Daily market analysis

March 30, 2022

On Tuesday, US equity markets climbed significantly as a result of Russia’s determination to engage in talks with Ukraine and begin reducing troop operations surrounding the city of Kyiv. The S&P 500 index increased by 1.13 percent, the Nasdaq 100 increased by 1.62 percent, and the Dow Jones Industrial Average increased by 0.90 percent.

On the other hand, market players continue to be concerned about the potential of recession, owing to the higher short-term US bond yields relative to long-term US bond yields. While the 2-year yield on US Treasuries is technically equal to the 10-year yield, the intersection of the 5-year yield curve has exceeded the 10-year or even 30-year yield, as it did in 2006, precipitating the Great Recession in 2008.

This existence will undoubtedly weaken the US Dollar index in the future, but it will rebound again as a result of the Fed’s aggressive monetary policy this year. Commodity prices are beginning to fall as the Russian invasion of Ukraine subsides, putting pressure on the Australian dollar soon.

Main Pairs Movement

AAPL increased 1.23 percent to close at $178.76 for the 11th consecutive day.

TSLA closed somewhat lower on the day following a very large surge at the session’s start, but it still prints extremely high at $1098.64.

INTEL also increased following Monday’s flat performance, closing at $52.23, up 0.40 percent.

USOUSD (WTI Texas) concluded higher than its opening price and gained as much as 1.65%, following a period of lower movement and a brief dip below $100.

The USD’s weakness versus several major currencies resulted in the strongest strengthening of the EURUSD, which increased by 0.97 percent, and the weakest USDJPY.

Technical Analysis

GBPUSD (4-Hour Chart)

GBPUSD temporarily climbed on Tuesday before closing with only a modest increase over the opening price. Had broken through the resistance level of 1.3125 and the support level of 1.3080, however, the price of GBPUSD is currently trading above the 1.3080 support level. GBPUSD continues to trade in a range of 1.3080 – 1.3125, with a probable breakout. If it breaks through 1.3125, the next target for GBPUSD will be 1.3188. Concerning the lower level, if GBPUSD falls below 1.3080, a move to the support range between 1.3000 and 1.3020 is possible. On the four-hour chart, GBPUSD is trading below its 50-day, 100-day, and 200-day simple moving averages (SMAs).

Resistance: 1.3126, 1.3188

Support: 1.3080, area (1.3000 – 1.3020)

EURUSD (4-Hour Chart)

EURUSD was the major currency pair that gained the most in the majors after breaking through our resistance levels. EURUSD is currently stalled at the 200-day simple moving average, with immediate resistance located between 1.1131 and 1.1156. While 1.1070 and 1.1040 serve as support levels. EURUSD is currently trading above its 50-day and 100-day simple moving averages (SMAs) on the four-hour chart while attempting to break above the 200-day SMA.

Resistance: 1.1131. 1.1156

Support: 1.1070, 1.1040

XAUUSD (4-Hour Chart)

Yesterday, XAUUSD plummeted to our lowest support level of $1893 but was able to end the day back up to $1919. Today’s movement in XAUUSD appears to be a little weaker, with the pair attempting to breach the support levels once more. Currently, the range is $1910 – $1936, with some resistance at $1921. $1948 and $1964 remain resistance levels, while $1893 is the next support level. XAUUSD is currently trading below its 50-day, 100-day, and 200-day simple moving averages on the four-hour chart.

Resistance: $1936, $1948, $1964

Support: $1910, $1893