News Technical Analysis

Oil Continues to Climb, and the Dollar Is Trying to Consolidate

MARKET NEWS SUMMARY

Goldman Sachs believes the odds of the US economy slipping into a recession over the next 12 months have fallen to 25%.

On Tuesday, February 6th, The US bank said that the combination of rising jobs and gradually improving corporate confidence led to an upgrade in expectations, though it had previously seen the possibility of a recession of the economy as high as 35%.

US indices rose collectively at the close of Tuesday’s session after investors absorbed the statements of the US Federal Reserve Chairman regarding the time it might take for the central bank to tame inflation.

His comments boosted investors’ hopes for a less hawkish monetary policy after they were stymied by the strong, better-than-expected US jobs report last Friday.

U.S. DOLLAR INDEX (USDX)

After Powell’s speech, Chairman of the Fed Committee, yesterday, the dollar index was exposed to high volatility, which began to decline to 102.85 levels, then returned to settle below the pivot point at 103.30.

The index may have lost some bullish momentum, but the general trend has not been changed yet.

Pivot Point: 103.30

Resistance levelSupport Level
103.80102.75
104.25102.35
104.90101.75

EURO (EURUSD)

Yesterday, the EUR/USD pair witnessed good movements, after the Chairman of the Fed clarified the plan to raise interest rates in the coming months.

The Euro tries to consolidate above the important support levels at 1.0670.

Pivot point: 1.0715

Resistance levelSupport Level
1.07701.0670
1.08151.0625
1.09101.0525

SPOT GOLD (XAUUSD)

With more horizontal movements between the important support levels at 1865 and the important resistance levels at 1882, gold attempts bullish stability to remain above its pivot point for the day at $1873 an ounce.

Pivot Point: 1,870

Resistance LevelSupport Level
1,8831,865
1,8931,855
1,9021,835

US CRUDE OIL (USOUSD)

Oil prices rose in early trading on Wednesday, February 8, to extend the gains achieved during the past two days, as the dollar fell after Fed’s Chairman Jerome Powell appeared less hawkish on interest rates than markets expected and with a sudden decline in US crude stocks.

Brent crude futures rose 11 cents, or 0.1%, to $83.80 a barrel, extending its gains of 3.3% in the previous session.

US West Texas Intermediate crude futures rose 13 cents, or 0.2%, to $77.27 a barrel, after jumping 4.1% in the previous session.

What supported the market was that the weekly inventory data issued by the American Petroleum Institute showed that crude stocks fell by about 2.2 million barrels in the week ending on February 3.

Designer

Recent Posts

Market Closure in November

Dear Valued Clients, Please be advised that the following instruments' trading hours and market session…

1 week ago

Trading Hours Adjustment for upcoming US Daylight Saving

Dear Valued Clients, Please be informed that the trading hours for the following products will…

1 week ago

What are Forex Trading Sessions in India Time

Forex trading is a global phenomenon that operates 24 hours a day for five days…

1 week ago

Important Announcement – U.S. Election 2024

Dear Valued Clients, As we approach the 2024 U.S. election on November 5, 2024 (next…

1 week ago

Market Closure in November

Dear Valued Clients, Please be advised that the following instruments' trading hours and market session…

1 week ago

Role and Regulation of Forex Brokers in India

As the largest market in the financial world, the Forex Exchange Market attracts trillions of…

2 weeks ago

This website uses cookies.