSSEL 2000: DOWNTREND | PRICE ACTION IN BEARISH CHANNEL| SHORT Bigger isn't always better.
Case in point: Lots of trading desks are locked in on the dramatic underperformance of the small-cap Russell 2000 Index amid the bounce-back in broader stocks from the late January lows. The Russell 2000 — which is often viewed a proxy for the strength (or lack thereof) of the domestic economy — is down 10.5% this year compared to a 6% drop for the S&P 500 and 3.6% decline for the Dow Jones Industrial Average.
The Russell 2000 has lagged the S&P 500 by 25 percentage points in the past 12 months, its worst 12-month relative return since 1999, notes Goldman Sachs' David Kostin.
"Decelerating GDP growth has been one headwind to the cyclical small-cap index. During the last 20 years, small-caps have lagged on average in periods when the yield curve was flattening, economic growth was strong but decelerating, or financial conditions were tightening," Kostin says.
Traders are now trying to determine whether the weakness in the Russell 2000 suggests another pullback in the markets is in the offing. After all, larger cap stocks are exposed to the same things (tightening financial conditions, higher interest rates, inflation, etc.) as smaller companies.
"The small cap Russell 2000 has been a “canary in the coal mine” for stocks for much of the past year — first warning softly as small cap momentum peaked along with other areas of euphoric sentiment in 1Q21 even as large caps continued to rise, and then more urgently as its breakdown from a year long range led the broader market lower. As stocks bounce from their January slide, though, small caps have shown signs of sputtering below their prior support. Floors can often become resistant when broken, and with the Russell 2000’s recent track record as a leading indicator for broader market weakness, we will be watching the reaction to this level closely. Failure would suggest further correction in stocks lies ahead, while a break above could indicate stabilization," explains Evercore ISI's Julian Emanuel.
Of course, the Russell 2000 sucking wind could mean absolutely nothing to the S&P 500's next big move. No analysis is fool proof. Just file this under your "Things to Watch List," especially as the bulls begin to resurface and blow their normal smoke in your face.
Now go forth and conquer in what will be another mentally draining week of corporate earnings. Happy trading!
NZD/USD:BULLISH TREND | PRICE STILL GROWING ! Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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EUR/USD:STRONG SUPPORT | PRICE MAY GROW 🔔Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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USD/CHF:BEARISH CHANNEL | PRICE WILL CONTINUE TO FALLING DOWNHello Everyone, I hope you'll Appreciate our Price action Analysis !
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EUR/USD:PRICE IS GROWING | TRIGGER SETUP FOR SHORT POSITIONHello Everyone, I hope you'll Appreciate our Price action Analysis !
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AUD/USD:NEW BULLISH IMPULSE READY ON CHANNEL | LONG Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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EUR/USD:POSSIBLE REVERSAL COMING | LONG SETUP⚡️Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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NZD/JPY:BULLISH CHANNEL | PRICE IS READY TO GROW ! ⚡️Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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EUR/NZD:BULLISH CHANNEL | PRICE CAN GROW AFTER RETRACEMENTHello Everyone, I hope you'll Appreciate our Price action Analysis !
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BTC/USD Forecast Fundamental Analysis | PRICE ACTION LONGThe cryptocurrency market continues its correction, with $500+ billion wiped off the market cap over the past week. As global financial markets extend their losses, driven by high inflation, central bank monetary tightening, ongoing supply chain bottlenecks from the Covid-19 pandemic, and geopolitical conflicts, smart money dumps risky assets led by Bitcoin and Ethereum. It ended comparisons of Bitcoin to gold, which rallied as global tensions rose, while Bitcoin led the crash in risk assets, down 50+% from its latest peak in November 2021.
Oil prices spiked to above $100 per barrel, fueling inflationary pressures and keeping downward momentum on risk assets. The 30,000 level is likely to attract price action in the BTC/USD, with a breakdown to the June 2021 lows just above 28,000 likely. A breakdown below support can accelerate the sell-off into 20,000, and traders should remain patient over the following few trading sessions. As institutional investors shore up cash, they sell non-important assets, where Bitcoin ranks number one.
Bitcoin has been under pressure for several months, and over the past two years, many cryptocurrencies outperformed Bitcoin, as they offer better value, faster transaction times, cheaper costs, and higher scalability. Bitcoin will lose market share, as is Ethereum, as its status of a disconnected asset and a safe haven were proven wrong by real-world events. Rather than thriving during the risk-off period, like gold and silver, Bitcoin became the first victim. Investors should think about what purpose Bitcoin can serve, while traders should exercise caution before rushing to buy the dip.
NZD/USD:BEARISH CHANNEL | PRICE CAN DROP MORE ! ! Hello Everyone, I hope you'll Appreciate our Price action Analysis !
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USD/CHF:BULLISH CHANNEL | PRICE IS GROWING FAST⚡️ Everyone, I hope you'll Appreciate our Price action Analysis !
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